TaxTMI 
TaxTMI 
2016 (7) TMI 1058
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.... Act, 2004 ("DVAT Act") for a lower deduction certificate. 2. The Petitioner is undertaking the execution of works contract in respect of two projects one awarded to it by the National Building Construction Corporation Limited ("NBCC") for construction of a museum at the existing garage of the President Estate i.e. Rashtrapati Bhawan the value of which contract is Rs. 66,92,71,798. The other contract awarded by the Central Public Works Department ("CPWD") is for construction of an additional office complex for the Supreme Court of India at the adjoining Pragati Maidan, New Delhi the value of which is Rs. 4,68,25,69,443. Admittedly, both the works contract involved transfer of property in goods as well as provisions of labour and services....
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....ate shall affect liability of the contractor to pay tax under this Act." 5. Admittedly, in the present case both the works contract involved "transfer of property in goods and labour and service". Along with its application dated 20th January 2015 made to the Commissioner VAT, the Petitioner enclosed the details of the civil materials supplied like sand, aggregate, bricks, electricals, pipes and pipe fittings which were to be incorporated in the two contracts. This was obviously on an estimate basis as the execution of both contracts was in progress. The Petitioner also enclosed with the application a computation of VAT which worked out to Rs. 4.65 crores i.e. 0.87% of the contract value towards VAT liability after adjustment of input ta....
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....artmental representative (DR) that "lower deduction of TDS is allowed in cases where dominant part of the labour and services or the works involved only labour and services." (emphasis supplied) The DR appears to have urged that the issue raised by the applicant is an issue of assessment and will be considered at the time of assessment and not in this forum." Thereafter the Commissioner, VAT has observed as under: "I have heard the arguments put forth from both the sides and gone through the documents on record. I agree with the views of the D.R., the issue raised by the applicant shall be considered at the time of assessment and not in this forum." 9. This Court has heard the submissions of Mr. Lakshmikumaran, learned counsel f....
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....oticed, is totally bereft of any reasoning. 13. Mr. Satyakam, learned counsel appearing for the Respondent No.1 tried to make best of the situation by referring to the counter affidavit filed by the Department which according to him supplied the reasons that would justify the conclusion arrived at by the Commissioner. 14. It is a settled legal proposition that a statutory authority discharging a quasi-judicial function has to spell out the reasons for his conclusion in the order itself. The reasons for such conclusion cannot be supplied subsequently, much less in the form of a counter affidavit by the department to a writ petition that challenges the order. Consequently, the Court does not consider it appropriate to examine the counte....