2019 (9) TMI 237 - HC - VAT and Sales Tax

Purchase of High Speed Diesel Oil - inter-state purchase - concessional rate of tax - rejection on the ground of failure to download C Forms - post GST implementation situation. HELD THAT - In the case of Ramco Cements, 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 petitions filed by the assessed and directed the Revenue to permit the petitioners assessees to download C Forms. It is not in dispute that though an intra court appeal has been preferred against Ramco Cements matter with a delay of three days, the same remains unnumbered as of today. Thus there is no dispute that the instant petition falls clearly within the four corners of Ramco Cements matter - petition allowed.

Summary

Issues:
1. Interpretation of GST Act regarding the purchase of High Speed Diesel Oil.
2. Access to 'C' forms for concessional rate of tax on inter-state purchases.
3. Application of legal precedents 'Ramco Cements matter' and 'Southern Cotspinners Coimbatore Private Limited' to the current case.

Analysis:
1. The petitioner had been purchasing High Speed Diesel Oil for captive power generation in Tamil Nadu at a concessional tax rate of 2% using 'C' forms. However, after the introduction of GST, they were unable to download the 'C' forms, leading to a dispute with the Revenue Department regarding the entitlement to purchase the oil at a lower tax rate post-GST implementation.
2. The legal position was clarified based on previous judgments, notably the 'Ramco Cements matter,' where the High Court allowed assessees to download 'C' forms despite the introduction of GST. Another judgment in 'Southern Cotspinners Coimbatore Private Limited' reiterated the need for Assessing Authorities to apply the principles of the Ramco Cements case to pending assessments until a different decision is made. The court emphasized that decisions like Ramco Cements are applicable to all dealers seeking benefits, not just those directly involved in the case.
3. Given the precedents and legal positions established in the Ramco Cements matter and Southern Cotspinners Coimbatore Private Limited case, the High Court allowed the instant writ petition, directing the Revenue Department to take necessary action within 5 working days. The court's decision was in line with the principles laid down in the previous judgments, ensuring uniform application of legal interpretations in similar cases.