2024 (1) TMI 1477 - SCH - Income Tax

SC upholds illegal TCS collection on coal for power, orders refund with interest; denies 18% interest claim under Section 206C(1A)

Adhunik Power And Natural Resources Ltd. Versus Central Coalfields Ltd & Ors.

The SC dismissed the special leave petition, upholding the HC's decision that the Revenue acted illegally by compelling TCS collection on coal purchases ... Refund realized in the guise of TCS - Petitioner seeking refund of forcefully realised and interest at the rate of 18% per annum - petitioner contended that the benefit of Section 206C(1A) ought to have been granted to the Petitioner once Form 27C has been submitted by the Petitioner and there exists no material to conclude that the declaration forming part of such Form is false - As decided by HC [2023 (10) TMI 334 - JHARKHAND HIGH COURT] root cause of the present Lis lies in the illegality committed by the Revenue in compelling Respondent No. 1 and 2 (CCL) in effecting TCS qua the transactions of purchase of coal which according to the Petitioner was genuinely used in generation of power. Thus, direct that the entire sums of money collected as TCS from the Petitioner along with interest thereon, be refunded by Respondents 3 to 5 (Revenue) to Respondents No. 1 and 2 (CCL) who should thereafter forthwith refund the same to the Petitioner in a time-bound manner HELD THAT:- We are not inclined to interfere with the impugned judgment and hence, the special leave petition is dismissed. The Supreme Court of India, through Hon'ble Justices Sanjiv Khanna and Dipankar Datta, dismissed the special leave petition, stating, 'We are not inclined to interfere with the impugned judgment.' Consequently, all pending applications were disposed of.