2020 (3) TMI 827 - HC - VAT and Sales Tax

Question arisen for consideration is whether the meaning can be expanded to include manufacture of otherwise goods for purposes of petitioner obtaining From C on concessional purchase of HSD? By consent list on 26th March, 2020 under same heading.

Summary

Issues involved:
1. Interpretation of the Central Sales Tax Act, 1956 regarding the entitlement of a registered dealer to obtain Form "C" for specific goods.
2. Whether the meaning of goods under the amended clause (d) in section 2 of the Act can be expanded to include the manufacture of other goods for the petitioner to obtain Form "C" for concessional purchase of High-Speed Diesel (HSD).

Detailed Analysis:
1. The petitioner challenged a letter dated 6th May, 2019, which stated that a registered dealer could obtain Form "C" for the purchase of specific goods and for use in certain industries such as telecommunications, mining, and electricity generation. The petitioner, M/s Steel Authority of India Ltd., was informed that they may not get Form "C" for purchasing HSD for manufacturing iron and steel but could do so for using HSD in electricity generation, including captive power plants. The question at hand was the interpretation of the provisions of the CST Act in this context.

2. The petitioner's reliance was placed on a judgment of the High Court of Jharkhand in a similar matter. The revenue pointed out that the petitioner had mentioned in a previous letter that HSD was mainly used in their steel plant for internal movement and in heavy earth-moving equipment. The amended clause (d) in section 2 of the Act defines goods as six specific items. The primary issue for consideration was whether this definition could be expanded to include the manufacture of other goods for the petitioner to be eligible for obtaining Form "C" for concessional purchase of HSD.

The case was adjourned for further submissions by the petitioner's advocate. The judgment highlighted the importance of interpreting the provisions of the CST Act to determine the entitlement of registered dealers to obtain Form "C" for specific goods and industries as per the amended clauses.