2019 (11) TMI 1061 - HC - VAT and Sales Tax

Non-issuance of C-Forms - Central Sales Tax (CST) Registration not done - Rajasthan Value Added Tax Act - purchase of High speed diesel - HELD THAT - This Court is of the opinion that denial of C Forms is purely on account of exigencies of advent of the GST regime which compelled the assessee to migrate to and obtain GST Registrations which rendered at the same time its CST registrations ineffective. This was inadvertent and beyond its control. Appeal dismissed.

Summary

Issues:
1. Appellant's grievance against the decision of the Single Judge regarding Central Sales Tax (CST) Registration and issuance of C Forms.
2. Interpretation of the Rajasthan Goods and Services Tax Act in relation to the taxation of High Speed Diesel (HSD) and the impact of the Goods & Services Tax (GST) regime on the issuance of C Forms.
3. Comparison with a similar case before the Punjab and Haryana High Court regarding the entitlement to C Forms post-GST implementation.
4. Rejection of the special appeal by the State of Haryana against a previous decision.
5. Reliance on previous judgments by the Single Judge and other High Courts in similar cases.
6. Consideration of the impact of the GST regime on CST registrations and the inadvertent denial of C Forms.
7. Upholding the directions issued by the Single Judge and dismissing the appeal.

Analysis:
1. The appellant contested the Single Judge's decision on CST Registration and issuance of C Forms, arguing that without CST Registration, the respondent cannot claim C Forms. The Single Judge directed against issuing C Forms, leading to the appellant's grievance.

2. The case involved the interpretation of the Rajasthan Goods and Services Tax Act concerning the taxation of HSD post-GST implementation. The transition to GST regime required businesses to switch and obtain GST registration, affecting the issuance of C Forms due to the change in tax mechanisms.

3. Drawing parallels with a similar case before the Punjab and Haryana High Court, the judgment highlighted the entitlement to C Forms post-GST implementation for specific goods like natural gas. The court emphasized the impact of GST laws on inter-state sales and the continued relevance of CST Act in certain scenarios.

4. The special appeal by the State of Haryana against a previous decision was rejected, indicating consistency in judicial interpretation regarding the issuance of C Forms post-GST implementation.

5. The Single Judge's decision was influenced by previous judgments, including Hindustan Zinc Limited and Carpo Power Limited, followed by other High Courts. These rulings established a precedent for cases involving the denial of C Forms due to GST transition.

6. The impact of the GST regime on CST registrations and the inadvertent denial of C Forms due to migration to GST registrations were considered. The court acknowledged the circumstances beyond the assessee's control that led to the denial of C Forms.

7. Ultimately, the court upheld the directions issued by the Single Judge, dismissing the appeal and affirming the decision regarding the issuance of C Forms in light of the GST regime's exigencies.