2021 (12) TMI 129 - HC - VAT and Sales Tax

Seeking to forthwith activate registration certificate of the Petitioners on the online portal under the CST Act - seeking direction to Respondents to allow the Petitioners to file returns and generate C form declarations under the CST Act for purchase of natural gas for use in manufacture of finished products - seeking direction to Respondents to forthwith the Respondents to forthwith activate registration certificate of the Petitioners on the online portal under the CST Act - HELD THAT - The petitioners are before this Court raising an identical question of law which now stands concluded with the decision of the Apex Court rendered in case of THE COMMISSIONER OF COMMERCIAL TAXES ANR. ETC. VERSUS THE RAMCO CEMENTS LTD. ETC. 2021 (3) TMI 1184 - SUPREME COURT as well as with the decision of this Court in case of GAURAV CONTRACTS COMPANY VERSUS STATE OF GUJARAT 2019 (6) TMI 802 - GUJARAT HIGH COURT where it was held that the contention that as the petitioners are dealers who are registered under the GST Act, they cannot be registered under the CST Act, does not merit acceptance. If a dealer is dealing in goods falling within the ambit of the GST Act as well as the CST Act, it is always permissible for him to hold separate registrations under both the Acts in respect of such goods. Therefore, a dealer who is registered under the GST Act can also be registered under the CST Act in respect of commodities which fall within the ambit of the expression goods as defined under section 2(d) thereof for getting the benefit of reduced rate of tax under section 8 of the CST Act. Petition disposed off.

Issues Involved:
1. Activation of Registration Certificate under the CST Act.
2. Permission to file returns and generate C form declarations under the CST Act.
3. Authority's power to review or keep in abeyance an order under Section 7 of the CST Act.
4. Impact of the Taxation Laws (Amendment) Act, 2017 on CST registrations.
5. Compatibility of registration under both the GST Act and the CST Act.

Detailed Analysis:

1. Activation of Registration Certificate under the CST Act:
The petitioners sought a writ of mandamus directing the respondents to activate their registration certificates on the online portal under the CST Act. This issue was addressed in the context of the Apex Court's decision in "The Commissioner of Commercial Taxes & ANR vs. The Ramco Cements Ltd" and the Gujarat High Court's decision in "Gaurav Contracts Company vs. State of Gujarat." The court observed that the authority under Section 7 of the CST Act has no power to review or keep in abeyance an order once passed. The court emphasized that the notified authority must act independently without seeking guidance from higher authorities.

2. Permission to File Returns and Generate C Form Declarations:
The petitioners also sought permission to file returns and generate C form declarations for the purchase of natural gas used in manufacturing finished products. The court referenced the previous decisions, stating that there is no provision in the CST Act that automatically cancels or makes inactive the registration certificates of dealers who cease dealing in specified commodities. The court clarified that the CST Act does not provide for automatic deregistration, unlike the Gujarat Value Added Tax Act, 2003, which explicitly provides for automatic deregistration.

3. Authority's Power to Review or Keep in Abeyance an Order under Section 7 of the CST Act:
The court examined whether the authority under Section 7 of the CST Act could review or keep an order in abeyance. It was concluded that there is no power vested in the authority to review its order or keep it in abeyance. The court held that the notified authority must exercise its powers independently and cannot defer decisions for higher authority guidance. This reflects a lack of competence and is not permissible under the CST Act.

4. Impact of the Taxation Laws (Amendment) Act, 2017 on CST Registrations:
The court addressed whether the CST registrations of dealers other than those dealing in specified goods would become inactive automatically upon the amendment of the definition of goods in the CST Act by the Taxation Laws (Amendment) Act, 2017. The court found no provision in the CST Act for automatic cancellation or inactivation of registration certificates upon such amendments. It emphasized that the legislature must expressly provide for automatic cancellation if intended, which was not done in this case.

5. Compatibility of Registration under both the GST Act and the CST Act:
The court considered whether a dealer registered under the Goods and Services Tax (GST) Act could also be registered under the CST Act. It concluded that dealers dealing in commodities falling within the ambit of both the GST Act and the CST Act could hold separate registrations under both Acts. The court rejected the contention that registration under the GST Act precludes registration under the CST Act for goods specified therein.

Conclusion:
The petitions were disposed of in light of the Apex Court's decision, with the court allowing the petitioners to withdraw their petitions. The court affirmed that the issues raised had been conclusively settled by higher judicial authorities. The petitioners were granted liberty to approach the court again in case of any difficulties.

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