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2021 (3) TMI 1175 - HC - VAT / Sales TaxConcessional rate of duty - issuance of C-forms - purchase of High Speed Diesel from suppliers in other States - HELD THAT - Issue is covered by a decision of this Court in M/S. THE RAMCO CEMENTS LTD. VERSUS THE COMMISSIONER OF COMMERCIAL TAXES, THE ADDITIONAL COMMISSIONER (CT) 2018 (10) TMI 1529 - MADRAS HIGH COURT where it was held that respondents are directed to permit these petitioners to download 'C ' forms, as has been done in the past for the purpose of purchasing petroleum products against the issuance of 'C' declaration forms. Petition allowed - decided in favor of petitioner.
Issues Involved:
1. Interpretation of provisions related to the issuance of "C" forms under the Central Sales Tax Act, 1956 for the purchase of High Speed Diesel from suppliers in other States. 2. Applicability of a previous court decision in similar cases. 3. Challenge to the decision by the State through a Writ Appeal. 4. Dismissal of Special Leave Petitions by the Supreme Court challenging the High Court's decision. Issue 1: Interpretation of Provisions for Issuance of "C" Forms: The writ petition addressed the issuance of "C" forms under the Central Sales Tax Act, 1956 for purchasing High Speed Diesel from suppliers in other States. The petitioner argued that a previous court decision supported their entitlement to these forms for availing a concessional rate of tax. The court referred to various judgments from different High Courts, including the Supreme Court, which favored the assessee's right to obtain "C" forms for inter-state purchases. The court emphasized that the benefit of concessional rates applied to dealers purchasing High Speed Diesel from neighboring states through inter-state sales. Issue 2: Applicability of Previous Court Decision: The court highlighted that the issue in the writ petition was similar to cases previously decided by the court. It referenced a decision concerning M/s Ramco Cements Ltd., where the benefit of concessional rates for inter-state purchases was upheld. The court stressed that this decision should be applied to all pending assessments until challenged or reversed. The court rejected the argument that the benefit only applied to dealers party to the specific decision, emphasizing that such judgments were applicable to all eligible dealers seeking the benefit. Issue 3: Challenge through Writ Appeal: The State attempted to challenge the court's decision through a Writ Appeal, arguing that the liability to pay tax on purchases was independent of the seller's liability under the CST Act. The Division Bench dismissed the appeal, affirming that purchasing dealers could maintain registration under the CST Act, even if not liable to pay tax as sellers. The court rejected the contention that changes in the definition of 'goods' restricted the operation of the CST Act, emphasizing the continued rights of purchasing dealers to avail concessional rates. Issue 4: Dismissal of Special Leave Petitions: Special Leave Petitions filed by the Commercial Taxes Department challenging the High Court's decision were dismissed by a three-Judge Bench of the Supreme Court. The Supreme Court's decision upheld the High Court's ruling, further supporting the rights of dealers to obtain "C" forms for inter-state purchases at concessional rates. As a result, the writ petition was allowed, with no costs imposed. This detailed analysis of the judgment provides insights into the court's interpretation of relevant legal provisions, the application of previous decisions, challenges faced by the State, and the final resolution through the dismissal of Special Leave Petitions by the Supreme Court.
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