2020 (7) TMI 651 - HC - VAT and Sales Tax

Concessional rate of tax - Issuance of C-Form - purchase of High Speed Diesel - inter-State purchase - HELD THAT - The first respondent is directed to dispose of the on-line application dated 03.02.2020 and the subsequent application dated 06.02.2020 sent by registered post by the petitioner, on merits and in accordance with law and also in the light of the aforesaid decisions rendered by this Court, within a period of four weeks from the date of uploading the copy of this order in the website. Petition disposed off.

Summary

Issues:
Seeking direction to include "High Speed Diesel" in registration certificate for inter-State purchase and issuance of "C" forms under CST Act.

Analysis:
The petitioner, a registered dealer running mushroom farms, sought inclusion of "High Speed Diesel" in their registration certificate for inter-State purchase at a concessional tax rate. They claimed entitlement under CST Act sections 7(1) and 7(2) to procure High Speed Diesel at 2% tax from other State suppliers. Despite making requests, their applications were pending without consideration. The petitioner relied on a Division Bench judgment in Commissioner of Commercial Taxes, Chennai vs. The Ramco Cements Ltd., which emphasized the right to purchase restricted items under CST Act even if not selling them, to support their case.

The Division Bench decision highlighted that denying the right to purchase goods under existing registration certificates solely based on not selling those goods would lead to an unconstitutional classification under Article 14 of the Constitution of India. It emphasized that the right to purchase certain goods at concessional rates is not contingent on selling them, ensuring fairness across industries. The judgment directed the State not to restrict the use of "C" forms for inter-State purchase of specified commodities and quashed related circulars and proceedings.

The petitioner's counsel referenced a similar decision in WP.No.7282, 7284, and 7285 of 2020, where the Court directed immediate action by the department in a comparable scenario. The Additional Government Pleader for the respondents agreed with the petitioner's submissions. Consequently, the Court directed the first respondent to process the petitioner's applications promptly, considering the previous rulings and disposing of them within four weeks. The writ petition was thus disposed of without costs, in line with the earlier decisions and principles of law.