2019 (6) TMI 495 - HC - VAT and Sales Tax

Concessional rate of tax - purchase of High Speed Diesel Oil for use in generation and distribution of electricity and other forms of power - unable to download the 'C' forms - HELD THAT - In the M/S. THE RAMCO CEMENTS LTD. VERSUS THE COMMISSIONER OF COMMERCIAL TAXES, THE ADDITIONAL COMMISSIONER (CT) 2018 (10) TMI 1529 - MADRAS HIGH COURT matter, this Court allowed the writ petitions filed by the assessees and directed the Revenue to permit the petitioners assessees to download 'C' forms. There is no dispute or disagreement that the instant writ petition falls clearly within the four corners of Ramco Cements case. In the light of the trajectory, which this matter has taken at the admission stage, it follows as a natural sequitur that the instant writ petition stands allowed - petition allowed.

Summary

Issues:
1. Entitlement to purchase High Speed Diesel Oil at concessional tax rate post-GST implementation.
2. Access to download 'C' forms for inter-state purchases.
3. Application of legal position established in previous judgments.

Analysis:
1. The main issue in the judgment revolves around the petitioner's entitlement to purchase High Speed Diesel Oil at a concessional tax rate post the implementation of Goods and Services Tax (GST). The petitioner had been purchasing the oil at a 2% tax rate using 'C' forms, but faced challenges in accessing these forms after the introduction of GST. The Revenue Department blocked access to 'C' forms for such purchases, citing ineligibility post-GST implementation. The legal position on this matter was previously considered in the 'Ramco Cements matter', where a judgment allowed assessees to download 'C' forms for such purchases.

2. The judgment refers to a series of previous legal decisions, including the 'Ramco Cements matter' and a subsequent order in 'Southern Cotspinners Coimabatore Private Limited case'. These judgments established the principle that until the order in the 'Ramco Cements matter' is stayed or reversed, Assessing Authorities in Tamil Nadu must apply the same rationale to pending assessments. The court emphasized that decisions like the one in 'Ramco Cements matter' are applicable to all dealers seeking benefits, not just those directly involved in the specific case.

3. The court, after considering the legal trajectory of the case and the precedents set by previous judgments, allowed the instant writ petition. It directed the Revenue Department to take necessary action within 5 working days from the date of the order to comply with the decision. The judgment reiterated that the legal position established in previous cases must be followed in similar matters, ensuring uniform application of the law. The writ petition was allowed, with no costs incurred, and the connected miscellaneous petition was closed as a result of the decision.