2019 (6) TMI 490 - HC - VAT and Sales Tax

Concessional benefit of tax - purchase of High Speed Diesel from suppliers in other States - difficulty in obtaining C forms - CST Act 1956 - HELD THAT - The is covered in favour of the assessee by a decision of this Court in M/S. THE RAMCO CEMENTS LTD. VERSUS THE COMMISSIONER OF COMMERCIAL TAXES THE ADDITIONAL COMMISSIONER (CT) 2018 (10) TMI 1529 - MADRAS HIGH COURT where it was held that The respondents are directed to permit these petitioners to download C forms as has been done in the past for the purpose of purchasing petroleum products against the issuance of C declaration forms. Till such time the order of this court in the case of M/s Ramco Cements Ltd is either stayed or reversed it is incumbent upon all Assessing Authorities within the State of Tamil Nadu to apply the rationale of the decision to all pending assessments - The Petitioner in this Writ Petition has stated on affidavit that it is unable to download the C forms from the websites as the same stand blocked from use. Upon enquiry with the Assessing Authorities they have been informed that the benefit of the decision in M/s Ramco Cements Ltd can be extended only to those dealers that are party to the decision - This stand is unacceptable in so far as the decision of this Court as well as other High Courts one of which has been confirmed by the Supreme Court are decisions in rem applicable to all dealers that seek benefit thereunder of course in accordance with law. Petition allowed.

Summary

Issues: Difficulty in obtaining 'C' forms under the provisions of the Central Sales Tax Act, entitlement to 'C' Forms for purchase of High Speed Diesel from supplies outside Tamil Nadu, pending appeal challenging the order of the learned Single Judge in the case of M/s. Ramco Cements Ltd, application of the rationale of the decision to all pending assessments, inability to download 'C' forms from websites, extension of benefit of the decision to all dealers.

Analysis:
1. The petitioner expressed difficulty in obtaining 'C' forms under the Central Sales Tax Act to avail concessional benefits for purchasing High Speed Diesel from suppliers in other states. The counsel for the petitioner referred to a previous decision in M/s Ramco Cements Ltd. v. The Commissioner of Commercial Taxes, where it was held that the concessional rate is available to dealers purchasing High Speed Diesel from neighboring states through inter-state sales. Similar decisions by other courts were also cited, supporting the assessee's position.

2. The respondent did not dispute the above position but mentioned that the State had filed an appeal challenging the order in the M/s. Ramco Cements Ltd case, which was pending before the Division Bench. The court emphasized that until the order in the Ramco Cements Ltd case is stayed or reversed, all Assessing Authorities in Tamil Nadu must apply the rationale of the decision to all pending assessments. The petitioner highlighted issues with downloading 'C' forms from websites and the authorities restricting the benefit of the decision only to parties involved in the specific case, which was deemed unacceptable.

3. Considering the circumstances and the importance of applying the decision uniformly, the court allowed the Writ Petition. It directed the department to take necessary action promptly, emphasizing that decisions by the court and other High Courts, including those confirmed by the Supreme Court, are applicable to all dealers seeking benefits, subject to legal provisions. The judgment concluded by stating that no costs were imposed, and the connected Miscellaneous petition was closed.