STATE OF TRIPURA Vs. CHANDAN DEB

JUDGEMENT

(1.) Feeling aggrieved and dissatisfied with the impugned common judgment and order dtd. 29/8/2007 passed by the Gauhati High Court by which the Division Bench of the High Court has dismissed the writ appeals preferred by the State of Tripura which were against the judgment and order passed by the learned Single Judge declaring Rule 3A(2) of the Tripura Sales Tax Rules, 1976 (hereinafter referred to as the 'TST Rules ') as ultra vires to the Tripura Sales Tax Act, 1976 (hereinafter referred to as the 'TST Act ') and partly allowing the appeals preferred by the original writ petitioners quashing and setting aside that part of the judgment and order passed by the learned Single Judge by which it was held that the original writ petitioners were liable under Sec. 3AA of the TST Act, the State of Tripura has preferred the present appeals.

(2.) That the Tripura Sales Tax Act, 1976 was enacted in the year 1976 containing provisions for the levy of tax on sale on certain goods in Tripura. Sec. 3A provided for tax on transfer of property in goods involved in execution of works contract. Sec. 3AA provided for deduction of tax at the time of payment. Sec. 44 provided for power to make Rules. In exercise of the Rule making power under Sec. 44 of the TST Act, the Tripura Sales Tax Rules, 1976 came to be enacted. Rule 3A(2) provided for deduction of tax at source equal to 4% on transfer of rights to use goods.

(3.) Ms. Madhavi Diwan, learned ASG and Shri Shuvodeep Roy, learned counsel have appeared on behalf of the State of Tripura, Shri Ahanthem Henry, learned counsel has appeared for respondent no.1 in all the matters, Shri Somiram Sharma, learned counsel has appeared on behalf of the ONGC and Shri Abhay Kumar, learned counsel has appeared on behalf of the FCI.