2019 (6) TMI 882 - HC - VAT and Sales Tax

Denial of downloading and issuance of 'C' declaration forms - post GST situation - Concessional rate of tax on purchase of High Speed Diesel Oil for use in generation and distribution of electricity and other forms of power - HELD THAT - The said issue came up for consideration before another Hon'ble Judge of this Court in a batch of writ petitions in the case of M/S. THE RAMCO CEMENTS LTD. VERSUS THE COMMISSIONER OF COMMERCIAL TAXES, THE ADDITIONAL COMMISSIONER (CT) 2018 (10) TMI 1529 - MADRAS HIGH COURT . In the batch, the lead matter is 'The Ramco Cements Ltd.,' and therefore, the aforesaid order shall be referred to as 'Ramco Cements matter'. It was held in the case that the respondents are directed to permit these petitioners to download 'C ' forms, as has been done in the past for the purpose of purchasing petroleum products against the issuance of 'C' declaration forms There is no dispute or disagreement that the instant writ petitions fall clearly within the four corners of Ramco Cements case - Petition allowed.

Summary

Issues:
Purchase of High Speed Diesel Oil for use in generation and distribution of electricity and other forms of power.

Analysis:
The judgment by the Madras High Court dealt with two writ petitions concerning the purchase of High Speed Diesel Oil for power generation. The petitioners had been buying the oil at a concessional tax rate of 2% using 'C' forms. However, after the introduction of Goods and Services Tax (GST), they were unable to download the forms as the Revenue Department blocked access, stating that post-GST implementation, such purchases were not eligible for the concessional tax rate. The legal position was established through previous judgments, notably the 'Ramco Cements matter,' where the Court allowed assessees to download 'C' forms. Another judgment in W.P.No.12520 of 2019 reiterated the application of the Ramco Cements decision until stayed or reversed. The Court emphasized that decisions like Ramco Cements apply to all dealers seeking benefits, not just parties involved in the specific case.

The Court highlighted the importance of applying the rationale of previous judgments to pending assessments within Tamil Nadu. The judgment in Southern Cotspinners Coimbatore Private Limited case underscored the need for uniform application of decisions benefiting all eligible dealers. Consequently, the instant writ petitions were allowed, directing the Revenue Department to take necessary action within 5 working days from the order's receipt. The Court's decision was in line with the trajectory of similar cases at the admission stage, ensuring timely resolution for the petitioners. Ultimately, the writ petitions were allowed without costs, ensuring compliance with the legal precedents and providing relief to the petitioners in accessing the concessional tax benefits for High Speed Diesel Oil purchases for power generation purposes.