2020 (4) TMI 137 - HC - VAT and Sales Tax

Concessional rate of tax - C-Forms - inter-state purchase of High Speed Diesel Oil for use in the mining and for captive power plant start-up for manufacture of cement at their cement factory - HELD THAT - In the M/S. THE RAMCO CEMENTS LTD. VERSUS THE COMMISSIONER OF COMMERCIAL TAXES, THE ADDITIONAL COMMISSIONER (CT) 2018 (10) TMI 1529 - MADRAS HIGH COURT , this Court allowed the writ petitions filed by the assessees and directed the Revenue to permit the petitioners assessees to download 'C' forms. It is not in dispute (as submitted by the learned counsel for Revenue) that though an intra Court appeal has been preferred against Ramco Cements matter with a delay of three days, the same remains unnumbered as of today. In other words, Ramco Cements authored by a Hon'ble Judge of this Court is holding the field as of today - Post Ramco Cements matter, a similar situation came up before another Hon'ble Single Judge in M/S. SOUTHERN COTSPINNERS COIMBATORE PRIVATE LIMITED REPRESENTED BY ITS MANAGING DIRECTOR, MR. S.V. DEVARAJAN VERSUS THE STATE OF TAMIL NADU, REPRESENTED BY THE SECRETARY TO GOVERNMENT COMMERCIAL TAXES DEPARTMENT, THE PRINCIPAL COMMISSIONER COMMISSIONER OF COMMERCIAL TAXES, THE ASSISTANT COMMISSIONER (ST) , THE JOINT COMMISSIONER (ST) , CHENNAI 2019 (6) TMI 490 - MADRAS HIGH COURT and the same came to be disposed of on 26.04.2019. In the said order, learned Single Judge held that till such time the order of Ramco Cements is either stayed or reversed it is incumbent upon all Assessing Authorities within the State of Tamil Nadu to apply the rationale and the principle laid down in Ramco Cements with regard to pending assessments. This position is not disputed. In the light of the trajectory, which this matter has taken at the admission stage, it follows as a natural sequitur that instant writ petition stands allowed - Petition allowed.

Summary

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

Analysis:
The main issue in this case revolves around the purchase of High Speed Diesel Oil for use in mining and captive power plant start-up for cement manufacturing at a factory. The petitioner had been making inter-state purchases of the oil at a concessional tax rate of 2% using 'C' forms. However, after the introduction of the Goods and Services Tax (GST), the petitioner faced difficulties in downloading the 'C' forms and was informed by the Revenue Department that they were not entitled to purchase the oil at the concessional rate anymore. This led to the blocking of access to 'C' forms for the petitioner and others in similar situations.

The legal position was clarified based on previous judgments. A common order in the 'Ramco Cements matter' allowed assessees to download 'C' forms, and a subsequent order in another case emphasized the application of the Ramco Cements decision until stayed or reversed. The court highlighted that decisions like Ramco Cements are applicable to all dealers seeking benefits under them, in accordance with the law.

In line with the precedents and legal trajectory established by previous judgments, the instant writ petition was allowed. The Revenue Department was directed to take necessary action within 5 working days from the date of the order. The court emphasized that the decision should be implemented promptly, and no costs were awarded in this case.