2006 (9) TMI 512

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....the deduction of tax under the Assam Value Added Tax Act, 2003 (hereinafter referred to as, "the Act"), from the petitioners' bills for the works executed for the Indian Oil Corporation Ltd., Digboi (hereinafter referred to as, "the IOC"), without complying with the provision of section 47(1)(b)(i) thereof. I have heard Mr. Nath, learned counsel for the petitioners and Mr. D. Saikia, learne....

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....ities of oil for issuing a certificate of tax exemption in terms of section 47(1)(b)(i). The application remained unresponded and the deduction of tax at source continued unabated from the bills of the petitioners. Mr. Nath, has argued that as the works executed by the petitioners wholly do not comprehend an element of sale under the Act, they are, under section 47(1)(b)(i) of the Act, entitled....

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....ion relatable to the issue, this court while negating the assailment, held that under the 1. Oral. 2. Reported as Arunodoi Construction Co.(P) Ltd. v. State of Assam [2002] 127 STC 561(Gauhati). above provision, the liability to pay tax at source was limited to the sale or supply of goods whether under direct supply or works contract exigible to tax under the said statute. Reading down th....

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.... inter-State trade, declared goods, exempted goods, etc., etc., shall also be applicable in case of deduction of tax at source under section 27 of the Act." Under section 47(1)(b)(i) of the Act, if on an application being made by any contractor, the authority prescribed is satisfied that any works contract involved is divisible and involves transfer of property in goods as well as labour and se....