2020 (2) TMI 127 - HC - VAT and Sales Tax

Levy of CST - HSD - issuance of Form C - HELD THAT - In the case on hand, when the authority itself has granted amendment by adding HSD in the CST as well as in the VAT registration of the writ applicant No.1 for the purpose of using the same in the mining electricity generation activity of the writ applicant No.1-Company, the respondent No.2 could not have declined to grant permission to issue C Form under the provisions of the CST Act. Issue decided in the case of GAURAV CONTRACTS COMPANY VERSUS STATE OF GUJARAT 2019 (6) TMI 802 - GUJARAT HIGH COURT where it was held that there being no power vested in the authority to review its order under section 7 of the CST Act or to keep such order in abeyance, the stand of the second respondent in the impugned letters dated 27.2.2019 informing the petitioners that their on-line applications had been approved through oversight and that High Speed Diesel would be included in CST commodity after obtaining guidance of the higher authority cannot be countenanced even for a moment. Application allowed.

Summary

Issues:
1. Interpretation of the definition of "goods" under the CST Act post the introduction of GST.
2. Validity of denying permission to issue Form "C" for the purchase of High Speed Diesel.
3. Requirement of separate registrations under CST Act and GST Act for dealers dealing in goods covered by both Acts.
4. Consideration of previous court decisions on similar matters.

Analysis:
1. Interpretation of the definition of "goods" under the CST Act post the introduction of GST:
The Court considered the amended definition of "goods" under the CST Act, which now includes only specific items not covered by GST. The judgment emphasized that dealers dealing in commodities within the amended definition of "goods" are required to be registered under the CST Act to avail the reduced tax rate under section 8. The Court clarified that dealers can hold separate registrations under both Acts for goods falling within their respective purviews.

2. Validity of denying permission to issue Form "C" for the purchase of High Speed Diesel:
The petitioners sought relief against the communication from the Assistant Commissioner of State GST, which refused permission to issue Form "C" for purchasing High Speed Diesel. The Court noted that the authority had previously amended the CST and VAT registrations of the petitioners to include High Speed Diesel. As a result, the Court held that the denial of permission to issue Form "C" was unjustified, and directed the respondent to issue the Form for the relevant quarters.

3. Requirement of separate registrations under CST Act and GST Act for dealers dealing in goods covered by both Acts:
The judgment highlighted the possibility for dealers to hold separate registrations under both the CST Act and the GST Act for goods falling within the ambit of each Act. The Court emphasized that dealers can be registered under both Acts if they deal in goods covered by the definitions provided in the respective Acts, enabling them to avail the benefits under each Act as applicable.

4. Consideration of previous court decisions on similar matters:
The Court referred to a previous decision in the case of Gaurav Contractors Company, which addressed the issue of registration under the CST Act for dealers also registered under the GST Act. The judgment in the present case relied on the observations from the earlier decision to support the conclusion that dealers can hold separate registrations under both Acts for goods covered by their respective definitions.

In conclusion, the Court allowed the writ application, quashed the impugned communication, and directed the issuance of Form "C" for the relevant quarters. The judgment reiterated the possibility and validity of holding separate registrations under the CST Act and GST Act for dealers dealing in goods covered by both Acts, based on the specific definitions provided under each Act.