2019 (7) TMI 454 - HC - VAT and Sales Tax

Concessional rate of tax - purchase of High Speed Diesel Oil for use in generation and distribution of electricity and other forms of power - C-Forms could not be downloaded - HELD THAT - There is no disputation 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. Petition allowed - decided in favor of petitioner.

Summary

Issues:
1. Entitlement to purchase High Speed Diesel Oil at concessional tax rate post-GST implementation.
2. Validity of blocking access to 'C' forms for inter-state purchases.
3. Application of previous judgments in similar cases to the current writ petition.

Analysis:
Issue 1: The central theme of the writ petition revolves around the purchase of High Speed Diesel Oil for electricity generation and distribution post-GST implementation. The petitioner previously purchased the oil at a concessional tax rate of 2% using 'C' forms. However, after GST introduction, they were informed by the Revenue Department that such purchases were no longer permissible at the reduced rate, leading to the blocking of access to 'C' forms.

Issue 2: The judgment refers to a previous case, 'Ramco Cements matter,' where the court allowed the writ petitions and directed the Revenue to allow dealers to download 'C' forms. The court noted that until the order in the Ramco Cements case is stayed or reversed, Assessing Authorities in Tamil Nadu must apply the principles laid down in that case to pending assessments. This position was reiterated in another case, 'Southern Cotspinners Coimbatore Private Limited,' emphasizing the applicability of decisions in rem to all dealers seeking benefits, subject to the law.

Issue 3: The current writ petition aligns with the decisions in the Ramco Cements case and the Southern Cotspinners Coimbatore Private Limited case. Consequently, the court allowed the writ petition, directing the Revenue/Department/Respondents to take necessary action within 5 working days from the order's receipt. The judgment concluded by allowing the writ petition without costs and closing the connected miscellaneous petitions. The decision underscores the importance of applying established legal principles to similar cases for consistency and fairness in legal outcomes.