2019 (8) TMI 1164 - 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 issue 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. It follows as a natural sequitur that instant writ petition stands allowed - petition allowed.

Summary

Issues:
Purchase of High Speed Diesel Oil under GST regime on concessional tax rate using 'C' forms.

Analysis:
The main issue in this case revolves around the purchase of High Speed Diesel Oil for manufacturing yarn and generating or distributing electricity under the GST regime. The petitioner had been availing a concessional tax rate of 2% by using 'C' forms for inter-state purchases. However, after the introduction of GST, they faced difficulties in downloading the 'C' forms as they were informed by the Revenue Department that they were no longer entitled to the concessional tax rate post-GST implementation.

The legal position was clarified based on previous judgments, notably the 'Ramco Cements matter' where the High Court allowed writ petitions filed by assessees to download 'C' forms despite an intra-court appeal against the judgment. Another judgment in 'Southern Cotspinners Coimbatore Private Limited' reiterated the need for Assessing Authorities to apply the rationale of the Ramco Cements decision to pending assessments until it is stayed or reversed. The court emphasized that decisions like these are applicable to all dealers seeking benefits under them.

Considering the precedents and legal positions established in previous judgments, the court allowed the instant writ petition. The Revenue Department was directed to take necessary action within 5 working days from the date of the order. The writ petition was allowed with no costs, and the connected miscellaneous petition was closed.

In conclusion, the judgment clarified the entitlement of the petitioner to avail the concessional tax rate for purchasing High Speed Diesel Oil under the GST regime based on previous court decisions. The court's decision was in line with established legal principles and aimed at providing relief to the petitioner in accessing the necessary forms for their transactions.