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2020 Supreme(Mad) 1725
IN THE HIGH COURT OF JUDICATURE AT MADRAS
ANITA SUMANTH, J.
M/s. NTC Infra & Engineering Private Limited Represented by its Director S. Muthusamy - Appellant
Versus
The Assistant Commissioner (ST) & Others - Respondent
W.P. No. 12956 of 2020 WMP. Nos. 16031 & 16378 of 2020
Decided on : 21-09-2020
Advocate Appeared:
For the Appellant :P. Rajkumar, Advocate.
For the Respondents:Dhanamadhri, Government Advocate.
The main legal point established is the entitlement of dealers to 'C' Forms for the purchase of specified commodities from other states at a concessional rate of tax, as well as the independent right of any dealer to obtain registration under the CST Act.
Headnote:
C Forms - High Speed Diesel - Central Sales Tax Act 1956 - Summary: The court considered the entitlement to 'C' Forms for the purchase of High Speed Diesel from suppliers in other states, allowing the benefit of concessional rate of tax. The court referenced decisions of other courts and held that the benefit of concessional rate is available to dealers making inter-state purchases. The court also highlighted the independent right of any dealer to obtain registration under the CST Act, rejecting the contention that the right to purchase goods at concessional rates can be taken away. The court directed the state not to restrict the use of 'C' Forms for inter-state purchases of specified commodities and to permit online downloading of such forms to dealers.
Fact of the Case:
The petitioner, a dealer, sought inclusion of High Speed Diesel in the CST certificate of registration and issuance of 'C' Forms for its purchase from suppliers in other states. The court found that the issue was covered by a previous decision and allowed the writ petitions, directing necessary action by the department.
Finding of the Court:
The court found that the benefit of concessional rate of tax for inter-state purchases of High Speed Diesel was available to dealers, rejecting the contention that the right to purchase goods at concessional rates can be taken away.
Issues: Entitlement to 'C' Forms for purchase of High Speed Diesel, inclusion of High Speed Diesel in the registration certificate, and the challenge by the state in a Writ Appeal.
Ratio Decidendi: The court held that the benefit of concessional rate is available to dealers making inter-state purchases and rejected the contention that the right to purchase goods at concessional rates can be taken away.
Final Decision: The court allowed the writ petitions, directing the inclusion of High Speed Diesel as a commodity in the registration certificate and permitting the issuance of 'C' Forms for its purchase. The state's challenge in a Writ Appeal was also mentioned.
JUDGMENT :
(Prayer: Writ Petition filed under Article 226 of the Constitution of India praying Writ of Certiorarified Mandamus to call for the impugned proceedings of the first respondent (Available in the Ctd. tn. govt. in. portal) in Acknowledgement No. 50200020683639 dated 10.8.2020 and quash the same and for a direction to the respondents to include High Speed Diesel in the CST certificate of registration of the petitioner as an commodity eligible for purchase by the petitioner for use in their mining activity and for a further direction to issue C forms under the Central Sales Tax Act 1956 read with the Central Sales Tax (Registration and Turnover) Rules 1957 to the Petitioner for the purchase of High Speed Diesel from the suppliers in other States in the light of the law laid down by the Hon’ble Division Bench of this Court in the case of Commissioner of Commercial Taxes Chennai Vs. The Ramco Cements Ltd. in W.A.Nos.3403, 3413, 3414 and 2812 of 2019 by an order dated 9.3.2020.)
1. Heard Mr.P.Rajkumar, learned counsel for the petitioner and Mrs.Dhanamadhri, learned Government Advocate for the respondents.
2. The petitioner in the Writ Petition is a dealer. Mrs.G.Dhanamadhri, fairly submits that the issue involved in the 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
