GEETA PRASAD SINGH AND CO Vs. STATE

JUDGEMENT

(1.) These four writ petitions under Articles 226 and 227 of the Constitution raise common questions of law. They have, therefore, been heard together and are being disposed of by this common judgment.

(2.) The questions agitated at the Bar are pure questions of law. They relate to the ambit/vires of notifications (annexures 1, 1/A and 1/B, all dated 7th November, 1984). As a follow up of those annexures, the Bihar Government in the Finance (Commercial Taxes) Department issued notice (annexure 2) whereby all Government departments, Board and Organisations were directed to deduct 4 per cent of the bills of all contractors engaged in works contract. In essence, the petitioners have prayed for quashing of annexures 1 series and annexure 2. Since the questions agitated are pure questions of law, it is not necessary to advert to the additional prayer of the petitioners in the different writ petitions for quashing the deductions in the bills of the petitioners.

(3.) The petitioners are contractors registered with various departments of Government of Bihar for executing works contracts. In terms of the contracts, materials like bitumen, "cement, steel rods, etc., are/were to be supplied to the petitioners by the Government. The value of the materials supplied was to be deducted from the bills of the contractors. In terms of annexures 1 series and annexure 2 the departments deducted 4 per cent from their entire bills. That brought the petitioners rushing to this Court. According to the petitioners, they were liable to pay tax only upon the value of the materials supplied/sold by them to the Government. On the face of it the contention of the petitioners appeared sound. Rules were, therefore, issued and by various ad interim orders, it was ordered that deduction of only 4 per cent of the value of materials supplied/not of the entire bills could be deducted. The rest of the bills should be paid to the contractors.