2012 (3) TMI 423

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.... TODI, MR.A NATH This petition seeks injunction against deduction of tax at source from the bills of the petitioner for the work done under agreement dated 20.08.2010 (Annexure-II). Case of the petitioner is that under the said agreement the petitioner is to set up Meghalaya State Wide Area Network (MSWAN) to modernize the communication set up for the Meghalaya Government on Build-Own-Operat....

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....n 106 of the VAT Act, every person responsible for paying the sale price for supply of goods is under obligation to deduct tax at source at the rate of 12.5% from the work value. Since in the present case no sale of goods is involved nor there is transfer of right to use goods which may amount to deemed sale nor transfer of goods involved in a works contract, the petitioner has no liability and th....

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....ansaction is yet to be determined by the statutory authorities under the applicable VAT law and the said adjudication cannot be preempted at the forum of writ jurisdiction. We have considered the rival submissions and perused the record. It is well settled that under the provisions of sale tax law, deduction of tax at source is permissible with reference to prima facie taxable value of the t....