The petitioner has filed the writ petition directing the respondent Jharkhand Bijli Vitram Nigam Ltd  (JBVNL)  to issue TDS certificate for the amount deducted of Rs 2,90,32,000  as income tax @ 2 per cent from the bills raised by the petitioner for supply of materials to respondents  to enable the petitioner to get the tax credit. The Department has conducted the Survey and issued notice under section 201 to JBVNL.      Demand notice issued to the Jharkhand Bijli Vitram Nigam Ltd  (JBVNL)  that it committed default in not making TDS deductions cannot cloak the JBVNL with any authority or even an excuse to withhold a certain amount from the running bills of the contractor. This is also relevant that the deductions by the JBVNL starting from the financial year 2016-17 have accumulated to Rs. 2,90,32,000 but it did not deposit the said amount with the IT Department. Amount so withheld from the running bills of the petitioner-firm is speculative and kind of a wagering step by the JBVNL. JBVNL has no authority in law to withhold Rs. 2,90,32,000 as “kept back” amount for the purpose of litigation with the IT Department. Action of the JBVNL in withholding Rs. 2,90,32,000 is therefore held illegal and deprecated and cost must be imposed upon it. JBVNL has not followed its own stipulation under cl. 10.1 of the general conditions of contract and it seeks to place a very unreasonable reliance on cl. 10.7 which is not at all applicable in a situation like the present one. It is not that a new tax liability has been created for which appropriate and equitable adjustment in the contract price is required. Petitioner-firm has specifically pleaded that it has filed IT returns and already paid taxes which shall include the illegal 2 per cent retention from its running bills. Court also held that  refund of Rs. 2,90,32,000 must therefore carry interest as a matter of course. JBVNL must be saddled with cost of Rs. 5 lacs which shall be recovered from the managing director