HINDALCO INDUSTRIES LIMITED Vs. CENTRAL COALFIELDS LIMITED

JUDGEMENT

(1.) In this writ petition, the petitioner has challenged legality of certain notices issued by the Central Coalfields Limited seeking to implement the provisions of Section 206C of the Income Tax Act, 1961 read with Rule 37C of the Income Tax Rules, 1962. The subject of these notices relates to collection of tax at source. The writ petitioner is a bulk purchaser of coal and claims to be the end user of such coal itself for its own manufacturing unit.

(2.) Under the provisions of Sub-section (1A) of Section 206C of the 1961 Act, a consumer of coal for self-use is exempted from the requirement of making payment of tax at source on compliance of certain conditions. In a set of notices/circulars dated 2nd November, 2017, 14th December, 2017 and 3rd January, 2018, copies of which have been made annexures to the writ petition, the Central Coalfields Limited, who under normal circumstances would be the collector of tax at source, have made it mandatory for all consumers to deposit tax at source and sought recovery of earlier deposit which remained uncollected. The writ petitioner seeks quashing of this set of notices. Though several prayers have been made in the writ petition, learned counsel for the petitioner has confined his prayer in course of hearing for invalidation of these notices or circulars so far their application on the writ petitioner is concerned.

(3.) This Court had the occasion to examine this very question in W.P.(C) No.46 of 2018 (M/s. Atibir Industries Co. Ltd. Vs. The Central Coalfields Limited and others) decided on 3rd December, 2018. Along with that writ petition, several other writ petitions raising near identical issues were also decided. In that judgment, this Court had held and directed:-