2008 (11) TMI 627

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....educted. Case of the petitioner is that it was awarded a contract for performing jobs of Bharat Sanchar Nigam Limited, which in substance related to data entry, apart from certain other jobs. Job description of the contract is as under: Sr. No. Description Rates inclusive of all taxes 1. Reconcilation of remittance in bank Rs. 1.40 per cheque/draft   I. Data feeding of cheques and drafts II. Preparation and printing of remittance challan in triplicate III. Affixing of rubber stamps on each copy of remittance challan and cheques.     IV. Tearing of challan in two parts and stitching of cheques/drafts     V. Posting of cheques, cheques dishonour and reconciliation ....

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....nting trail balance IV. Printing sub-ledger V. Print of Ledger   4. Other computerized items Rs. 2 per entry 5. Data feeding of change in various component of salary like basic pay, DA, HRA, CCA, etc., and recovery items like GPF (C), CPF. advance, etc. 0.01 paise per entry 6. Taking out of print of balance/sheet current (receipt side) 0-01 per set   The work referred includes     (a) GPF(C) and refund class IV     (b) GPF (C) and refund other than class IV     (c) Loan and advances     (d) HRR     (e) PLI     (f) Society dues     (g) Welfare   7. ....

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....st 13, 2008 See page 422 supra. ), holding that if in a works contract, no sale of goods was involved, no sales tax could be allowed to be collected merely on the ground that the same could be refunded later. Only plea of respondent No. 1 is that as per contract entered into between the petitioner and respondent No. 1, respondent No. 1 is entitled to make deductions of two per cent of the payment to be made to the petitioner under section 27 of the Act. Section 27 of the Act envisages deduction only where payment is made in a contract for transfer of property in goods in pursuance of works contract, which admittedly, is not the situation here. In view of admitted facts, we are of the view that respondent No. 1 cannot make any deductio....