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2021 (1) TMI 250 - HC - VAT / Sales TaxConcessional benefit of tax - purchase of High Speed Diesel from suppliers in other States - difficulty in obtaining C-Form - HELD THAT - Revenue places reliance 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 where it was held that The 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, one of which has been confirmed by the Supreme Court, are decisions in rem, applicable to all dealers that seek benefit thereunder, of course, in accordance with law. The State has, after the date of the above order, in THE COMMISSIONER OF COMMERCIAL TAXES, CHEPAUK, CHENNAI, THE ADDITIONAL COMMISSIONER (CT) VERSUS THE RAMCO CEMENTS LTD. AND THE STATE TAX OFFICER, THE JOINT COMMISSIONER (CS) (SYSTEMS) VERSUS SUNDARAM FASTENERS LIMITED 2020 (3) TMI 450 - MADRAS HIGH COURT challenging the decision in the case of Ramco Cements that has been considered and dismissed by a Division Bench of this Court has held that Appellant State and the Revenue Authorities are directed not to restrict the use of 'C' Forms for the inter-State purchases of six commodities by the Respondent/Assessees and other registered Dealers at concessional rate of tax and they are further directed to permit Online downloading of such Declaration in 'C' Forms to such Dealers. The Circular letter of the Commissioner dated 31.5.2018 stands quashed and set aside along with the consequential Notices and Proceedings initiated against all the Assessees throughout the State of Tamil Nadu. As on date, the order in Writ Appeal is final, and following the rationale thereof, this Writ Petition is allowed. 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 - petition allowed.
Issues Involved:
- Entitlement to 'C' Forms for purchasing High Speed Diesel from suppliers in other states to avail concessional tax benefits. - Applicability of court decisions in favor of dealers seeking concessional tax rates. - Challenge by the State regarding the entitlement to 'C' Forms and registration under the CST Act. - Validity of the Circular letter of the Commissioner restricting the use of 'C' Forms. Analysis: Issue 1: Entitlement to 'C' Forms for purchasing High Speed Diesel from suppliers in other states The petitioner, a dealer, sought 'C' Forms under the Central Sales Tax Act, 1956 for purchasing High Speed Diesel from suppliers in other states to avail concessional tax benefits. The court referred to previous decisions, including M/s. Ramco Cements Ltd., where it was held that dealers purchasing goods from neighboring states through inter-state sales are entitled to the concessional tax rate. The court emphasized that such benefits are applicable to all dealers seeking them, not limited to those party to specific decisions. Issue 2: Applicability of court decisions in favor of dealers The court cited various judgments, including those by the Punjab and Haryana High Court and the Supreme Court, confirming the entitlement of dealers to 'C' Forms for purchasing goods from other states. It emphasized that these decisions are applicable to all dealers seeking benefits under the law. The court directed all assessing authorities in Tamil Nadu to apply the rationale of these decisions to all pending assessments until any contrary order is issued. Issue 3: Challenge by the State regarding 'C' Forms and registration under the CST Act The State expressed intent to challenge the court's decision regarding the entitlement to 'C' Forms and registration under the CST Act through a Special Leave Petition. However, the court held that the order in the Writ Appeal was final, allowing the petitioner's request for inclusion of High Speed Diesel Oil as a commodity in the registration certificate, and issuance of 'C' Forms within a specified timeframe. Issue 4: Validity of the Circular letter restricting 'C' Forms use The court quashed and set aside the Circular letter of the Commissioner dated 31.5.2018, which restricted the use of 'C' Forms for inter-State purchases of certain commodities. It directed the Revenue Authorities to permit online downloading of 'C' Forms for such transactions and dismissed the Writ Appeals filed by the State, emphasizing the freedom of trade and the right to purchase in inter-State commerce. In conclusion, the judgment upheld the entitlement of dealers to 'C' Forms for purchasing goods from other states at concessional tax rates, emphasizing the applicability of court decisions and rejecting challenges by the State. It also highlighted the importance of ensuring freedom of trade and fair treatment for all industries under the law.
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