2019 (8) TMI 120 - HC - VAT and Sales Tax

Concessional rate of duty - downloading of C-Form pending - inter-state purchase of High Speed Diesel - Held that - The issue 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. Instant writ petition is allowed in respect of mandamus limb of the prayers alone. 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 copy of this order - petition allowed in part.

Summary

Issues involved:
Inter-state purchase of High Speed Diesel, entitlement to concessional tax rate, access to 'C' forms under GST regime, validity of circular letter issued by Commercial Tax Department.

Analysis:
1. Inter-state purchase of High Speed Diesel: The petitioner was involved in inter-state purchases of High Speed Diesel Oil at a concessional tax rate of 2% using 'C' forms. However, after the introduction of the Goods and Services Tax (GST) regime, the petitioner faced difficulties in downloading the 'C' forms. The Revenue Department blocked access to the forms, stating that post-GST implementation, the petitioner was not entitled to purchase High Speed Diesel Oil from other states at the concessional tax rate.

2. Validity of Circular Letter: The main contention in the writ petition was the challenge against a circular letter issued by the Commercial Tax Department on 31.05.2018. The petitioner sought certiorarified mandamus in this case, unlike a previous order where only mandamus was requested. The court noted that the issue in the instant case was similar to a previous order dated 04.06.2019, which dealt with a request for downloading 'C' forms for inter-state purchase of High Speed Diesel.

3. Legal Precedents: The court referred to a previous judgment in the 'Ramco Cements matter,' where the court allowed writ petitions filed by assessees, directing the Revenue Department to permit downloading of 'C' forms. Another judgment in W.P.No.12520 of 2019 emphasized the application of the principles laid down in the Ramco Cements case until stayed or reversed. The court highlighted the importance of applying these precedents to similar cases within the State of Tamil Nadu.

4. Decision: Considering the precedents and the specific circumstances of the case, the court allowed the writ petition in part, specifically granting the mandamus relief. The Revenue Department was directed to take necessary action within 5 working days from the date of the order. The court did not award costs and closed the connected miscellaneous petitions. The judgment emphasized the importance of following established legal principles and precedents in similar matters to ensure consistency and fairness in tax assessments and entitlements.