9911796707
TMI Blog2024 (8) TMI 989X X X X Extracts X X X X X X X X Extracts X X X X ..... interfere in these special leave petitions.' Thus, the petitioner would be entitled for issuance of C Form in respect of natural gas purchased by the petitioner from the oil company in Gujarat and used in their manufacturing activities as also in generation of electricity at captive power plant. The petition is allowed. - G. S. KULKARNI FIRDOSH P. POONIWALLA, JJ. For the Petitioner : Mr. Sriram Sridharan,. For the State : Smt. Jyoti Chavan, Addl., G.P. a/w Smt. Rita Joshi, AGP. For the Respondent No. 3: Mr. Mohamedali M. Chunawala,. ORAL JUDGMENT (PER G. S. KULKARNI, J.) 1. These are two petitions wherein similar reliefs are prayed by the respective petitioners, although their manufacturing activities are distinct. Writ Petition No. 932 of 2018 2. The petitioner is involved in the manufacture and sale of oleo-chemicals and personal care products which involve inter-state purchase of natural gas from Hazira, Gujarat. The purchased natural gas is either utilized for the generation of electricity or as an input in the manufacture / processing of oleochemicals. 3. The petitioner possessed registration certificates for the period post 2005 under the Maharashtra Value Added Tax Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is hence contended by the petitioner that with effect from 1 July 2017, on account of the usage of the term means in Section 2 (d), the meaning of the term goods was restricted to the six items enumerated in the said provision, and as a matter of policy, the said six items were kept outside the purview of GST legislations and continued to be a subject of the CST Act and the various VAT legislations of the States. 8. It is contended that Trade Circular No. 37T of 2017 dated 24 August, 2017 was issued by virtue of which, the existing MVAT and CST registrations of all the dealers who were not involved in the sale of any of the six items enumerated in Section 2 (d) of the CST Act were deemed to be cancelled from 30 June, 2017. It is also contended that the dealers who continued to sell any of the six items enumerated, such as restaurants (selling alcohol for human consumption) and petrol pumps (selling motor spirit and high speed diesel), were allowed to continue their registrations. It is hence, contended that as a consequence of Circular No. 37T of 2017 dated 7 November 2017, the usage of the term goods as defined under Section 8 (3) (b) of the CST Act, would have the same meaning as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, the initial prayers as made by the petitioner, are not being pressed by the petitioner. The averments to this effect are incorporated by the petitioner by an amendment to the petition and more particularly in paragraph 21A to 21F, so that the correct position in regard to these circulars be placed on record. As fairly stated by Mr. Shriram Sridharan, learned Counsel for the petitioner, what would remain for adjudication, is prayer clause (cc1) and (cc2) incorporated by an amendment to the petition. Such prayers read thus: (cc1) that this Hon ble Court be pleased to issue a writ of Mandamus or a Writ in the nature of Mandamus or any other appropriate Writ or order or direction under Article 226 of the Constitution of India (i) declaring that the Petitioner is eligible to issue declarations in C-Forms to its sellers for the inter-State purchase of natural gas which is consumed by the Petitioner in the manufacture of commodities no longer defined as goods w.e.f. 01.07.2017 in Section 2 (d) of the Central Sales Tax Act, 1956; (ii) ordering and directing the Respondents themselves, their officers and subordinates to issue C Forms to the Petitioner for the inter-State purchase of nat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aim within twelve weeks of the same being made by the petitioner in writing and the petitioner furnishing the requisite documents/form. 15. A similar view was taken by the High Court of Jharkhand in the case Tata Steel Ltd. Vs. The State of Jharkhand Ors. 2019 SCC OnLine Jhar 1255. The relevant observations read thus: 25. Having heard the learned counsels for both sides and upon going through the record, we find that only question that has to be decided in these batch of cases is whether the reasoning given by the State Government in its notification dated October 11, 2017, for denying the issuance of form C to the dealers with respect to all the items included in the definition of goods given in section 2 (d) of the CST Act, that the dealers who are not selling their end-products which are among the aforesaid six goods, i.e., petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas, aviation turbine fuel and alcoholic liquor for human consumption, are no more liable to tax under the JVAT Act and accordingly, their registration under section 7(2) of the CST Act as well, have come to an automatic end, or have become invalid, can be said to be a valid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct. We also find that the registration of a dealer under section 7(2) of the CST Act is not subject to any liability of the dealer to pay the tax or not, rather as laid down by the honourable apex court in Commissioner of Sales Tax, M. P. v. Madhya Bharat Papers Ltd. [2000] 117 STC 547 (SC) ; (2000) 2 SCC 15, the dealers are entitled to continue to be registered under section 7(2) of the Act, irrespective of the fact whether they are liable to pay any tax to State or not. 16. We are informed at the bar that both the above decisions i.e. the decision of the Punjab Haryana High Court and the decision of the High Court of Jharkhand were the subject matter of consideration of the Supreme Court in the case of The Commissioner of Commercial Taxes Anr. Vs. The Ramco Cements Ltd. SLP(C)No.15785-15788 OF 2020 wherein the Supreme Court affirmed the view taken by both High Courts. The Supreme Court observed that nine High Courts have taken a similar view as also prior thereto a similar decision of the High Court of Rajasthan was affirmed by the Supreme Court in dismissing a Special Leave Petition. The relevant observations of the Supreme Court read thus: Heard learned counsel for the parties ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ON NO. 2923 OF 2019 21. Insofar as this petition is concerned, it is fairly stated by the learned Counsel for the parties that the same would stand covered in view of our aforesaid decision, as also the issues would stand covered by the decision of the Supreme Court in The Ramco Cements Ltd. (supra). 22. For the reasons as recorded by us in deciding Writ Petition No. 932 of 2018, we allow this petition in terms of prayer clause (a). a) that this Hon ble Court be pleased to issue a writ of Mandamus or a Writ in the nature of Mandamus or any other appropriate Writ or order or direction under Article 226 of the Constitution of India (i) declaring that the Petitioner is eligible to issue declarations in C-Forms to its sellers for the inter-State purchase of natural gas which is consumed by the Petitioner in the manufacture of commodities no longer defined as goods w.e.f. 01.07.2017 in Section 2 (d) of the Central Sales Tax Act, 1956; and (ii) ordering and directing the Respondents themselves, their officers and subordinates to issue C Forms to the Petitioner for the inter-State purchase of natural gas which is consumed by the Petitioner in the manufacture of commodities no longer defin ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
