PANDIT ELECTRICAL PRIVATE LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The Petitioner M/s Pandit Electrical Private Limited (hereinafter referred to as 'the Company') is a supplier of goods to the Respondent East Central Railway (hereinafter referred to as 'the Railway').

(2.) According to the Petitioner it is a Company incorporated under the provisions of the Companies Act, 1956 and has its Registered Office at Mugalsarai in the State of Uttar Pradesh. The Company supplies goods to the East Central Railway in the State of Bihar, for which it is liable to pay central sales tax at the rate of 4% per annum. It is the grievance of the Company that though it has paid central sales tax as required and is evidenced by the invoice produced on the record of the petition the Railway continued to deduct 4% of the contract amount as envisaged by Section 41 of the Bihar Value Added Tax Act, 2005 (hereinafter referred to as 'the Act of 2005'). The Petitioner has, therefore, demanded refund of the sum of Rs. 4,62,528/- already deducted by the Railway and for a relief restraining the Railway from deducting any amount from the amounts payable for the goods supplied by the Company.

(3.) Learned Advocate Mr Nand Kishore Singh has appeared for the Petitioner. He has drawn our attention to the documents at Annexure 'B' Series to buttress his argument that the Company did pay central sales tax at the rate of 4%, as such no tax was payable to the State of Bihar under the Act of 2005. Nevertheless, the Railway has deducted 4% of the contract money as envisaged by Section 41 of the Act of 2005. He has further submitted that inspite of the interim protection granted to the Company the Railway continued to deduct such amount from the contract amount pending the writ petition.