Jharkhand HC Orders Refund of Unjustified TCS Collection

R.S Coke Industries (Pvt) Ltd Vs Central Coalfields Limited (Jharkhand High Court)

Jharkhand High Court Orders Refund of Unjustified TCS Collection: R.S. Coke Industries (Pvt) Ltd Vs Central Coalfields Limited

In a significant legal development, the Jharkhand High Court has directed Central Coalfields Limited (CCL) to refund Tax Collected at Source (TCS) to R.S. Coke Industries (Pvt) Ltd. This ruling, delivered in a writ petition filed by R.S. Coke Industries, highlights issues of unjustified TCS collection and the judiciary’s role in ensuring compliance with established precedents.

Background of the Case

The writ petition brought forth by R.S. Coke Industries (Pvt) Ltd. sought a judicial directive for the refund of TCS that the company argued was collected unjustifiably. The contention was that the amount collected did not align with the legal provisions governing TCS, thus making the collection improper and subject to refund.

Legal Proceedings

During the hearings, the counsel for R.S. Coke Industries referenced a precedent case: Adhunik Power and Natural Resources Ltd. v. Central Coalfields Ltd. (W.P. (T) No. 2023 of 2021, dated October 5, 2023). This case involved similar issues of TCS collection and set a legal precedent which was directly applicable to the present petition.

Counsel for CCL and the Revenue did not oppose the application of this precedent. The Jharkhand High Court, therefore, found it appropriate to base its judgment on the established precedent. The court acknowledged that the facts of the current case were substantially similar to those in the Adhunik Power case, which had already addressed the issues at hand.

Court’s Decision

The court’s decision was straightforward. It ordered the refund of the TCS collected by CCL from R.S. Coke Industries, aligning with the judgment in the Adhunik Power case.

FULL TEXT OF THE JUDGMENT/ORDER OF JHARKHAND HIGH COURT

In this writ petition, the petitioner has sought for a direction upon the respondents to refund the amount which has been realized from the petitioner in the guise of Tax Collected at Source (TCS).

2. Heard Mr. Nitin Kumar Pasari, learned counsel for the petitioner, Mr. Amit Kumar Das, learned counsel appearing for the CCL and, Mr. Kumar Vaibhav, learned counsel for the Revenue.

3. Learned counsel for the petitioner vehemently contends that the matter is squarely covered by the judgment of this Court in the case of Adhunik Power and Natural Resources Ltd. v. Central Coalfields Ltd. passed in W.P. (T) No. 2023 of 2021 dated 05^th October, 2023, hence, this matter may be disposed of in the light of the said judgment.

4. Learned counsel for the respondents does not have any objection to the aforesaid submission.

5. Considering the facts and circumstances of the case, this writ petition is disposed of in terms of the judgment passed in the case of Adhunik Power and Natural Resources Ltd. v. Central Coalfields Ltd. in W.P. (T) No. 2023 of 2021 disposed of on 05^th October, 2023.