1998 (3) TMI 105

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....me-tax at source and consequently refund the tax collected under section 206C of the Income-tax Act. On behalf of the petitioners it is contended that the Division Bench of this court in Gian Chand Ashok Kumar and Co. v. Union of India [1991] 187 ITR 188, declared that L-13 licensees fell within the purview of section 44AC, therefore, the tax at source in so far as the purchases made by them were concerned, should not be deducted and that judgment applies on all fours to the present petitioners. In opposition to this, the learned Advocate-General has urged that the aforesaid judgment of the Division Bench of this court has no relevance since section 44AC itself was deleted and as the Supreme Court in Union of India v. A. Sanyasi Rao [....

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.... concluded that the petitioners came within the purview of the proviso and, therefore, the provisions of sub-section (1) of section 44AC do not apply to them. Section 44AC was deleted by the Finance Act, 1992, with effect from April 1, 1993. The deletion of section 44AC had resulted in certain minor consequential amendments to section 206C, which after omitting the immaterial parts reads as under : "206C. (1) Every person, being a seller shall, at the time of debiting of the amount payable by the buyer to the account of the buyer or at the time of receipt of such amount from the said buyer in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, collect from the buyer of any goods of the nature specifie....

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....on and paid under sub-section (3) shall be deemed as payment of tax on behalf of the person from whom the amount has been collected and credit shall be given to him for the amount so collected on the production of the certificate furnished under sub-section (5) in the assessment made under this Act for the assessment year for which such income is assessable... Explanation.---For the purposes of this section,--- (a) 'buyer' means a person who obtains in any sale, by way of auction, tender or any other mode, goods of the nature specified in the Table in sub-section (1) or the right to receive any such goods but does not include,--- (i) a public sector company, (ii) a buyer in the further sale of such goods obtained in pursuance of....