Facts:
a)
The assessee, a steel manufacturing co., entered
into an agreement with German company for transfer of technical know-how in
order to establish an integrated steel plant.
b)
Assessee was required to make payment to
German Co. in three installments after deducting tax at source under Section 195.
c)
Subsequently, since the German company was
not able to fulfil its obligations, it agreed to waive the payment of third
instalment of technical knowhow fee and treated the payment of first and second
instalments as full and final payment against the contract.
d)
The petitioners subsequently filed an
application (after 18 months from the date of waiver of third installment by
German Company) claiming refund of the amount which was deposited as advance
TDS towards the third instalment of the payment which was to be made to the
German company.
