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2019 (5) TMI 395 - HC - GSTIssuance and usage of 'C' forms post GST - Vires of Circular dated 17.08.2017 (Annexure-1) issued by the State Government - levy of GST on persons who are dealing with HSD - HELD THAT - The circular dated 17th August, 2017, which is partially quashed by Punjab and Haryana High Court and has been approved by the Hon ble Supreme Court. Other High Courts also have taken a similar view - In that view of the matter, it will not be appropriate to now enforce the circular dated 17.8.2017 and the circular of 1st November, 2018 will prevail along with the judgments which are referred herein above, the authorities are bound to implement all decisions referred to above and we are approving the ratio laid bound those decisions and we direct the State Government to follow and act in accordance with the ratio of those decisions. Petition disposed off.
Issues:
Challenge to circular dated 17.08.2017 issued by State Government directing payment of GST by persons dealing with HSD. Interpretation of Section 8 of CST Act, Rule 12 of CST (R&T) Rules, and issuance of Form C. Compliance with judgments of different High Courts regarding issuance of Form C for inter-state purchases post-GST implementation. Analysis: The petitioner challenged the circular dated 17.08.2017 issued by the State Government, directing persons dealing with High-Speed Diesel (HSD) to pay GST. The petitioner relied on a decision by the Punjab and Haryana High Court in the case of Carpo Power Limited v. State of Haryana and Ors., which highlighted the interpretation of Section 8 of the CST Act and Rule 12 of CST (R&T) Rules. The High Court held that the purchase of goods for resale, manufacturing, telecommunications, mining, or power generation qualifies for registration under the CST Act, irrespective of specific goods. It was emphasized that the registration certificate under the CST Act had not been canceled, as required by Section 7(4) of the Act. The judgment of the Punjab and Haryana High Court was upheld by the Supreme Court and subsequently clarified by the Central Government through a letter dated 01.11.2018. The circular issued by the State Government was challenged based on non-compliance with Section 18 of the CGST Act and decisions of various High Courts. The High Court referred to judgments from different High Courts, including Capro Power Limited v. State of Haryana, Shree Raipur Cement Plant v. State of Chhattisgarh, Hindustan Zinc Limited v. State of Rajasthan, The Ramco Cements Ltd. v. Commissioner of Commercial Taxes, and Star Cement Meghalaya v. State of Assam, all emphasizing the entitlement to Form C for inter-state purchases post-GST implementation. The High Court concluded that the circular dated 17.08.2017 was partially quashed by the Punjab and Haryana High Court and approved by the Supreme Court, aligning with decisions from other High Courts. The circular of 1st November 2018 was deemed prevailing, along with the judgments referred to. The State Government was directed to follow and act in accordance with the decisions of the High Courts. The writ petition was disposed of with the direction for compliance with the judgments and the circular of 1st November 2018. In summary, the judgment addressed the challenge to the circular directing GST payment for HSD, interpreted relevant provisions of the CST Act, and emphasized compliance with judgments from various High Courts regarding the issuance of Form C for inter-state purchases post-GST implementation. The High Court directed the State Government to adhere to the decisions of the High Courts and the circular of 1st November 2018.
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