Central Sales Tax Exemption Remains Valid Without C-Forms for Prior Investments Under Section 8(5)

The HC ruled that the notification dated 31-10-2006, which made production of C-Forms mandatory for CST exemptions under Section 8(5), would not apply retrospectively to the petitioner company. Following the Supreme Court's decision in Prism Cement Limited, the court held that such restrictions operate prospectively and cannot affect absolute exemptions granted prior to the amendment. Since the petitioner had been granted exemption from 07-11-1997 (having invested over Rs. 550 crores in an Integrated Steel Plant), the mandatory C-Form requirement introduced on 10-05-2002 would not apply to them. The petitioner remains entitled to exemption benefits without C-Form submission until 17-04-2013 as originally granted. .....

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