( 1 ) THE issue involved in this writ petition is whether common carriers of goods by road are liable to deduction of tax at source under Section 194c of the Income-tax Act, 1961 (hereinafter referred to as "the Act" ).

( 2 ) PETITIONER No. 1 is a registered society representing goods carriers and transporters in the State of West Bengal. According to the petitioners, the members of petitioner No. 1 are common carriers of goods. Except for transporting goods, such members do not carry out any other work in connection with the goods transported such as loading and unloading of the goods,

( 3 ) SECTION 194c of the Act was introduced in 1972. Briefly stated, Section 194c provides for the deduction of two per cent. on account of income-tax on the income comprised in payments made to contractors and subcontractors "for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract between the contractor" and specified concerns or authorities.

( 4 ) ON May 29, 1972, a circular was issued by the Government of India explaining the scope and ambit of, inter alia, Section 194c. In so far as it is material the circular (Circular No. 86