2021 (6) TMI 581 - HC - VAT and Sales Tax

Concessional rate of duty - issuance of C-Forms - inclusion of 'High Speed Diesel Oil' as a commodity in the registration certificate - HELD THAT - R liance on the said circular is misplaced in view of the subsequent judicial pronouncement. It cannot be in dispute that the case on hand is covered by the decision reported 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 where it was 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 petitioner is entitled to the inclusion of 'High Speed Diesel Oil' as a commodity in the registration certificate - petition allowed - decided in favor of petitioner.

Summary

Issues:
1. Interpretation of circular dated 05.09.2019 regarding registration certificates.
2. Application of judicial pronouncements on the right to purchase goods under CST Act.
3. Challenge to the Division Bench's order by the Department.
4. Supreme Court's consideration of various High Court judgments on the issue.
5. Inclusion of 'High Speed Diesel Oil' in the registration certificate and issuance of 'C' Forms.

Analysis:
1. The petitioner's prayer was opposed based on the circular dated 05.09.2019. The judge found this reliance misplaced due to subsequent judicial pronouncements. Reference was made to a judgment in W.P.No. 14510 of 2020 where it was held that denial of the right to purchase goods under the CST Act would lead to invidious classification, violating Article 14 of the Constitution of India.

2. The Division Bench's order was challenged by the Department in the Supreme Court through Special Leave to Appeal. However, the Supreme Court dismissed the appeals, citing the consistent view of various High Courts on the matter. The Supreme Court emphasized the importance of following the judgments of different High Courts and declined to interfere in the special leave petitions.

3. Consequently, the writ petition was allowed by the High Court, granting the inclusion of 'High Speed Diesel Oil' in the registration certificate. The petitioner's request for issuance of 'C' Forms was also allowed. The Court directed the exercise to be completed within four weeks from the date of the order, with no costs imposed on either party.