TaxTMI 
TaxTMI 
2003 (8) TMI 500
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.... he is a registered dealer on the file of the first respondent. The petitioner undertook sub-contract work of construction of factory building for M/s. Hyundai Project at Sriperumbudur comprising roofing and wall cladding works from the principal contractor, M/s. Dual Structurals and Industries Ltd./the second respondent herein. In accordance with the terms and conditions of the work order and in accordance with the provisions of section 7-F, the principal contractor/second respondent was deducting two per cent tax amount from the amount payable to the sub-contractor/petitioner herein. Accordingly, a tax amount of Rs. 2,11,389 (Rs. 1,92,473 for the year 2000-2001 and Rs. 18,916 for the year 2001-2002) was deducted by the second respondent f....
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.... claims exemption. Since the petitioner has not produced form XXXVII certificate issued by the principal contractor/ second respondent to prove tax deducted at source, the respondent has issued the impugned attachment order dated April 28, 2003 along with B6 notice, so as to recover the tax dues. In the absence of proof as to the tax deducted at source, the respondent is perfectly correct in issuing the impugned order. Therefore, no interference is called for. 4.. The learned counsel for the second respondent appeared before me and argued in support of the second respondent and he has filed counter in this case. 5.. I heard the arguments of both the sides and perused the records. Before proceeding further, it is pertinent to refer to the ....
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....ler claiming the deduction. (5) Any person who contravenes the provisions of sub-section (1) or sub-section (2), shall pay, in addition to the amount required to be deducted and deposited, interest at two per cent per month of such amount for the entire period of default. (6) Where the dealer proves to the satisfaction of the assessing authority that he is not liable to pay tax under section 3-B or section 7-C, the assessing authority shall refund the amount deposited under sub-section (2), after adjusting the arrears of tax, if any, due from the dealer, in such manner as may be prescribed. (7) The tax or interest under this section shall become due without any notice of demand on the date of accrual for the payment by the person as prov....
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....(1). But, the proviso under section 7-F(4) throws the burden of proving of such tax sufferance on the dealer who claims deduction. Sub-section (7) of section 7-F stipulates that tax or interest under this section shall become due for payment only by the person who is liable under section 7-F(1) and (2) of the Act, without any notice of demand on the date of accrual. Subsection (8) of section 7-F provides for recovery of whole amount of tax payable by such person, if such person contravenes the provisions of sub-sections (1) and (2) of section 7-F, i.e., from the person on his failure to deduct and deposit the tax amount. From the above provisions, it is very clear that all the duties and responsibilities of deducting and depositing of tax,....