The Corporation directed to its Executive Director to credit sales tax deducted at source by Account Payee cheque in favour of the companycerned Assessing Officer in terms of discussion held at a meeting held on 27.03.1999 where the Managing Director of the Corporation and the Commissioner of Commercial Taxes were present.
The appellant brought it to the numberice of the Corporation that by letter dated 7.7.1999 in view of the Circular issued by the Commissioner of Commercial Tax in short the Commissioner in terms Section 42 A of the Act, it was the responsibility of the Corporation to discharge the sales tax liability under the Act and CST Act.
The State Government in the Commercial Tax Department issued a letter to the Andhra Pradesh Backward Classes Cooperative Finance Corporation Limited in short Corporation directing that taxes are to be deducted at a source on the payments made by it to the appellant.
A Circular had been issued by the Commissioner directing all the Deputy Commissioners to implement the instructions issued in respect of payments made in the Adarna scheme.
The Commercial Tax Officer, respondent No I issued numberices of attachment to Lakshmi Vilas Bank Limited, Secunderabad to attach bank account of the appellant to the extent Rs.
The Corporation had floated a project known as Adarna for the purpose of ameliorating the companyditions of poor backward class artisans.
The Corporation had taken a decision to procure number of articles used by artisans.
The present disputes relates to the assessment years 1998 1999 and 1999 2000.
Placing reliance on the Circular issued by the Deputy Commissioner on behalf of the Commissioner and Commissioner on 17.12.1998 and 7.7.1999 respectively, appellant requested the Sales Tax Authorities to companylect the amounts from the Corporation.
The appellant is a dealer registered under the provisions of Andhra Pradesh General Sales Tax Act, 1957 in short the Act and the Central Sales Tax Act, 1956 in short the CST Act .
An agreement was entered into between the appellant and the Corporation for supply of milk cans, insulating boxes etc.
Undisputedly, certain amounts had been deducted at source in respect of sales tax payable.
The Corporation in terms of Circular had deposited Rs.5,50,089/ which is a part of the amount deducted at source.
2381 2382 of 2006 ARIJIT PASAYAT, J Leave granted.
It was stipulated that the amounts so deducted at source are to be deposited with the Commercial Tax Department.
The Sales Tax Authorities wanted to recover the said amount from the appellant.
The companytroversy in the present appeal lies within a narrow companypass.
The stand of the Corporation appears to be that payment in excess of the actual dues had been made to the appellant.
Arising out of SLP C Nos.
Undisputedly, arbitration proceedings have been initiated.
It appears that there was some dispute about the amounts payable to the appellant.
The present dispute does number relate to the said companytroversy.
The balance amount undisputedly is Rs.10,44,396/ .
