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TMI Blog2023 (11) TMI 815X X X X Extracts X X X X X X X X Extracts X X X X ..... al Sales Tax Act and have paid the tax accordingly. In the present case, the petitioner's supplier also paid the tax under the CST Act and their assessment have been pending for the reason that they have not furnished Form 'C' by the petitioner due to the reason that the respondents have blocked the portal. As contended by the learned Additional Advocate General, the fact remains that no decision has been taken by the GST Council with regard to whether ENA has to be included in the CST regime or excluded. All the States have been consistently following CST and taxes also been paid accordingly. In view of the fact that in the recent 52nd GST Council Meeting held on 07.10.2023, a decision was taken to keep the ENA used for manu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to generate Form C declaration under the Central Sales Tax Act, 1956 for their purchase of Extra Neutral Alcohol (ENA) effected from outside the State of Tamil Nadu. 2. The case of the petitioner is that they are engaged in manufacture of Alcoholic Liquor in their factory at Vazhudareddy Village, Villupuram. The primary input required for manufacture of Alcoholic Liquor is Extra Neutral Alcohol (ENA). It is the contention of the petitioner that they have procured ENA from various suppliers located in other states who have supplied ENA by charging CST @ 2% against Form 'C' . Prior to introduction of GST (before July, 1 2017), these suppliers had effected sale to the petitioner against Form 'C' by charging CST @ 2% and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mstances, the respondent department should not decline to issue of Form 'C', since the petitioner is required to prove that the declaration in Form 'C' has been furnished to the selling dealers in terms of Section 8 of the CST Act, 1956 and on failure to do so, the petitioner would face penal consequences. 3(ii) The learned counsel further contended that in the case of an inter state sale, even before determining whether the buyer has issued Form 'C' declaration correctly or not, it would be the responsibility and obligation of the selling dealer to charge the correct tax and the correct rate of tax. Even assuming that ENA should be subjected to GST and not CST, still that question would primarily arise in the ori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e stand of the Government of Tamilnadu expressed by the Member of the State, in its 43rd GST Council Meeting held on 28.05.2021 which is recorded in the Minutes of the Meeting in Clause 17.15 wherein the Member of the Tamil Nadu State expressed that if ENA was kept outside the purview of GST, the State will lose. However, it is stated that in solidarity with fellow states and for state's rights, they would prefer that it was kept out of GST and left to states . Therefore, the stand of the State is to keep the ENA outside the purview of GST and prayed this Court to pass appropriate orders. 5. Heard the learned counsel appearing for the petitioner as well as the Additional Advocate General appearing for the respondents and perused the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vocate General, the fact remains that no decision has been taken by the GST Council with regard to whether ENA has to be included in the CST regime or excluded. All the States have been consistently following CST and taxes also been paid accordingly. 8. In view of the fact that in the recent 52nd GST Council Meeting held on 07.10.2023, a decision was taken to keep the ENA used for manufacture of alcoholic liquor for human consumption to keep the same outside the purview of GST, this Court is of the considered view that it would be appropriate to direct the respondents to issue Form 'C' from 01.07.2017 to till date for all the purchases made by the petitioner from outside the State or inside the State and further, this Court also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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