INDERJIT SINGH Vs. STATE OF H.P.

JUDGEMENT

(1.) THE petitioners by means of this writ petition have prayed that the excess tax paid by them, orders for refund whereof have been made by the assessing authorities be ordered to be refunded to them alongwith interest as legally admissible in terms of Section 18 of the H.P. General Sales Tax Act (GST). Section 12 A of the H.P.G.S.T. Act provides that every person making payment or discharge of any liability involved in the execution of works contract shall deduct an amount not exceeding four percentum from the bills or invoices raised by the works contractor. The person making any payment to a work contractor is bound to make deduction on account of sales tax at the rate of 4 percentum from the amount paid to the contractor and deposit the same with the Sales Tax Authorities. Obviously this tax deducted at source has to be taken into account at the time of final assessment of the returns filed by the contractor.

(2.) IN the present case the various returns of the petitioners were assessed as follows: <FRM>JUDGEMENT_810_TLHPH0_2007.htm</FRM>

(3.) ON 16.11.2005 when the writ petition came up before this Court, the Court passed the following order: