In the recent case, the Jharkhand High Court, disposed of the writ petition which sought a refund of the Tax Collected at Source ( TCS ) amount. The court resolved the matter based on its earlier landmark decision, finding that the issue was directly covered by that precedent.
R.S Coke Industries (Pvt.) Ltd., the petitioner/assessee, seeks the court order directing the respondents to refund the TCS amount collected. The counsel for the petitioner had argued that the case is directly covered by the decision in Adhunik Power and Natural Resources Ltd. v. Central Coalfields Ltd and therefore the matter should be disposed of in accordance with that precedent.
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TCS stands for Tax Collected at Source. It’s a tax mechanism where the seller collects tax from the buyer at the time of the sale of certain goods or services and deposits it with the government. The buyer can then claim this as a credit against their final tax liability.
In the case of Adhunik Power and Natural Resources Ltd. v. Central Coalfields Ltd., the petitioner/assessee,the Jharkhand High Court addressed the issue of tax collected at source (TCS) on coal purchases intended for power generation. The petitioner contended that Central Coalfields Ltd. (CCL) improperly collected and deposited TCS despite the coal being used for power generation, which they believed should have been excluded.
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The court ruled in favor of the petitioner, directing the tax department to refund the TCS collected to CCL, who would then pass it onto the petitioner and also contended that regarding the other interest claimed, the petitioner can approach the competent Civil Court if so advised.
Chief Justice B.R. Sarangi and Justice Sujit Narayan Prasad relied on the decision made in Adhunik Power and Natural Resources Ltd. v. Central Coalfields Ltd and disposed of the writ petition.
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