Anvil Cables Private Limited Vs State of Jharkhand (Jharkhand High Court)
In the case of M/s. Anvil Cables Private Limited vs. State of Jharkhand, the Jharkhand High Court rendered a judgment concerning the withholding of a significant amount by the Jharkhand Bijli Vitran Nigam Limited (JBVNL) from the bills raised by the petitioner company, Anvil Cables Private Limited (ACPL), for the supply of materials. ACPL had approached the court seeking various reliefs, primarily the issuance of a writ directing JBVNL to either issue a TDS certificate or release the withheld amount of Rs. 2,90,32,000.
The petitioner, ACPL, was engaged in providing engineering, procurement, and construction services to core sector industries in India. It had been awarded contracts by JBVNL for rural electrification works, and deductions of Rs. 2,90,32,000 were made by JBVNL from the running account bills raised by ACPL for the supply of materials. JBVNL claimed that this deduction was made due to an income tax contingency.
ACPL contended that it had filed its income tax returns and paid all income tax liabilities, and the amount withheld by JBVNL was over and above its tax liability. It argued that JBVNL had no authority to withhold the amount and that it was being punished unfairly.
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