RAJIV GUMBER Vs. BHARAT SANCHAR NIGAM LIMITED

JUDGEMENT

(1.) The petitioners in these cases are contractors. They complain that the respondents have illegally deducted sales tax at the rate of 2 per cent from the payments made to them. According to the petitioners, the deductions from payments for supply of labour could not have been made.

(2.) In the reply filed on behalf of the respondents, it has been, inter alia, averred that contracts for laying of underground cables, erection of cabinets, pillars, including preparation of foundation, installation of terminal boxes/strips, etc., had been given to the petitioners. They had to use bricks, cement, saria, concrete, iron plates, hardware, etc. Thus, the sales tax has been validly levied.

(3.) Mr. Raman Sharma, learned counsel for the petitioners, contends that the respondents were not entitled to mechanically deduct sales tax at 2 per cent from the amounts due to the petitioners without examining the facts. Thus, the deductions made by the respondents are illegal. The claim made on behalf of the petitioners has been controverted by the counsel for the respondents.