PATEL ENGINEERING LTD Vs. STATE OF ARUNACHAL PRADESH

JUDGEMENT

(1.) THE petitioner herein, which is a company, incorporated under the Companies Act, 1956, has been executing various works at Kameng Hydro Electric Project, in the district of West Kameng, Arunachal Pradesh. The petitioner is also involved in the business of construction of infra-structure facilities like dams, tunnels, powerhouse, etc. , all over the country. Pursuant to the work orders, issued by North East Electric Power Corporation Ltd. (NEEPCO), in favour of the petitioner, the petitioner has been executing various civil works. The petitioner is a 'registered dealer' under the Arunachal Pradesh Goods Tax Act, 2005, and possesses a certificate of registration issued, in this regard, by the appropriate authority.

(2.) THE Arunachal Pradesh Goods Tax Act, 2005 (in short, 'the Act of 2005') has been enacted with the object of levying consumption tax, on goods consumed in the State of Arunachal Pradesh, through a combination of tax on entry of goods into the local area as defined in the Act of 2005 and value added sales tax on the business carried out in the said State.

(3.) AFTER the insertion of Section 47a, the Superintendent of Tax and Excise, West Kameng, District Bomdila, issued a notice, dated 15. 02. 2008, to respondent No. 4 informing the latter that the Government has, vide its Notification No. 158 Vol. XIV, dated 11. 04. 2007, directed all the Government Departments to deduct tax, at source, at the time of payment to the 'dealer', by adjustment or any other manner, an amount calculated @ 12. 5% on the total value of the works contract. The respondent No. 4 has been accordingly directed to deduct tax @ 12. 5% on the payments to be made to the works contractors. On the basis of such notice, respondent No. 4, namely, North Eastern Electric Power Corporation Ltd. has, according to the petitioner, verbally informed the petitioner that in view of the directions issued by the Superintendent of Tax and Excise, West Kameng, District: Bomdila, tax would be deducted @ 12. 5 paise in a rupee from the gross value of the bills of the petitioner.