2019 (6) TMI 1136 - HC - VAT and Sales Tax

Concessional rate of tax at 2% - 'C' forms - purchase of High Speed Diesel Oil for use in generation and distribution of electricity and other forms of power - HELD THAT - There is no dispute or disagreement that the instant writ petition falls clearly within the four corners of M/S. THE RAMCO CEMENTS LTD. VERSUS THE COMMISSIONER OF COMMERCIAL TAXES, THE ADDITIONAL COMMISSIONER (CT) 2018 (10) TMI 1529 - MADRAS HIGH COURT where it was held 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. This matter has taken at the admission stage, it follows as a natural sequitur that the instant writ petition stands allowed - Petition allowed.

Summary

Issues:
1. Interpretation of tax laws post introduction of Goods and Service Tax (GST)
2. Entitlement to purchase High Speed Diesel Oil from other states at concessional tax rates
3. Application of legal principles from previous judgments in similar cases

Analysis:
1. The main issue in this judgment revolves around the interpretation of tax laws following the introduction of Goods and Service Tax (GST). The petitioner had been purchasing High Speed Diesel Oil at a concessional tax rate of 2% using 'C' forms, but faced difficulties after the implementation of GST as they were unable to download the forms. The Revenue Department blocked access to the forms, stating that post-GST, the petitioner was not entitled to purchase the oil at the concessional rate.

2. The judgment refers to a previous case, known as the 'Ramco Cements matter,' where the court allowed the petitioners to download 'C' forms for purchasing High Speed Diesel Oil. Despite an intra-court appeal against the Ramco Cements judgment, it remained unnumbered, thereby upholding the decision. Another case, W.P.No.12520 of 2019, also applied the principles of the Ramco Cements case, directing Assessing Authorities to follow its rationale for pending assessments. The current writ petition was found to fall within the scope of these previous judgments.

3. The court emphasized the importance of applying the principles established in previous judgments to similar cases. It cited paragraphs 5 and 6 of the 'Southern Cotspinners Coimbatore Private Limited Case,' which highlighted the obligation of Assessing Authorities to extend the benefits of previous decisions to all dealers seeking relief, not just those directly involved in the cases. The court allowed the current writ petition, directing the Revenue Department to take necessary action within 5 working days of the order.

In conclusion, the judgment clarifies the application of tax laws post-GST implementation, reaffirms the entitlement of the petitioner to purchase High Speed Diesel Oil at concessional rates, and underscores the importance of applying legal principles from previous judgments to similar cases for consistency and fairness in decision-making.