JUDGMENT : Aniruddha Bose, J. This batch of writ petitions involve legality of certain issues arising out of the provisions of Section 206C of the Income Tax Act, 1961. The points of law involved in all these proceedings are near identical and the facts are also similar. As such, there was analogous hearing of these proceedings. Detailed argument was advanced before us only on two writ petitions, which have been registered as W.P.(C) No.46 of 2018 and W.P.(T) No.5203 of 2018. Learned Advocates appearing for the other writ petitioners have adopted the arguments advanced by Mr. Debashish Bharuka in W.P.(C) No.46 of 2018 and Mr. Sumeet Gadodia in W.P.(T) No.5203 of 2018. We shall be primarily dealing with the facts of W.P.(C) No.46 of 2018 in this judgment for giving our finding on the points involved in this batch of writ petitions as we are apprised by learned counsel appearing for the other writ petitioners that the facts of their cases are similar. The provisions of Section 206 C of the Act requires the sellers of certain specified goods to collect from the buyers stipulated percentage of the sale price over and above the price of such goods. The point of time such sum is to be collected has been specified in the said provision, which is reproduced later in this paragraph. This additional amount constitutes in substance collection of income tax at source and the seller is required to deposit the said additional percentage with the income tax authorities. We quote below the provisions of Sub-section 1 and (1A) of the Section 206C of the Act as interpretation of these two Sub-sections is necessary for the purpose of effective adjudication of these writ petitions. The said Sub-sections, as it stands as amended by the Finance Act, 2017 stipulate:- “[(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 specified in column (2) of the Table below, a sum equal to the percentage specified in the corresponding entry in column (3) of the said Table, of such amount as income-tax. [Table Sl. [Table Sl. No. Nature of goods Percentage (i) Alcoholic liquor for human consumption One per cent (ii) Tendu leaves Five per cent (iii) Timber obtained under a forest lease Two and one-half per cent (iv) Timber obtained by any mode other than Under a forest lease Two and one-half per cent (v) Any other forest produce not being timber or tendu leaves Two and one-half per cent (vi) Scrap One per cent (vii) Minerals, being coal or lignite or iron ore One per cent: [Provided that every person, being a seller shall at the time, during the period beginning on the 1st day of June, 2003 and ending on the day immediately preceding the date on which the Taxation Laws (Amendment) Act, 2003 comes into force, of debiting of the amount payable by the buyer to the account of the buyer or 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 specified in column (2) of the Table as it stood immediately before the 1st day of June, 2003, a sum equal to the percentage, specified in the corresponding entry in column (3) of the said Table, of such amount as income-tax in accordance with the provisions of this section as they stood immediately before the 1st day of June, 2003.] [(1A) Notwithstanding anything contained in sub-section (1), no collection of tax shall be made in the case of a buyer, who is resident in India, if such buyer furnishes to the person responsible for collecting tax, a declaration in writing in duplicate in the prescribed form and verified in the prescribed manner to the effect that the goods referred to in column (2) of the aforesaid Table are to be utilized for the purposes of manufacturing, processing or producing articles or things [or for the purposes of generation of power] and not for trading purposes.” 2. The writ petitioners are all bulk purchasers of coal from Central Coalfields Limited (C.C.L.). Majority of them make such purchase through an arrangement which is commonly known as Fuel Supply Agreement or through e-auction. These are the current norms for direct purchase of coal from the respective coal companies. 3. The writ petitioners are all bulk purchasers of coal from Central Coalfields Limited (C.C.L.). Majority of them make such purchase through an arrangement which is commonly known as Fuel Supply Agreement or through e-auction. These are the current norms for direct purchase of coal from the respective coal companies. 3. But the manner of such purchase is of limited significance in these proceedings as the disputes forming the subject of these cases relate to certain directives issued by the C.C.L. requiring deposit of additional one per cent as tax collection at source from the bulk purchasers of coal. Complaint of the writ petitioners is that C.C.L. is ignoring the provisions of Sub-section (1A) of Section 206C and Rules made in that regard in making such demand. The writ petitioner in W.P.(C) No.46 of 2018 claims to run a manufacturing unit of iron and steel products for which coal is a major raw material. It purchases coal through supply agreements. The writ petitioner in W.P.(T) No.5203 of 2018 is also engaged in the business of manufacture of steel and purchases coal from time to time from C.C.L. 4. Provision for exemption given to the buyers of coal from being subjected to such collection of tax at source has been incorporated in Rule 37C of the Income Tax Rules, 1962, framed in terms of Section 206C of the Act. This has been provided in Part VIA, of the said Rules. Rule 37C stipulates:- “[37C. Declaration by a buyer for no collection of tax at source u/s 206C(1A) (1) A declaration under sub-section (1A) of section 206C to the effect that any of the goods referred to in the Table in sub-section (1) of that section are to be utilized for the purposes of manufacturing, processing or producing articles or things and not for trading purposes shall be in Form No.27C and shall be verified in the manner indicated therein. (2) The declaration referred to in sub-rule (1) shall be furnished in duplicate to the person responsible for collecting tax. (3) The person referred to in sub-rule (2) shall deliver or cause to be delivered to the Chief Commissioner or Commissioner, one copy of the declaration referred to in sub-rule (1) on or before the seventh day of the month next following the month in which the declaration is furnished to him.” 5. (3) The person referred to in sub-rule (2) shall deliver or cause to be delivered to the Chief Commissioner or Commissioner, one copy of the declaration referred to in sub-rule (1) on or before the seventh day of the month next following the month in which the declaration is furnished to him.” 5. The Form specified in which the declaration is to be given under the aforesaid Rule is Form 27C and the said Form has been made part of the said Rules. The Form in which declaration is to be made come in two parts, as specified in Rule 37C. The first part (Part I) requires a declaration to be made by the buyer whereas the second part (Part II) is meant for the seller. We reproduce below the said two part Form for proper appreciation of the content and purport thereof. Coal was brought within the range of specified goods in respect of which this statutory arrangement is to be followed on 1st July, 2012 by Finance Act, 2012. The disputes involved in this batch of writ petitions arose after that date. FORM No.27C [See rule 37C] Declaration under sub-section (1A) of section 206C of the Income-tax Act, 1961 to be made by a buyer for obtaining goods without collection of tax PART I INFORMATION: BUYER 1. Name of Buyer (applicant) 2. PAN of the Buyer 3.Flat/Door/Block No. 4. Name of Premises 5.*** Status (choose among 1 to 6) 8. Assessed in which Ward/Circle 6. Road/Street/Lane 7. Area/Locality 9. AO Code (under whom assessed last time) 10. Town/City/District 11. State Area Code AO Type Range Code AO No. 12. PIN 13. Last Assessment year in which assessed 14. Email 15. Telephone No.(with STD Code) and Mobile No. 16. Present Ward/Circle 17. Present AO Code (if not same as above) 18. Jurisdictional Chief Commissioner of Income-tax or Commissioner of Income-tax (if not assessed to income-tax earlier) Area Code AO Type Range Code AO No. INFORMATION :GOODS 19. Nature of Business/Occupation 20. Purpose of utilization of goods (tick the relevant box) Manufacturing, processing, production of articles or things 21. Nature of goods [referred to in the table in sub-section (1) of section 206C] Generation of power ………………………….. ** Signature of the Declarant Declaration/Verification *I/We……………………………. do hereby declare that to the best of *my/our knowledge and belief what is stated above is correct, complete and is truly stated. Nature of goods [referred to in the table in sub-section (1) of section 206C] Generation of power ………………………….. ** Signature of the Declarant Declaration/Verification *I/We……………………………. do hereby declare that to the best of *my/our knowledge and belief what is stated above is correct, complete and is truly stated. *I/We declare that the goods referred to in Column No.21 shall not be used for trading purposes. *I/We also, declare that *I/We*am/are resident in India within the meaning of Section 6 of the Income Tax Act, 1961. Place………………… Date………………..... ………………………….. Signature of the Declarant PART II [For use by the person to whom the declaration is furnished] 1. Name of Seller 2. PAN of the Seller 3. Complete address 4. TAN of the Seller 5. Email 6. Telephone No. (with STD Code) and Mobile No. 8. Date on which declaration is furnished (dd/mm/yyyy 7.*** Status (choose amont 1 to 6) 9. Date of debiting of the amount payable by the buyer to the account of the buyer or receipt of the amount payable from the buyer in cash or by issue of a cheque or draft or by any other mode (dd/mm/yyyy) Substituted by the Income-tax (Second Amendment) Rules, 2013 w.e.f. 19.2.2013. It was inserted by the Income-tax (Fourth Amendment) Rules, 1988, w.e.f. 1-6-1988 and substituted by the Income-tax (Twenty-second Amendment), Rules, 2003, w.e.f. 30-9-2003. Declaration u/s 206C(1A) Forwarded to the Chief Commissioner or Commissioner of Income tax …………………………………… Place………………………… Date…………………………. ………………………………… Signature of the person responsible for collecting tax at the time of the sale of the goods referred to in column no.21 of Part 1 Notes: 1. The declaration should be furnished in duplicate. 2. *Delete whichever is not applicable. 3. **Indicate the capacity in which the declaration is furnished on behalf of a HUF, AOP, firm, company, etc. 4. ***1=Company; 2=Firm; 3=AOP/BOI; 4=HUF; 5 = individual; 6 others 5. Before signing the verification, the declarant should satisfy himself that the information furnished in the declaration is true, correct and complete in all respects. 2. *Delete whichever is not applicable. 3. **Indicate the capacity in which the declaration is furnished on behalf of a HUF, AOP, firm, company, etc. 4. ***1=Company; 2=Firm; 3=AOP/BOI; 4=HUF; 5 = individual; 6 others 5. Before signing the verification, the declarant should satisfy himself that the information furnished in the declaration is true, correct and complete in all respects. Any person making a false statement in the declaration shall be liable to prosecution under Section 277 of the Income Tax Act, 1961 and on conviction be punishable- (i) In a case where tax sought to be evaded exceeds twenty-five lakh rupees, with rigorous imprisonment which shall not be less than six months but which may extend to seven years and with fine; (ii) In any other case, with rigorous imprisonment which shall not be less than three months but which may extend to two years and with fine. 6. Both the writ petitioners claim to be end users of coal for their own manufacturing purposes. They specifically deny having been involved in any trading activities of coal. In fact, it has been submitted on behalf of all the writ petitioners that they are all end-users of coal they purchase from C.C.L. and that they do not indulge in trading of coal. The dispute forming subject matter of all these writ petitions originated from two communications made by the C.C.L. to their buyers dated 2nd November, 2017 and 14th December, 2017 respectively. The communication of 2nd November, 2017 reads:- Notice CCL is in receipt of a letter no. F.No.PCIT/Ran/Tech/TCS-Misc/2017-18/1813 dated 31.10.2017 from Pr. C.I.T. Ranchi, Income Tax Department, mentioning following- Quote “Every person being a seller shall, at the time of debiting of the amount payable by the buyer to the account of 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 specified in column (2) of the Table below, a sum equal to the percentage, specified in the corresponding entry in column (3) of the said Table of such amount as income tax”- Sl. No. Nature of Goods Percentage 1. No. Nature of Goods Percentage 1. Minerals, being coal or lignite or iron ore 1% Unquote Accordingly CCL has been advised the following in the said letter- Quote “You are therefore advised as a matter of abundant precaution to either satisfy yourself that form 27C filed by the assesse is correct in letter and in spirit. Or, if you are not so satisfied, it is incumbent upon you to collect TCS at the rates prescribed u/s 206C of the I.T. Act, 1961”. Unquote In the light of above advice of Pr. CIT, Income Tax, Ranchi, and since it is not possible for CCL to get satisfied with the Form 27C submitted by customers, it is informed to all concern that henceforth Delivery Order of coal will be issued to the customer only after deposit of TCS @ 1% of the Value by them. In case the customer does not deposit the TCS, it will be deducted from their deposited amount and quantity will be reduced accordingly. This is implemented with immediate effect. 7. The notice of 14th December, 2017 reads:- Notice “A notice of demand u/s 156 for an amount of Rs.122.39 crs along with the order u/s 206C of the I.T. Act, 1961 both dated 15.11.2017 was issued by DCIT, TDS Circle, Ranchi. This demand notice of Rs.122.36 crs was of TCS with interest against all those customers of CSC, M&S, CCL who have submitted Form 27 C to CCL for onwards submission to Income Tax Department, in place of depositing TCS since 2012-13 to July 2017. Against this notice of Demand, an appeal was filed by CCL before CIT (A) on 18.11.2017 and simultaneously a petition for stay of demand was also filed before DCIT, TDS Circle, Ranchi on 20.11.17 which was rejected by him vide letter no.961 dated 23/27.11.2017 and it was advised by CCI to CCL to deposit the same amount after collecting from the customers by 30th Dec’ 2017. Therefore, all such customers are advised to deposit the amount of TCS with interest, as indicated the enclosed annexure, through their registered account into designated account of CCL in PNB, S.N. Ganguly Road Branch, Ranchi within fortnight, i.e. on or before 28.12.2017 as per the order of Income Tax Department. Therefore, all such customers are advised to deposit the amount of TCS with interest, as indicated the enclosed annexure, through their registered account into designated account of CCL in PNB, S.N. Ganguly Road Branch, Ranchi within fortnight, i.e. on or before 28.12.2017 as per the order of Income Tax Department. Otherwise it will be construed as concurrence for recovering the amount from the balance available amount with CCL.” Both these notices have been made annexures at pages 55 and 56 of W.P.(C) No.46 of 2018. These have been issued as circular notices and not individually addressed to any of the buyers of coal. The officers of C.C.L. have been asked to upload the notices on the website and also put them up in the notice boards. 8. As would be evident from the contents of these two notices, the C.C.L. in substance seeks to ensure deposit of one percent of price of coal as TCS from individual buyers for remitting the said amount to the income tax authorities. Delivery of coal has been made subject to this condition. Alternatively, it has been stipulated that the TCS amount would be deducted from their deposited amount and quantity of coal to be supplied would be reduced accordingly. It is submission of the writ petitioners that such measures in effect would override the provisions contained in Sub-section (1A) of Section 206C of the Act read with Rule 37C, which we have quoted above. The communication dated 14th December, 2017 also requires the individual buyers of coal to deposit the TCS amount for the entire period between 2012-13 and July, 2017. 9. When these writ petitions were originally instituted, C.C.L., along with some of its senior officers were impleaded as party-respondents. By an order passed on 9th October, 2018, while dealing with seven writ petitions of similar nature, this Court had opined that income tax authorities are necessary parties to these proceedings and we also directed the Commissioner of Income Tax, TDS Circle to be added as party-respondent to those writ petitions. The said direction was complied with by the writ petitioners. Subsequently, Mr. Roshan, learned counsel for the income tax authorities has appeared in these matters and assisted us in adjudicating the writ petitions. 10. Mr. The said direction was complied with by the writ petitioners. Subsequently, Mr. Roshan, learned counsel for the income tax authorities has appeared in these matters and assisted us in adjudicating the writ petitions. 10. Mr. Mehta, learned counsel for C.C.L. submits that majority of the writ petitioners are not the end users of coal purchased from them and in some cases the First Part of the declaration in Form 27C had also not been furnished by the purchasers of coal. As a consequence thereof, C.C.L. was issued notice by the income tax authorities. According to Mr. Mehta such notice was camouflaged as advice by the income tax authority. A copy of this notice dated 31st October, 2017 has been disclosed in the counter affidavit on behalf of the C.C.L. which has been filed today in Court in W.P.(C) No.46 of 2018. This affidavit was affirmed on 29th November, 2018. We take on record this affidavit. The said notice issued by Principal Commissioner of Income Tax, Ranchi reads:- Sir, Sub: Collection of Tax at source (TCS) u/s 206 of Income tax Act, 1961-regarding. Please refer to the above captioned subject. With reference to the above, your attention is invited to Section 206 C of the Income Tax Act, 1961, relating to collection of tax at source which reads as under :- “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 specified in column (2) of the Table below, a sum equal to the percentage, specified in the corresponding entry in column (3) of the said Table, of such amount as income-tax”:- Sl. No. Nature of Goods Percentage 1 Minerals, being coal or lignite or iron ore One per cent In light of the above section your organization is required to collect tax at source @ 1% on the sale of coal. During the course of Survey u/s 133A conducted by the Department in the case of M/s Gautam Coal Carriers Private Limited, Ashok Nagar, Ranchi it is found that the said company is purchasing coal from your organization without having TCS made on it. During the course of Survey u/s 133A conducted by the Department in the case of M/s Gautam Coal Carriers Private Limited, Ashok Nagar, Ranchi it is found that the said company is purchasing coal from your organization without having TCS made on it. The assessee has furnished Form No.27C as prescribed in the Income-tax Rules made by buyer for obtaining goods without collection of tax. During the course of survey it is found that the said company is not utilizing the coal purchased for self consumption as an end user as provided in the Act. The Company has the capacity to process only about 0.05% of the total M.T. coal sold by your company to above concern. In this regard the Investigation by the department has revealed the following facts:- (i) The Assessee has admitted, under oath, that “all the audited accounts submitted by me or Income Tax Returns submitted on the basis of those ‘audited accounts’ were imaginary”. (ii) The assessee has the capacity to process 0.05% of the raw coal purchased by your Company. (iii) Most of the sellers to whom the SSF is alleged to have been sold are non existent. (iv) The Vehicle Registration numbers by which SSF is alleged to have been sold are those of two wheelers/passenger vehicles. (v) The assessee has not been able to prove that the coal sold by your company has actually entered its factory premises. It is incumbent upon a Nawratna company like yours to properly verify the assessee’s processing capacity before supplying confessional coal by you. However, prima facie, it appears that due diligence has not been done by your company. The Hon’ble Supreme Court of India, in the case of Sumati Dayal: (214 ITR 801) has noted the existence of “NOTORIOUS FACTS” in public and economic affairs. In Mc. Dowell’s case, the Apex Court has held that public servants are expected not to wear blinkers while performing their official duties. On the contrary they are expected to pierce the corporate veil to unearth the real behind the apparent. Your attention is also kindly drawn to the provisions of section 278 of the I.T. Act, 1961 which prescribes Prosecution of the Principal Officers of the Company for abetment of false statements, declaration, returns etc. On the contrary they are expected to pierce the corporate veil to unearth the real behind the apparent. Your attention is also kindly drawn to the provisions of section 278 of the I.T. Act, 1961 which prescribes Prosecution of the Principal Officers of the Company for abetment of false statements, declaration, returns etc. You are therefore advised, as a matter of abundant precaution, to either satisfy yourself that form 27C filed by the assessee is correct in letter and in spirit Or, if you are not so satisfied, it is incumbent upon you to collect TCS at the rates prescribed u/s 206C of the I.T. Act, 1961. 11. The notice refers to a particular purchaser of coal who according to the income tax authorities, have not been utilizing the same for self-consumption though it had furnished Form 27 C. Mr. Mehta’s submission is that it is not possible for his client to factually ascertain the manner in which coal purchased from his clients is being utilized in each and every case. He argues that to prevent breach of the provisions of the Income Tax Act, 1961, the impugned notices had to be issued to the coal purchasers. The notice of 31st October, 2017 was preceded by another communication from the income tax authority issued on 26th October, 2017, which is Annexure-B to the said counter affidavit. This communication addressed to the coal company records:- Kindly refer to the above. Kindly find enclosed herewith the letter of the Joint Commissioner of Income Tax, TDS, Range-2, Ranchi whereby you were directed to collect TCS on sale of coal in the light of surveys conducted in the premises of Coal companies. The said letter was addressed to the Principal Officer and the same was not received by your company. The Principal Officer refers to the Chairman Cum Managing Director. It is learnt that TCS is not being collected and is still being sold through Form 27C. During the course of Survey proceedings, it was established that there is fraudulent misuse of Form 27C by the various Coal trading companies who are purchasing coal in the name of self consumption but sells the same in the open market. Hence, you are directed to collect TCS on sell of entire coal invariably from all the coal purchasers so that fraudulent use of Form 27C can be stopped. (quoted verbatim). 12. Both Mr. Bharuka and Mr. Hence, you are directed to collect TCS on sell of entire coal invariably from all the coal purchasers so that fraudulent use of Form 27C can be stopped. (quoted verbatim). 12. Both Mr. Bharuka and Mr. Gadodia appearing for the writ petitioners have submitted that there cannot be a blanket super session of the provisions of Sub-section (1A) of Section 206C read with Rule 37C of the 1961 Act and Rules made there under on suspicion that individual buyers of coal would not be utilizing the purchased coal for self-use. Our attention has also been drawn to the last paragraph of the communication of 26th October, 2017 emanating from the income tax authorities. In that communication, in substance, a duty has been cast on the seller of coal to either satisfy themselves that Form 27C filed by the assessee is correct in letter and spirit and if they are not satisfied then TCS at the stipulated rate has to be collected. 13. In course of hearing of these writ petitions, we enquired from Mr. Roshan as to whether in a situation where the buyer of specified goods was giving declaration in terms of Rule 37C, the selling company could insist on one per cent additional deposit as TCS without coming to any finding as to whether there was any misuse of coal obtained from the coal company or not. He has analysed different provisions of the statute before us and his submission is that in the absence of any form of material which disclosed use of coal was not for self-consumption, a blanket order requiring deposit of one per cent of the price of coal as TCS would not be as per the statutory provisions in relation to goods specified in the Table to Section 206C (1) of the Act, if there was otherwise compliance of the provisions of Rule 37C. 14. Mr. Gadodia as well as Mr. Bharuka have also argued that so far as the writ petitioners covered by Fuel Supply Agreements are concerned, there is specific stipulation in the standard form contract that buyers of coal would themselves have to consume the coal purchased and this factor requires monitoring of user pattern by the concerned coal company in respect of coal supplied to individual consumers under the Supply Agreement. No such provision has been shown so far as buyers of coal not covered by Fuel Supply Agreements are concerned. But in these writ petitions we are not to adjudicate individual cases in respect of which there has been breach of end use requirement specified in the 1961 Act. We are examining in these proceedings legality of the two communications issued by C.C.L., which in our view contain a blanket directive for deposit or collection of TCS without any reference to the relaxation provisions to such requirements contained in Section 206C(1A) of the Act, read with Rule 37 C thereof. 15. Having gone through various provisions of the Income Tax Act and the Rules framed there under, in our opinion, such blanket directive on all coal purchasers would be impermissible under the Income Tax Act itself. The Act and the Rules, the provisions which we have quoted above specifies the situations under which the TCS requirements can be relaxed. The coal company, being C.C.L. in this case, has not been empowered under the Act to ignore the stipulations specified in Section 206C (1A) of the Act, provided stipulations of Rule 37C stand complied with, on the allegations of misdeclaration by some of the purchasers on end-use. It would be open to the tax authorities to deal with individual cases of misdeclaration as per law. But in our opinion, C.C.L. cannot insist on deposit of the specified per cent age under Section 206C (1) of the Act even in cases where there is compliance of the provisions of Section 206C (1A) of the Act. The prescription of the aforesaid provision is that on fulfilment of the conditions stipulated therein, no collection in terms of Sub-section (1) of Section 206C is to be made. The two notices issued by the C.C.L. impugned in these writ petitions requiring all bulk coal purchasers for self-use to make TCS deposit irrespective of the fact as to whether they furnish the declaration or not run contrary to the provisions of Section 206C (1A) of the Act. We cannot accept C.C.L’s stand that it has issued the impugned notices because of the direction of income tax authorities because we find the action of C.C.L. per se to be contrary to law. We cannot accept C.C.L’s stand that it has issued the impugned notices because of the direction of income tax authorities because we find the action of C.C.L. per se to be contrary to law. As C.C.L. has not questioned the legality of the directions of advise of the income tax authority, we are not entering into that dispute while adjudicating these writ petitions. 16. We are of the opinion that the two notices issued by the Central Coalfields Limited, the legality of which are under challenge before us cannot be sustained, if these notices are made to apply in respect of entire set of purchasers of coal without any verification as regards their end use pattern of consumption. In fact, the letter of Income Tax authorities dated 31st October, 2017, which we have reproduced in the earlier part of this judgment, contains an advise in that manner only in the last paragraph thereof. 17. Mr. Mehta has argued that his client, C.C.L. does not have adequate mechanism to monitor the manner in which the coal buyers claiming the benefit under Rule 37C are actually consuming coal and whether they are selling the coal in open market or not. But this is an administrative problem which is being highlighted by Mr. Mehta. This problem cannot permit the seller to override the provisions of Section 206C (1A) of the Act, where the conditions for obtaining relaxation from the TCS requirement have been spelt out in detail. 18. Mr. Gadodia appearing for some of the writ petitioners has relied on a decision of the Hon’ble Supreme Court in the case of State of Madras Versus Radio and Electricals Ltd. ( AIR 1967 SC 234 ) to contend that seller has no obligation to verify the end consumption of coal in the event the declarations specified in the statute are furnished. But in this set of writ petitions, we are not required to give a finding on that point. That question does not require to be answered in this judgment as the scope of these proceedings remain confined to testing legality of the said two notices. Arguments have been advanced on behalf of the writ petitioners for quashing the two notices issued by C.C.L. bearing nos.CCL/M&S/CSC/2017-18/TCS/13227-34 dated 2nd November, 2017 and CCL/M&S/CSC/2017-18/15377-80 dated 14th December, 2017. That question does not require to be answered in this judgment as the scope of these proceedings remain confined to testing legality of the said two notices. Arguments have been advanced on behalf of the writ petitioners for quashing the two notices issued by C.C.L. bearing nos.CCL/M&S/CSC/2017-18/TCS/13227-34 dated 2nd November, 2017 and CCL/M&S/CSC/2017-18/15377-80 dated 14th December, 2017. Some form of verification may be necessary to ascertain as to whether the buyers were making misdeclarations on the aspect of end-use or not. But the provision of Section 206C(1A) of the Act does not permit a seller to deny the benefits contemplated in that provision to individual buyers of specified commodities, provided the latter furnish declarations specified in the statute. There has to be specific finding of misdeclaration to deny purchasers of coal the benefit or relaxation contemplated in Section 206C(1A) of the Act. Such denial, in any event, cannot be on mere suspicion. 19. We accordingly hold, while disposing of these writ petitions:- (a) The two notices issued by the C.C.L. bearing no.CCL/M&S/CSC/2017-18/TCS/13227-34 dated 2nd November, 2017 and CCL/M&S/CSC/2017-18/15377-80 dated 14th December, 2017would not ipso facto be applicable to all the writ petitioners in the event they comply with the provisions of Sub-section (1A) of Section 206 C of the Income Tax Act, 1961 read with Rule 37C thereof by furnishing the declaration in Form 27C. In such a situation, the buyers shall be entitled to the benefits contemplated in the provision of Section 206C (1A) of the Act. (b) In the event such forms are not furnished as per the statutory requirement, it shall be open to C.C.L. to insist on TCS as per the statutory provisions. (c) If C.C.L. has any doubt that the coal is not being used for self-consumption by any of the buyers claiming relaxation in terms of Section 206C (1A) of the Act, it would be open to C.C.L. to take up the matter with individual buyers and insist on TCS if circumstances justify such insistence. But to deny the benefits contemplated in Section 206C(1A) of the Act, so far as the individual writ petitioners are concerned, it would have to be examined first if as buyers or any of them have furnished declarations or verifications under Form 27C or not. But to deny the benefits contemplated in Section 206C(1A) of the Act, so far as the individual writ petitioners are concerned, it would have to be examined first if as buyers or any of them have furnished declarations or verifications under Form 27C or not. If declarations are filed and there is no material to conclude that such declaration is false, then the provisions of Section 206C (1A) would be applicable. On the other hand, if C.C.L. finds that any misdeclaration is made by any individual buyer, then it shall be open to them to take such steps as may be permissible in law. (d) So far as the sum collected in pursuance of the two notices issued by the Central Coalfields Limited as TCS is concerned, in the event it is found that in individual cases the buyers were not required to deposit such sum it shall be adjusted by the Income Tax authorities against future payment of income tax by such buyers. If tax has been deposited under the TCS scheme by a coal buyer who otherwise does not fulfil the requirement of waiver or relaxation from the TCS scheme, then the amount so deposited shall be dealt with as payment of income tax in accordance with law. In those cases, the coal company shall issue TCS certificate in terms of the provisions of Income Tax Act. Such certificates shall be issued on application made by the individual buyers within a period of eight weeks from the date of making of the application. (e) If there is finding to the effect that there has been misdeclaration by any of the writ petitioners, then it shall be open to the Income Tax authorities as also C.C.L. to take steps against them as may be permissible under the law. It shall be open to Income Tax authorities as also C.C.L. to make enquiries in respect of individual writ petitioners to ascertain if there has been any wrong or misdeclartion on their part. 20. All the writ petitions stand disposed of in the above terms. There shall be no order as to costs.