2019 (7) TMI 112 - 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 - 'C' forms not downloaded - HELD THAT - There is no disputation or disagreement that the instant writ petitions clearly fall within the four corners of 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 It follows as a natural sequitur that prayers in the instant writ petitions deserve to be acceded to and therefore instant writ petitions stand allowed - Consequently, necessary action has to be taken by the Revenue/Department/Respondents forthwith which in any case shall not be more than 5 working days from the date of receipt of a copy of this order. Petition allowed.

Summary

Issues:
1. Purchase of High Speed Diesel Oil under GST regime on concessional rate of tax.
2. Entitlement to download 'C' forms for inter-state purchases.
3. Application of legal position post 'Ramco Cements' judgment.
4. Compliance by Assessing Authorities in pending assessments.

Analysis:
1. The central theme of the writ petitions revolved around the purchase of High Speed Diesel Oil under the Goods and Services Tax (GST) regime. The petitioner had been procuring the oil at a concessional tax rate of 2% using 'C' forms for inter-state purchases. However, post-GST implementation, the petitioner faced challenges in downloading the 'C' forms and was informed by the Department that such concessional rates were no longer applicable.

2. The legal position post the 'Ramco Cements' judgment was crucial in determining the outcome of the writ petitions. The 'Ramco Cements' order, delivered by a Hon'ble Single Judge, allowed assessees to download 'C' forms for inter-state purchases. Despite an intra Court appeal against the judgment, it remained unnumbered, making the 'Ramco Cements' decision binding as of the present date.

3. Another judgment in 'Southern Cotspinners Coimbatore Private Limited' reiterated the application of the 'Ramco Cements' principle until stayed or reversed. This directive mandated all Assessing Authorities in Tamil Nadu to adhere to the 'Ramco Cements' ruling for pending assessments. The judgment emphasized the universal applicability of decisions in rem, extending benefits to all eligible dealers.

4. Consequently, the instant writ petitions aligned with the 'Ramco Cements' order and the subsequent judgment in 'Southern Cotspinners Coimbatore Private Limited.' The Court, considering the trajectory of the case and the legal precedents, allowed the writ petitions. The Revenue Department was directed to take necessary action within 5 working days from the date of the order, ensuring compliance with the judgment.

In conclusion, the Court's decision in the writ petitions was influenced by the legal interpretations post the 'Ramco Cements' judgment, emphasizing the importance of consistent application of legal principles in pending assessments under the GST regime.