Petitioner's counsel submitted that transport contracts are not works contracts and TDS is inapplicable citing a 2014 judgment. Court ordered refund of TDS with interest and directed non-deduction in future.
Refund of taxed deducted with interest; non-deduction of TDS on future transport bills.
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WP(C) NO.634/2017
BEFORE
HON’BLE THE CHIEF JUSTICE MR. T. VAIPHEI HON’BLE MR. JUSTICE S. TALAPATRA
Present:
For the petitioner : Mr. B.N. Majumder, Advocate, Mr. D.J. Saha, Advocate. For the respondents : Mr. D.C. Nath, Advocate. 12.07.2017.
It is submitted by Mr. B.N. Majumder, the learned counsel for the petitioner, which is not disputed by Mr. D.C. Nath, the learned State Counsel that this writ petition is covered by the judgment dated 07.01.2014 passed by this Court in WP(C) No.127 of 2013 and others and can be disposed of in terms thereof.
From paragraph 5 of the aforesaid judgment, it is clear that a contract to transport goods from one place to another is not a works contract and as such, no TDS is admissible.
In view of this, the tax which has been deducted shall be refunded to the petitioner along with statutory interest within 3(three) months from today failing which the State shall be liable to pay interest @ 12% per annum. In case, there are any taxes due from the petitioner, the State shall be at liberty to adjust the refundable amount against the taxes due from the petitioner to the State.
Consequently, the State-respondents are directed not to make TDS in future from the bill of the petitioner in respect of transportation of goods.
The writ petition is disposed of in the aforesaid terms.
JUDGE CHIEF JUSTICE
Pulak
WP(C) NO.634/2017
Page 1 of 1
2 issues framed by the court
Whether tax deducted at source on transportation of goods is admissible under the law.
Whether the tax deducted shall be refunded with interest.
Colour shows how this judgement treated each authority
WP(C) No.127 of 2013Followed¶6
Petitioner
State
T. VAIPHEI
S. TALAPATRA
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
