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TMI Blog2018 (11) TMI 286X X X X Extracts X X X X X X X X Extracts X X X X ..... r from the supplier/ dealer in the State of Gujarat. This, issuance of 'C' Forms entitles the Petitioner to concessional rate of Central Sales Tax at 2%. 3. The natural gas purchased/ obtained by the Petitioner from the dealers in State of Gujarat is utilized for manufacture of chemicals and also for the generation of electricity. It is the case of the Petitioner that in terms of the amended definition of goods in Section 2(d) of the Act, w.e.f. 1st July, 2017 read with Section 8 of the Act, it is entitled to the benefit of lower tax at 2% under the Act on the entire purchase of natural gas. However, for the purposes of interim relief, the claim is restricted to the extent the purchased natural gas is used for generation of electri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... denied on the natural gas purchased from the State of Gujarat only because it is partly used in manufacture of goods not entitled to concessional rate of tax. 6. Prima facie, we are of the view that, where it possible to bifurcate and/or measure the use of natural gas in generation of power, the benefit of 'C' Form to the extent of its user in generation of electricity, is to be granted. This on facts has been found to be possible by the report submitted by Mr. Vitthal S. Marwade, Deputy Commissioner of Sales Tax. In fact, he has recommended/ proposed grant of 'C' Form to the extent natural gas is used in generation of electricity. No bar in the Act or the Rules framed thereunder, has been shown to us, which would deprive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Officer, Ernakulam, 1993 page 347, as well as the decisions of other Courts in Chanda Paints (Madras) Ltd., v/s. Commercial Tax Officer 61 STC 335, Dawar Brothers v/s. State of Madhya Pradesh (M.P.) 44 STC 286, T.V.P. Nambair v/s. State of Madras (Writ Petition Nos. 1379 and 1380 of 1967), all relied upon in the Colorgraph (supra). As observed in the above cases, in case, it is found that the natural gas obtained/ purchased from the dealer in the State of Gujarat are not used for the intended purposes namely - generation of power to the extent declared by the Petitioner, then it would be open to the Respondent to invoke the provisions of the Act and the Rules framed thereunder for the purposes of imposing penalties. 8. The grant of inte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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