Absolute Tax Exemption Under CST Act Remains Valid Despite Later C-Form Requirement Under Section 8(5)

The HC ruled that the notification dated 31-10-2006, requiring C-Form production for tax exemption under Section 8(5) of the CST Act, would not apply to the petitioner company. The petitioner had been granted absolute exemption from tax liability effective 22-9-1996 pursuant to a 1993 notification after investing over Rs. 1,000 crores in an Integrated Steel Plant. Following Supreme Court precedent in Prism Cement Limited, the HC determined that the 2002 amendment to Section 8(5) making C-Form production mandatory applies prospectively only and cannot retrospectively affect previously granted absolute exemptions. The petitioner's exemption remains valid as per the original 1993 notification until 30-6-2017 when the GST regime commenced. .....

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