2020 (12) TMI 632 - HC - VAT / Sales Tax

Concessional benefit of tax - purchase of High Speed Diesel from suppliers in other States - difficulty in obtaining C-Form - HELD THAT - The issue involved in this Writ Petition is squarely covered by a decision of this Court in the case of M/S. DHANDAPANI CEMENT PRIVATE LTD., M/S. TERU MURUGAN BLUE METAL VERSUS THE STATE OF TAMIL NADU, THE PRINCIPAL COMMISSIONER COMMISSIONER OF COMMERCIAL TAXES, THE ASSISTANT COMMISSIONER (ST) , THE JOINT COMMISSIONER (ST) TERRITORIAL, THE DEPUTY COMMISSIONER (ST) 2019 (2) TMI 1850 - MADRAS HIGH COURT wherein the identical issue was raised where it was held that Petitioner in these Writ Petitions has stated on affidavit that it is unable to download the C forms from the websites as the same stand blocked from use. Upon enquiry with the Assessing Authorities, they have been informed that the benefit of the decision in M/s Ramco Cements Ltd can be extended only to those dealers that are party to the decision. This stand is unacceptable in so far as the decision of this Court as well as other High Courts applicable to all dealers that seek benefit thereunder, of course, in accordance with law. The petitioner is entitled to the inclusion of High Speed Diesel Oil as a commodity in the registration certificate. Let this exercise be carried out within a period of four (4) weeks from date of uploading of this order. The request of the petitioner for issuance of C Forms is allowed as a consequence thereof - petition allowed.

Summary

Issues involved:
- Entitlement to 'C' Forms for purchase of High Speed Diesel from suppliers outside Tamil Nadu to avail concessional benefit of tax.
- Application of the rationale of a specific decision to all pending assessments within the State of Tamil Nadu.
- Challenge by the State against a specific order in Writ Appeal.
- Inclusion of 'High Speed Diesel Oil' as a commodity in the registration certificate.

Entitlement to 'C' Forms for purchase of High Speed Diesel:
The petitioner, a dealer, sought 'C' Forms under the Central Sales Tax Act, 1956 to avail the concessional tax benefit for purchasing High Speed Diesel from suppliers in other states. The issue was previously addressed in a decision involving M/s. Ramco Cements Ltd., where it was held that the benefit of the concessional rate is available to dealers making inter-state purchases. This decision was supported by various other court judgments, including one confirmed by the Supreme Court. The court emphasized that the benefit applies to all dealers seeking it, not just those party to a specific case. The State intended to challenge the decision but until then, all Assessing Authorities in Tamil Nadu were directed to apply the rationale of the decision to all pending assessments.

Application of the rationale of a specific decision:
The court emphasized that the decision regarding the entitlement to 'C' Forms for purchasing High Speed Diesel from other states should be universally applied to all pending assessments within Tamil Nadu until any contrary decision is made. The court rejected the notion that the benefit was limited only to dealers involved in a specific case, stating that such decisions apply to all eligible dealers seeking the benefit.

Challenge by the State against a specific order in Writ Appeal:
The State filed a Writ Appeal challenging the decision in the case of Ramco Cements Ltd., which was dismissed by a Division Bench of the High Court. The court held that dealers could continue to have registration under the CST Act, rejecting the Revenue's contention that they had lost their entitlement. The court highlighted that even purchasing dealers could secure registration under the Act, and the scope of the Act remained intact despite amendments to the definition of 'goods.' The court dismissed the Writ Appeals filed by the State, directing the authorities not to restrict the use of 'C' Forms for inter-State purchases of specified commodities.

Inclusion of 'High Speed Diesel Oil' as a commodity in the registration certificate:
Following the rationale of the Writ Appeal decision, the petitioner was allowed to include 'High Speed Diesel Oil' as a commodity in the registration certificate. The court directed this inclusion to be completed within four weeks of the order's upload, allowing the petitioner to request 'C' Forms as a consequence. The court noted that the State intended to challenge the Writ Appeal decision but upheld the petitioner's entitlement based on the current final order.