TaxTMI 
TaxTMI 
TaxTMI 
2009 (8) TMI 1092
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....etitioner has further prayed that clause 14(a) of the agreements, dated May 26, 2006, March 13, 2007, March 14, 2007, February 15, 2008 and February 23, 2008 (annexures P1 to P6, respectively), which prescribes deduction of sales tax at two per cent from the running bills of the contractor, may be declared as illegal and settled principles of law. Still further, refund of the entire deductions along with interest till the date of payment has been claimed. Brief facts of the case are that the petitioner is a proprietorship concern and carrying on the business of performing various kinds of labour jobs. It has entered into a number of agreements with the Bharat Sanchar Nigam Limited (BSNL)-respondent No. 1 during the years 2006 to 2008 for r....
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....66 of the Constitution, which reads thus: "366. Definitions. - In this Constitution, unless the context otherwise requires, the following expressions have the meanings hereby respectively assigned to them, that is to say - . . . (29A) 'tax on the sale or purchase of goods' includes - (a) . . . (b) a tax on the transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract). (c) to (f) . . ." On the basis of the above amendment, the Punjab General Sales Tax (Amendment) Act, 1997 was legislated and section 10C was incorporated in the PGST Act with immediate effect, vide notification dated July 1, 1997. Sub-section (1) of section 10C of the PGST Act cont....
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....s was involved, no sales tax could be allowed to be collected merely on the ground that the same could be refunded later. In the written statement filed on behalf of respondent No. 1 the stand taken is that the BSNL-respondent No. 1 has rightly deducted sales tax at two per cent from the running bills of the petitioner strictly as per the terms and condition contained in para 14(b) of the agreements entered into between the parties. It has also been asserted that 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 or goods in pursuance of works contr....
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....ed by this court, were sent by the learned Advocate-General, Punjab, including the one granting last opportunity. There was no explanation tendered by the Excise and Taxation Officer in respect of the period from January 2009 to June 2009 for not filing written statement although some explanation was made from June 2009 onwards. Financial Commissioner has stated that action against the errant officer is being taken separately on administrative side. In pursuance to the stand taken by the Financial Commissioner, an affidavit of Shri H. K. Nagpal, Additional Secretary, Excise and Taxation Department, Government of Punjab, placing on record preliminary inquiry report dated July 27, 2009, concluding that Sarvshri J. P. Singh, Assistant Excise ....
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....r four years. With regard non-supply of any material by the petitioner to BSNL-respondent No. 1, it has been pointed out that some material would certainly exchange hands during a period of four years because it is own case of the petitioner that it is doing the work of repair of cables, etc., under the contract agreements and while carrying out those works goods, viz., cable, cement, bajri, sand and bricks, etc., would be certainly used. Having heard learned counsel for the parties and perusing the paper book with their able assistance we are of the considered view that there is merit in these petitions and the same deserves to succeed. BSNL-respondent No. 1 cannot make any deduction from the payments to be made to the petitioners. No tax....