Adhunik Power & Natural Resources Ltd. v. Central Coalfields Ltd. (2024) 296 Taxman 53 (Jharkhand)(HC)

S. 206C : Collection at source-Refund-Purchase of coal used in generation of power-Directed to refund the amount collected. [S. 206C(IA), 237,244A Art. 226]

Assessee (buyer of coal) filed a writ petition stating that seller of coal at instance of department forcefully collected certain sum from it towards tax collected at source (TCS) and deposited same with department and prayed for issuance of directions to department to refund said sum along with statutory interest to it. Allowing the petition the Court held that  since department committed illegality in compelling seller in effecting TCS qua transactions of purchase of coal, which according to assessee was genuinely used in generation of power, department is  directed refund entire sum collected as TCS from assessee to seller who shall thereafter refund same to assessee.  Interests as claimed/prayed by the assessee, the assessee would be at liberty to move competent Civil Court for redressal of his grievance of interest, if so advised. (AY. 2013-14 to 2018-19)