2019 (7) TMI 552 - 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 - petition could not download the 'C' forms - HELD THAT - 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 , this Court allowed the writ petitions filed by the assessees and directed the Revenue to permit the petitioners dealers to download 'C' forms. There is no disputation or disagreement that the instant writ petition falls clearly within the four corners of Ramco Cements order - it follows as a natural sequitur that the instant writ petition stands allowed. Petition allowed.

Summary

Issues involved:
Purchase of High Speed Diesel Oil for use in generation and distribution of electricity and other forms of power under the Goods and Services Tax regime.

Analysis:
The main issue in this case revolves around the purchase of High Speed Diesel Oil for the generation and distribution of electricity and power. The petitioner had been making inter-state purchases of the oil at a concessional rate of tax using 'C' forms. However, after the introduction of the Goods and Services Tax (GST), the petitioner faced challenges as they could not download the 'C' forms anymore. The Revenue Department informed the petitioner that post-GST implementation, they were not entitled to purchase the oil from other states at a concessional tax rate. This led to the blocking of access to 'C' forms for the petitioner and others in similar situations. The factual aspects of the case were not in dispute, and the legal position was clear.

The judgment referred to a previous case known as the 'Ramco Cements matter,' where the court allowed writ petitions filed by assesses and directed the Revenue to permit dealers to download 'C' forms. Despite an intra-court appeal against the Ramco Cements matter, it remained unnumbered, meaning the judgment held the field. Another case, 'Southern Cotspinners Coimbatore Private Limited,' reiterated the importance of applying the rationale of the Ramco Cements decision to pending assessments until it was stayed or reversed. The court emphasized that decisions like Ramco Cements are applicable to all dealers seeking benefits, not just those party to the specific case.

Given the precedents set by the Ramco Cements matter and the Southern Cotspinners case, the court in the present judgment allowed the writ petition related to the purchase of High Speed Diesel Oil. The Revenue Department was directed to take necessary action within five working days from the date of the order. The court's decision was clear, and no costs were imposed. The judgment emphasized the importance of following established legal principles and providing relief to parties affected by similar issues under the GST regime.