Sohan Engineering Constructions Vs. Commissioner of Commercial Taxes and ors.

.....schools (conditions of service) regulations act, 1978 [act no. 3/1978]. sections 9 & 2(21): jurisdiction of school tribunal whether a school run by cantonment board is not a recognised school within the meaning of section 2(21)? - held, the act is enacted to regulate recruitments and conditions of employees in certain private schools and provisions of the act shall apply to all private schools in the state whether receiving any grant-in-aid from the state government or not. private school is defined in section 2(2) of the act as a recognised school established or administered by a management other than the government or a local authority. recognised means recognised by director, the divisional board or state board. thus as far as the first part of the definition of being recognised is concerned, it includes, as stated above, four directors, the divisional boards and four state boards. the second part of this definition which comes after the comma refers to any officer authorised by director or by any of such boards. the question to be examined is whether school run by the cantonment board could be said to be one run by any such boards. a private school has to be recognised by the state or the divisional board or by any officer authorised in that behalf. when this phrase namely: recognised by any officer authorised by the director or by any such boards, is included in the latter part of section 2(21), such boards will be of the level of the state board or the divisional board. the boards referred to in the definition of the word recognised means the boards which deal with education at levels other than that of the level at which primary schools are operating. thus for being recognised, the school has to be recognised by the board and therefore, it has to be operating at a higher level i.e., secondary level. section 2(21) of the act defines the term recognised. the last clause therein is by any of such boards. the term such is defined in oxford dictionary as.....p. venkatarama reddi, j.1. heard both the counsel at the admission stage.2. the petitioner who is a contractor has sought for two reliefs, i.e., (i) to deduct tax at source at the rate of 1 per cent on material component involved in agreement no. ls/40/aibp/gvc-4/1997-98 dated march 11, 1998 entered into by the petitioner with the second respondent and (ii) not to deduct tax at source on items relating to excavation of earth work involved in the said agreement dated march 11, 1998. the description of the contract work entrusted to the petitioner in lining of kakatiya canal from k.m. 268 to 283.3. similar matters were disposed of by the same division bench and other benches taking the view that the tax deduction at source cannot be resorted to in case of earth work excavation involving pure labour contract unless the earth is brought from outside source and deposited at the work spot. as regards the rate of tax deduction on the value of the material transferred or used in the course of works contract, we have held that the rate of tax is 1 per cent or 3 per cent depending upon the nature of the work. if the work is in the nature of canal digging, lining and repairing, the tax deduction shall be at 1 per cent otherwise it shall be at 3 per cent.4. it is stated that part of the work relates to earth work excavation. if no earth is brought from outside source, we direct that no tax shall be collected at source. as regards the rate of tax on the value of the materials had in other items of work, in view of the nature of the work, obviously the tax deduction at the rate of 1 per cent is applicable as per clause (ii) of rule 17-g(1).5. we, therefore, direct the authorities concerned to act in accordance with the legal position at clarified above while deducting the tax at source.6. the writ petition is accordingly disposed of at the admission stage.