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Patna High Court - Orders

M/S Debashree ... vs The Ircon International Ltd & on 22 May, 2015

Author: Ramesh Kumar Datta

Bench: Ramesh Kumar Datta, Anjana Mishra

   IN THE HIGH COURT OF JUDICATURE AT PATNA
               Civil Writ Jurisdiction Case No.9870 of 2012
======================================================
M/S Debashree Constructions(India)Pvt.Ltd.
                                                      .... .... Petitioner/s
                                   Versus
The Ircon International Ltd &
                                                     .... .... Respondent/s
======================================================
                                    with
               Civil Writ Jurisdiction Case No.6244 of 2015
======================================================
M/s Baba Hans Construction Pvt. Ltd.
                                                      .... .... Petitioner/s
                                   Versus
The State of Bihar Through The Principal Secretary, Road Construction
Department, Government of Bihar & Ors
                                                     .... .... Respondent/s
======================================================
                                    with
               Civil Writ Jurisdiction Case No.6933 of 2015
======================================================
M/s Sincon Infrastructure Pvt. Ltd.
                                                      .... .... Petitioner/s
                                   Versus
The State of Bihar & Ors
                                                     .... .... Respondent/s
======================================================
                                    with
               Civil Writ Jurisdiction Case No.7608 of 2015
======================================================
M/s Sharda Construction
                                                      .... .... Petitioner/s
                                   Versus
The State of Bihar & Ors
                                                     .... .... Respondent/s
======================================================
                                    with
               Civil Writ Jurisdiction Case No.7788 of 2015
======================================================
M/s Sharda Construction
                                                      .... .... Petitioner/s
                                   Versus
The State of Bihar & Ors
                                                     .... .... Respondent/s
======================================================
Appearance :
(In CWJC No.9870 of 2012)
For the Petitioner/s     :   Mr. D.V.Pathy,
                             Mrs. Manju Jha
                             Mr. P.K.Mishra, Advocates
For the State            :   Mr. Vikash Kumar, AC to PAAG
       Patna High Court CWJC No.9870 of 2012 (9) dt.22-05-2015

                                                2/3




                  ======================================================
                  CORAM: HONOURABLE MR. JUSTICE RAMESH KUMAR
                  DATTA
                           and
                           HONOURABLE JUSTICE SMT. ANJANA MISHRA
                  ORAL ORDER
                  (Per: HONOURABLE MR. JUSTICE RAMESH KUMAR DATTA)

9   22-05-2015

In the counter affidavit filed on behalf of the Respondent No.5, a table with respect to 5 categories of works has been produced in which it has been shown that the percentage of TDS is 5% whereas the percentage of actual tax is 5% to 7%. An attempt is thus made to show that while the rate of tax for TDS not exceeding 5% is prescribed and the actual tax is not in fact less than the TDS amount and thus no excess TDS shall be deducted.

Upon hearing learned counsels for the parties, this Court finds that the issue is not payability of the actual tax rather the actual tax being paid by the contractors on account of the benefit of input tax credit to which they are entitled with regard to the different materials being used by them, as a result of which the tax that is actually being paid by them is lower than 5% being charged as TDS and it is resulting in a large number of claims of refund.

The chart produced before us does not take into account the average percentage of input tax being claimed by the contractors of 5 categories and only if the same is also shown to Patna High Court CWJC No.9870 of 2012 (9) dt.22-05-2015 3/3 us, the correct picture can emerge.

Let a further affidavit be filed by the Commissioner.

In the meantime, the interim order passed on 19.3.2015 in CWJC No. 9870/2012 shall apply in the other analogous matters also.

Put up the matter on 29th June, 2015.

(Ramesh Kumar Datta, J) S.Pandey/-

(Anjana Mishra, J) U