2019 (7) TMI 317 - HC - VAT / Sales Tax

Concessional rate of tax - Permission for downloading 'C' Form - inter-state purchase of High Speed Diesel - HELD THAT - The issue is squarely covered by the decision in the case of M/S. SHIR VARALAKSHMI COMPANY VERSUS THE STATE OF TAMIL NADU, THE PRINCIPAL COMMISSIONER COMMISSIONER OF COMMERCIAL TAXES, THE ASSISTANT COMMISSIONER (ST) , THE JOINT COMMISSIONER (ST) , THE JOINT COMMISSIONER COMPUTER CELL 2019 (6) TMI 495 - MADRAS HIGH COURT where it was held that this Court allowed the writ petitions filed by the assessees and directed the Revenue to permit the petitioners assessees to download 'C' forms. Petition allowed - decided in favor of appellant.

Summary

Issues:
1. Interpretation of the law regarding the purchase of High Speed Diesel Oil post-GST implementation.
2. Validity of blocking access to 'C' forms for inter-state purchases of High Speed Diesel Oil.
3. Application of previous judgments in similar cases to the current petition.

Analysis:

Interpretation of the law regarding the purchase of High Speed Diesel Oil post-GST implementation:
The central theme of the case revolved around the purchase of High Speed Diesel Oil for electricity generation and distribution. The petitioner had been making inter-state purchases at a concessional tax rate of 2% using 'C' forms. However, after the introduction of Goods and Services Tax (GST), the petitioner was unable to download 'C' forms due to being informed by the Revenue Department that post-GST implementation, inter-state purchases of High Speed Diesel Oil at a concessional tax rate were not permissible. The legal position was clear that the petitioner was not entitled to purchase High Speed Diesel Oil from other states at a concessional tax rate post-GST.

Validity of blocking access to 'C' forms for inter-state purchases of High Speed Diesel Oil:
The issue of blocking access to 'C' forms for inter-state purchases of High Speed Diesel Oil was a crucial aspect of the case. The petitioner was denied access to download 'C' forms post-GST implementation, as the Department's site had been blocked for such purposes. The court referred to previous judgments, particularly the 'Ramco Cements matter,' where the court had directed the Revenue to permit assessees to download 'C' forms. The court emphasized that until the order in the 'Ramco Cements matter' was stayed or reversed, it was incumbent upon all Assessing Authorities within the State to apply the rationale of that decision to pending assessments.

Application of previous judgments in similar cases to the current petition:
The court noted that the instant writ petition fell within the scope of the 'Ramco Cements case' and a subsequent order made by another Single Judge in a related matter. The court allowed the writ petition, setting aside the impugned order dated 23.04.2019 and directing the Revenue/Department/Respondents to take necessary action within 5 working days from the date of receipt of the order. The court's decision was in line with the principles established in previous judgments, ensuring consistency in the application of legal interpretations to similar cases.