2019 (9) TMI 697 - HC - VAT and Sales Tax

Purchase of High Speed Diesel Oil - inter-state purchases - concessional rate of tax - unable to download C-Forms - HELD THAT - The issue is covered in favor of the assessee by a decision of this Court in 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.

Summary

Issues involved:
Purchase of High Speed Diesel Oil for manufacturing ready mix concrete under concessional tax rate post-GST implementation.

Analysis:
The main issue in this judgment revolves around the purchase of High Speed Diesel Oil for the manufacturing process of ready mix concrete. The petitioner had been availing a concessional tax rate of 2% by using 'C' forms for inter-state purchases of the oil. However, after the introduction of Goods and Services Tax (GST), the petitioner faced challenges as they were unable to download the 'C' forms and were informed by the Revenue Department that they were no longer entitled to the concessional tax rate post-GST implementation. This led to the blocking of access to 'C' forms for the petitioner and others in similar situations.

The legal position established through previous judgments is crucial in this case. Reference is made to a previous batch of writ petitions where a common order was passed by a Hon'ble Single Judge in the 'Ramco Cements matter.' In this matter, the Court allowed the writ petitions and directed the Revenue to permit the petitioners to download 'C' forms. It is noted that an intra Court appeal against the Ramco Cements matter remains unnumbered, indicating that the judgment holds the field as of the current date.

Furthermore, another judgment in a separate case emphasized the importance of applying the rationale and principles laid down in the Ramco Cements matter to pending assessments until the order is stayed or reversed. This establishes a legal precedent that the Assessing Authorities within the State of Tamil Nadu must adhere to the decisions made in the Ramco Cements case until further notice.

The judgment in the instant case aligns with the precedents set by the Ramco Cements matter and subsequent rulings. The Court allows the writ petition, directing the Revenue/Department/Respondents to take necessary action within 5 working days from the date of receipt of the order. The decision is in line with the legal trajectory established by previous judgments and ensures compliance with the principles laid down in those cases.