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2020 (9) TMI 936 - HC - VAT and Sales TaxBenefit of concessional rate of tax - difficulty in obtaining 'C' forms - purchase of High Speed Diesel from suppliers in other States - HELD THAT - The petitioner is entitled to the inclusion of High Speed Diesel Oil as a commodity in the registration certificate. The issue involved in the Writ Petition is squarely covered by a decision of this Court in M/S. DHANDAPANI CEMENT PRIVATE LTD., M/S. TERU MURUGAN BLUE METAL VERSUS THE STATE OF TAMIL NADU, THE PRINCIPAL COMMISSIONER COMMISSIONER OF COMMERCIAL TAXES, THE ASSISTANT COMMISSIONER (ST) , THE JOINT COMMISSIONER (ST) TERRITORIAL, THE DEPUTY COMMISSIONER (ST) 2019 (2) TMI 1850 - MADRAS HIGH COURT , wherein it was held that The Petitioner in these Writ Petitions has stated on affidavit that it is unable to download the C forms from the websites as the same stand blocked from use. Upon enquiry with the Assessing Authorities, they have been informed that the benefit of the decision in M/S. THE RAMCO CEMENTS LTD. VERSUS THE COMMISSIONER OF COMMERCIAL TAXES, THE ADDITIONAL COMMISSIONER (CT) 2018 (10) TMI 1529 - MADRAS HIGH COURT Ltd can be extended only to those dealers in that are party to the decision. This stand is unacceptable in so far as the decision of this Court as well as other High Courts, one of which has been confirmed by the Supreme Court, are decisions in rem, applicable to all dealers that seek benefit thereunder, of course, in accordance with law. The State has, after the date of the above order, filed a Writ Appeal in THE COMMISSIONER OF COMMERCIAL TAXES, CHEPAUK, CHENNAI, THE ADDITIONAL COMMISSIONER (CT) VERSUS THE RAMCO CEMENTS LTD. AND THE STATE TAX OFFICER, THE JOINT COMMISSIONER (CS) (SYSTEMS) VERSUS SUNDARAM FASTENERS LIMITED 2020 (3) TMI 450 - MADRAS HIGH COURT challenging the decision in the case of Ramco Cements that has been considered and dismissed by a Division Bench of this Court. Mrs.G.Dhanamadhri, submits that the State intends to challenge the order in Writ Appeal by way of a Special Leave Petition. As on date, the order in Writ Appeal is final, and following the rationale thereof, the Writ Petition is allowed.
Issues:
- Entitlement to 'C' Forms for purchase of High Speed Diesel from suppliers outside Tamil Nadu to avail concessional benefit of tax. - Validity of the decision in the case of M/s. Ramco Cements Ltd regarding the entitlement to registration under the CST Act. - Challenge by the State against the decision in the Writ Appeal. - Inclusion of 'High Speed Diesel Oil' as a commodity in the registration certificate. Issue 1: Entitlement to 'C' Forms for purchase of High Speed Diesel The petitioner, a dealer, sought 'C' Forms under the Central Sales Tax Act, 1956 to avail a concessional rate of tax for purchasing High Speed Diesel from suppliers in other states. The court referred to a decision in the case of M/s. Ramco Cements Ltd, where it was held that the benefit of the concessional rate is available to dealers purchasing High Speed Diesel from neighboring states through inter-state sales. Various other court decisions were cited, supporting the entitlement of dealers to seek this benefit. The court directed all assessing authorities in Tamil Nadu to apply the rationale of the decision to pending assessments, emphasizing that the benefit applies to all dealers seeking it, not just those party to a specific case. Issue 2: Validity of the decision in the case of M/s. Ramco Cements Ltd The State filed a Writ Appeal challenging the decision in the case of Ramco Cements Ltd, which was dismissed by a Division Bench. The court emphasized that the liability to pay tax on the purchase of goods is an independent obligation of the purchasing dealer under the CST Act. It clarified that even dealers not liable to pay tax under the Act as sellers can obtain registration under the Act for purchasing goods in inter-state trade. The court rejected the contention that dealers had lost their entitlement to registration under the CST Act, emphasizing that the scope of the Act and the right to purchase goods at a concessional rate remained intact despite amendments to the definition of 'goods'. Issue 3: Challenge by the State against the decision in the Writ Appeal The State expressed its intention to challenge the decision in the Writ Appeal through a Special Leave Petition. However, as of the current date, the decision in the Writ Appeal is final, and the court allowed the petitioner's request for the inclusion of 'High Speed Diesel Oil' as a commodity in the registration certificate. The petitioner was granted the issuance of 'C' Forms as a consequence of this decision. In conclusion, the judgment addressed the entitlement of dealers to 'C' Forms for purchasing High Speed Diesel, upheld the validity of the decision in the case of M/s. Ramco Cements Ltd regarding registration under the CST Act, and allowed the petitioner's request for the inclusion of 'High Speed Diesel Oil' in the registration certificate. The State's challenge against the decision in the Writ Appeal was dismissed, and the court directed the authorities to permit the online downloading of 'C' Forms for inter-state purchases of specified commodities.
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