Assessee floated tenders to select third-party bar contractors (licensees) to sell eatables and collect empty bottles left by consumers at bars situated adjacent to/within assessee’s retail shop of liquor. Assessee acting as an agent merely collected tender/licence amount from successful tenderer and remitted 99 per cent of same to Government retaining 1 per cent commission. the AO held that  sell of bottles as scrap and treated the assessee as assessee-in-default for failure to collect tax at source under section 206C on amount tendered by bar licensee from sale of empty bottles. On writ allowing the petition the Court held that empty bottles were neither generated in manufacturing, nor in mechanical working of material and hence, cannot be termed as scrap. Neither assessee nor licensee were owners of waste bottles hence, sections 206C, 206CC and 206CCA were incorrectly invoked. Orders are not valid. Circulars and Notifications: Circular No. 7/2016, dated 7-3-2016 and Circular No. 525 dated 24-11-1998. (AY. 2016-17 to 2023-24)