2020 (3) TMI 11 - HC - VAT and Sales Tax

Deletion of High Speed Diesel from the CST registration - the High Speed Diesel purchased by them at the concessional rate of tax for consumption in manufacturing process were found to be used for the purposes other than the manufacturing purpose - contention of the learned counsel for the petitioners was that the deletion of High Speed Diesel from the CST registration of the petitioners was ordered without any notice to them and without there being any empowering provision in the Act to that effect - HELD THAT - In the facts of this case as stated above since the appeals filed by the petitioners against the penalty imposed under Section 10-A of the Act is still pending before the Appellate Authority we are of the considered view that it would be appropriate that even the question of deletion of High Speed Diesel from the CST registration of the petitioners be considered and decided by the Appellate Authority on merits. The writ applications are disposed off with the direction that in the appeals of the petitioners pending against the penalty imposed under Section 10-A of the Act the Appellate Authority shall also consider and adjudicate the question of deletion of High Speed Diesel from the CST registration of the petitioners - application disposed off.

Summary

Issues:
1. Impugned orders directing deletion of 'High Speed Diesel' from CST registration and imposing penalty under Section 10-A of the Central Sales Tax Act.
2. Validity of deletion of 'High Speed Diesel' without notice and empowering provision.
3. Stay of operation of impugned orders.
4. Appropriate authority to consider deletion of 'High Speed Diesel' from CST registration.

Analysis:
1. The petitioners challenged impugned orders dated 29.12.2015, directing deletion of 'High Speed Diesel' from their CST registration and imposing penalty under Section 10-A of the Central Sales Tax Act. The petitioners contended that they only challenged the penalty imposition in their appeals, not the deletion of 'High Speed Diesel'.

2. The petitioners argued that the deletion of 'High Speed Diesel' was ordered without notice and lacked empowering provision. However, the State contended that notices were issued to the petitioners for deletion. The Court noted that the challenge to notices was based on disputed facts, to be resolved by the appropriate authority and not the Writ Court.

3. An ad-interim order of stay was granted on 10th August 2016, staying the operation of impugned orders affecting the deletion of 'High Speed Diesel' from CST registration until further proceedings.

4. The Court decided that the Appellate Authority, where the petitioners' appeals against the penalty were pending, should also consider and decide on the deletion of 'High Speed Diesel' from CST registration. Both parties were directed to present necessary facts before the Appellate Authority for consideration.

5. The protection granted to the petitioners by the stay order was to continue until the final disposal of their appeals. The Appellate Authority was instructed to expedite the appeal process without unnecessary delays.

In conclusion, the writ applications were disposed of with directions for the Appellate Authority to consider the deletion of 'High Speed Diesel' from CST registration along with the pending penalty appeals, ensuring a fair and expeditious resolution of the matter.