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2020 Supreme(Mad) 1990
HIGH COURT OF JUDICATURE AT MADRAS
ANITA SUMANTH, J.
M/s. Uma Blue Metals Rep. by its Partner K. Raamamohan – Appellant
Versus
The Principal Commissioner and Commissioner of Commercial Taxes Ezhilagam Chepauk Chennai & Others – Respondents
Writ Petition No. 13132 of 2020 & WMP. No.16259 of 2020
Decided On : 22-09-2020
For the Petitioner:P. Rajkumar, Advocate
For the Respondents:G. Dhana Madhri, Government Advocate
The main legal point established in the judgment is that dealers who purchase High Speed Diesel from neighbouring States by way of inter-state sales are entitled to the benefit of the concessional rate and the use of 'C' Forms, and have the right to obtain registration under the provisions of the CST Act.
Headnote:
Central Sales Tax - Writ Petition - Central Sales Tax Act, 1956, Section 8(3)(b) - The court held that the benefit of the concessional rate is available to dealers who purchase High Speed Diesel from neighbouring States by way of inter-state sales. The court also confirmed the right of purchasing dealers to obtain registration under the provisions of the CST Act and to continue with it, rejecting the contention raised by the Revenue. The court directed the State not to restrict the use of 'C' Forms for inter-State purchases of six commodities and to permit online downloading of such forms to registered dealers.
Fact of the Case:
The petitioner, a dealer, filed a Writ Petition seeking the issuance of Writ of Mandamus to direct the respondents to issue 'C' forms under the Central Sales Tax Act, 1956 for the purchase of High Speed Diesel Oil from suppliers in other States. The issue involved in the Writ Petition was whether the petitioner was entitled to 'C' Forms for the purchase of High Speed Diesel from supplies outside Tamil Nadu to avail concessional benefit of tax.
Finding of the Court:
The court found that the benefit of the concessional rate is available to dealers who purchase High Speed Diesel from neighbouring States by way of inter-state sales. The court also confirmed the right of purchasing dealers to obtain registration under the provisions of the CST Act and to continue with it, rejecting the contention raised by the Revenue. The court directed the State not to restrict the use of 'C' Forms for inter-State purchases of six commodities and to permit online downloading of such forms to registered dealers.
Issues: The issues involved in the case were the entitlement of the petitioner to 'C' Forms for the purchase of High Speed Diesel from supplies outside Tamil Nadu to avail concessional benefit of tax, and the right of purchasing dealers to obtain registration under the provisions of the CST Act.
Ratio Decidendi: The court held that the benefit of the concessional rate is available to dealers who purchase High Speed Diesel from neighbouring States by way of inter-state sales. The court also confirmed the right of purchasing dealers to obtain registration under the provisions of the CST Act and to continue with it, rejecting the contention raised by the Revenue.
Final Decision: The Writ Petition was allowed, and the petitioner was entitled to the inclusion of 'High Speed Diesel Oil' as a commodity in the registration certificate. The court directed the necessary action to be taken by the department, and the request of the petitioner for issuance of 'C' Forms was allowed. The State was directed not to restrict the use of 'C' Forms for inter-State purchases of six commodities and to permit online downloading of such forms to registered dealers.
JUDGMENT :
(Prayer: Petition filed under Article 226 of the Constitution of India praying for the issuance of Writ of Mandamus, To direct the respondents to issue C forms under the Central Sales Tax 1956 read with the Central Sales Tax(Registration and Turnover) Rules 1957 to the petitioner for the purchase of High Speed Diesel Oil from the suppliers in other States in view of the recent order dated 13.7.2020 passed by the Honourable Madras High Court in the case of M/s. Ram Blue Metals in W.P.No.9142/2020.)
1. Heard Mr.P.Rajkumar, learned counsel for the petitioner and Ms.G.Dhanamadhri, learned Government Advocate for the respondents.
2. The petitioner in this Writ Petition is dealer. Ms.Dhanamadhri, fairly submits that the issue involved in this Writ Petition is squarely covered by a decision of this Court in W.P.Nos.4173 and 4176 in the case of M/s. Dhandapani Cement Private Limited Vs. The State of Tamil Nadu, wherein the identical issue as arising before me has been considered and decided by me in the following terms:
'Mr.V.Haribabu, learned Additional Government Pleader (Taxes) takes notice for the respondents. By consent of both sides, final orders are passed in these Writ Petitions even at the stage of admission.
2. The petitioners in the Writ Petitions have expressed their difficulty in obtaining 'C' forms under the provisions of the Central Sales Tax Act, 1956 in order to avail concessional benefit of tax for purchase of High Speed Diesel from suppliers in other States.
3. At the outset, Mr.P.Rajkumar, learned counsel for the petitioner and Mr.V.Haribabu, learned Additional Government Pleader for the revenue agree that the issue in regard to entitlement to 'C' Forms for purchase of High Speed Diesel from supplies outside Tamil Nadu, to enable the dealers to seek a concessional rate of tax, is covered in favour of the assessee by a decision of this Court in M/s Ramco Cements Ltd. V. The Commissioner of Commercial Taxes (W.P.Nos.19460 of 2018) dated 26.10.2018 in a batch of over fifty (50) Writ Petitions.
4. A learned Single Judge of this Court in considering the issue held categorically that the benefit of the concessional rate is available to dealers who purchase High Speed Diesel from neighbouring States by way of inter-state sales. Reference is made to the decisions of other Courts that have considered an identical issue, holding the same in favour of the assessee. In fact, the decision of the Punjab and Haryana High Court has been carried to the Supreme Court in special leave and has been confirmed in State Of Haryana & Others Vs. Caparo Power Ltd. & Others in Special Leave Petition (Civil No. 20572 of 2018). The issue has also been considered in Hindustan Zinc Limited & Several Others Vs. The State of Rajasthan & others (S.B.Civil Writ Petition No.5506/2018 dated 18.05.2018) and Shree Raipur Cement Plant (A unit of Shree Cement Limited) Vs. State of Chhattisgarh, Finance department (Tax Division) (W.P.(T) No.83 of 2018 dated 18.05.2018) and held in favour of the assessee.
5. Mr.Haribabu does not dispute the above position. However, he maintains that the State proposes to challenge the order of the learned Single Judge in the case of M/s. Ramco Cements Ltd (supra) though no such appeal has been filed thus far.
6. In such circumstances, till such time the order of this court in the case of M/s Ramco Cements Ltd (supra) is either stayed or reversed it is incumbent upon all Assessing Authorities within the State of Tamil Nadu to apply the rationale of the decision to all pending assessments. The Petitioner in these Writ Petitions has stated on affidavit that it is unable to download the ‘C’ forms from the websites as the same stand blocked from use. Upon enquiry with the Assessing Authorities, they have been informed that the benefit of the decision in M/s Ramco Cements Ltd can be extended only to those dealers that are party to the decision. This stand is unacceptable in so far as the decision of this Court as well as other
