The Jharkhand High Court has held that any unjust withholding of money or property from another party goes against the fundamental principles of justice, fairness, and good conscience and directed JBVNL to refund Tax Deducted at Source ( TDS ). The Court has imposed a substantial penalty of Rs 5 Lacs on the Managing Director of Jharkhand Bijli Vitran Nigam Limited (JBVNL) for engaging in unnecessary litigation and presenting frivolous defences.
Anvil Cables, a private limited company, sought High Court intervention to compel JBVNL to issue a Tax Deducted at Source (TDS) Certificate for Rs. 2,90,32,000, which had been withheld without justification. JBVNL, in response, had appealed the demand notice from the Petitioner to the CIT( Appeal ).
It was found that the Petitioner-Firm was unnecessarily dragged to the Court and, that too, knowingly and for no fault on its part. The litigation file that has been produced in the Court reveals that a decision in the context of the order dated 14th March 2024 passed by this Court has been taken at the highest level of the Managing Director of JBVNL.
The Division Bench, comprising Acting Chief Justice Shree Chandrashekhar and Justice Navneet Kumar, held that any unjust retention of money or property of another shall be against the fundamental principles of justice, equity and good conscience. The unauthorized deductions from the running bills of the petitioner-Firm are patently illegal. Such deductions caused loses to the petitioner-Firm which filed its Income Tax returns but was deprived of Rs. 2,90,32,000/- and thereby suffered business or alteast interest losses.
The Court ruled in accordance with clause 10.7.4 of the Jharkhand State Electricity Regulatory Commission, Ranchi (Electricity Supply Code) Regulation, 2015, stating that the interest rate applicable to any excess amount paid by the consumer should match the interest rate charged by the consumer on delayed payment surcharges.
The Court imposed a 5 Lakh penalty on JBVNL and directed the Regulatory Commission, Ranchi (Electricity Supply Code) Regulation, 2015, to enforce this provision, compelling JBVNL to pay interest on the withheld amount of Rs. 2,90,32,000/- as per the specified clause.
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