HARSHA CONSTRUCTION ENGINEERS Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) LEAVE granted. National Highway Authority of India granted a contract in favour of the respondent nos. 2 and 3, viz. , M/s. Madhucon Projects Ltd. and m/s. Madhucon Binapuri JV. The said respondents granted a sub-contract in favour of the appellant. The works contract involved in the agreement entered into by and between the respondent nos. 2 and 3 on the one hand and the appellant before us on the other, is exigible to sales tax in terms of the provisions of A. P. General Sales Tax Act, 1957 (for short 'the Act' ). Section 5f of the said Act provides for a non-obstante clause in terms whereof every dealer is to pay tax under the said Act for each year, on its turnover of transfer of property in goods whether as goods or in some other form, involved in the execution of works contract, at the rate specified therein. The fourth proviso appended tereto reads as under:

(2.) THE grievance of the appellant is that although tax had been deducted at source from his running bills by the respondent nos. 2 and 3 purported to be in terms of section 5-H of the said Act, but they did not fulfill their statutory obligation in remitting the amount so deducted in terms of sub-section (2) of Section 5-H thereof.

(3.) BUT on verification of the bills passed by M/s. Madhucon projects Ltd. , and M/s. Madhucon binapuri J. V. , in favour of M/s. Sri harsha Constructions they have made deductions on the value of the contract during the year 2002-03 as shown below.