2021 (2) TMI 332 - HC - VAT and Sales Tax

Restriction on use of 'C' Forms for the inter-state purchases of six commodities - circular dated 05.09.2019 - HELD THAT - Since as on date, the order made in the writ appeal is final, the writ petition has to be necessarily allowed. It is accordingly allowed. The petitioner is entitled to the inclusion of 'High Speed Diesel Oil' as a commodity in the registration certificate. Let this exercise be carried out within a period of four (4) weeks from the date of uploading of this order. The request of the petitioner for issuance of 'C' Forms is allowed as a consequence thereof. Petition allowed.

Summary

Issues:
1. Interpretation of circular dated 05.09.2019 by Additional Chief Secretary/Commissioner of Commercial Tax, Chennai.
2. Application of judicial pronouncements on the case.
3. Consideration of the right to sell and purchase goods under the CST Act.
4. Validity of the circular letter of the Commissioner dated 31.05.2018.
5. Inclusion of 'High Speed Diesel Oil' as a commodity in the registration certificate.

Detailed Analysis:
1. The judgment involved the interpretation of a circular dated 05.09.2019 issued by the Additional Chief Secretary/Commissioner of Commercial Tax, Chennai. The petitioner's prayer was opposed based on this circular, but the court found that reliance on the circular was misplaced due to subsequent judicial pronouncements.

2. The court referred to a previous judgment from October 2020 where a learned Judge of the same Court considered an identical prayer. The judgment highlighted the importance of not denying the right to purchase goods under existing Registration Certificates based solely on the criteria of selling those goods. It emphasized that such denial would lead to an invidious classification in violation of Article 14 of the Constitution of India.

3. The judgment also addressed the issue of the right to sell and purchase goods under the CST Act. It cited a Division Bench decision that directed the State and Revenue Authorities not to restrict the use of 'C' Forms for inter-state purchases of certain commodities at concessional rates of tax. The circular letter of the Commissioner dated 31.05.2018 was quashed, and the authorities were directed to permit online downloading of such declarations in 'C' Forms.

4. The court ultimately allowed the writ petition, noting that the order made in the writ appeal was final. The petitioner was granted the inclusion of 'High Speed Diesel Oil' as a commodity in the registration certificate, with instructions for this inclusion to be carried out within a specified timeframe. The request for issuance of 'C' Forms was also allowed as a consequence of this decision, with no costs imposed. The connected miscellaneous petition was closed as a result of the judgment.