ALL GOA CONTRACTORS ASSOCIATION Vs. STATE OF GOA, THROUGH ITS CHIEF SECRETARY, GOVERNMENT OF GOA, HAVING ITS OFFICE AT SECRETARIAT, PORVORIM, BARDEZ, GOA

JUDGEMENT

(1.) Heard Ms. Nikita Badhekar, learned Counsel appearing for the Petitioners and Mr. S. D. Lotlikar, learned Advocate General, appearing for the Respondents.

(2.) The above Petition, inter alia, seeks for a direction to declare the insertion of Rule 4A by Notification dated 30.12.2008 is ultra vires and unconstitutional and for a declaration that inserting entry C-14 by Notification dated 07.07.2009 is ultra vires and unconstitutional and further that the amendment made to Section 28(1) by the Goa Value Added Tax (Seventh Amendment) Act 2013 (Goa Act 12 of 2013) i.e. the TDS provisions to be unconstitutional, invalid and ultra vires and further to declare that all assessments made based on said Amendment to be illegal and to declare the Amendment made thereafter dated 30.03.2012 to be clarificatory and retrospectively operative to the extent it relates to amendment to entry at serial no. 14 of the Schedule 'C'.

(3.) The Petitioner nos. 2 to 5 are contractors duly registered under the Goa Value Added Tax Act, 2005 as also registered with the State Government as PWD Contractors and Water Resource Department Contractors. After the Value Added Tax 2005 came into force on 01.04.2005, Rule 4A of the Goa Value Added Tax Rules 2005 was introduced on 31.12.2008. By virtue of such Rule, adjustments was allowed from the total receipts at serial no. 14 of Schedule 'C" was introduced to the said Act of 2005 on 09.07.2009 whereby for the first time, by the said entry, 8% tax on works contract was introduced. Thereafter, on 01.04.2011, said entry at serial no. 14 of Schedule 'C' was substituted enhancing the rate on work contracts from 5% to 8%. The challenge in the above Petition is to the validity of Rule 4A introduced on 04.05.2005 being unreasonable, illegal and unconstitutional as also the insertion made at serial no. 14 of Schedule 'C' of the said Goa Value Added Tax Act of 2005 is unconstitutional and in violation of the prohibition of Sections 14 and 15 of the Central Sales Tax Act. The Petitioner also challenges the TDS provisions by way of amendment to Section 28(1) introduced by the Goa Value Added Tax (Seventh Amendment) Act, 2013 (Goa Act 12 of 2013) whereby 5% is to be deducted from the total value of works contract payable to the contractor.