Jawaharlal Gupta, J.

1. Does carnage of goods amount to "carrying out" of "any work" within the meaning of Section 194C of the Income-tax Act, 1961 ? This is the short question that arises for consideration in this case.

2. The petitioners are transport operators. They hold permits for carriage of goods and provide services of transportation. They allege that the provisions of Section 194C which authorise the deduction of an amount towards income-tax from a contractor "for carrying out any work in pursuance of a contract" with the Government or any of the authorities, etc., mentioned in Clauses (a) to (i) of Sub-section (1) are not applicable in their cases. The petitioners question the validity of Circular No. 681 (see [1994] 206 ITR (St.) 299), dated March 8, 1994 (only in so far as it applies to them) issued by the Central Board of Direct Taxes. They allege that the provisions of Section 194C do not apply to "transport contracts" and that the directions to the contrary as issued through the impugned circular in spite of the clear stipulations contained in the circulars dated September 26, 1972, and March 20, 1973, are wholly illegal and without jurisdiction. Is it so ?

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