2021 (2) TMI 744 - HC - VAT / Sales Tax

Direction to issue C-Forms in respect of the High Speed Diesel procured/purchased by the Petitioner Company from the Oil Companies - seeking permission to procure the High Speed Diesel through the inter-State purchase under the Concessional CST rate - HELD THAT - The issue involved in the present writ petition is no more res integra in view of the judgment passed by the Division Bench of this Court in THE STATE OF RAJASTHAN, THROUGH ITS PRINCIPAL SECRETARY, DEPARTMENT OF FINANCE, JAIPUR, THE COMMISSIONER, COMMERCIAL TAXES DEPARTMENT, GOVERNMENT OF RAJASTHAN, JAIPUR AND THE COMMERCIAL TAXES OFFICER, COMMERCIAL TAXES DEPARTMENT, SPECIAL CIRCLE-II, KOTA VERSUS ASI INDUSTRIES LIMITED, (FORMERLY KNOWN AS ASSOCIATED STONES INDUSTRIES KOTAH LIMITED) , UNION OF INDIA, NEW DELHI AND INDIAN OIL CORPORATION LIMITED 2019 (11) TMI 1061 - RAJASTHAN HIGH COURT , which has been followed by this Court as well as the other Coordinate Benches of this Court where it was 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. The present writ petition is allowed and the respondents are held liable to issue C-Form in the purchase of High Speed Diesel procured by the petitioner-company for mining purposes from inter-State trade - In the event of the petitioner having paid any amount on account of respondents wrongfully refusal to issue C-Form, the petitioner would be entitled to refund/adjustment of the same from the concerned authorities and collect the taxes. The concerned authorities are directed to process the claim within 12 weeks from today. Petition allowed.

Summary

Issues:
Petitioner seeking issuance of C-Forms for High Speed Diesel, Concessional CST rate, Guidelines for C-Form issuance, Direction to oil companies, Refund/adjustment for wrongful refusal.

Analysis:
The petitioner filed a writ petition seeking C-Forms for High Speed Diesel purchased as raw material for manufacturing activities at a concessional CST rate. The issue was previously addressed in a judgment by the Division Bench, which has been consistently followed by this Court and other Coordinate Benches. The respondents, although opposing on merits, acknowledged the issue's precedent nature. The Division Bench in a related case observed that denial of C-Forms was due to the transition to the GST regime, rendering CST registrations ineffective, which was beyond the assessee's control.

The petitioner's counsel informed the court that the Supreme Court had dismissed the Special Leave Petition against the Division Bench's judgment. Consequently, the court allowed the writ petition, holding the respondents liable to issue C-Forms for High Speed Diesel purchased by the petitioner for mining purposes through inter-State trade. Additionally, if the petitioner incurred losses due to the wrongful refusal of C-Forms, they were entitled to refund/adjustment from the authorities, who were directed to process the claim within 12 weeks. The writ petition was allowed without costs.