2018 (9) TMI 1860 - HC - VAT and Sales Tax

High Court orders 'C' forms post-GST Act, 2017, for mining diesel, grants refunds.

Asi Industries Limited Formerly Known As Associated Stone Industries Kotah Limited Versus Union Of India, The State Of Rajasthan, The Commissioner, The Commercial Taxes Officer, Indian Oil Corporation Limited.

The High Court allowed the writ petition challenging the non-issuance of 'C' forms post-GST Act, 2017 implementation. Relying on a previous judgment ... Non-issuance of C-Forms - HELD THAT:- The issue decided in the case of HINDUSTAN ZINC LIMITED, SOUTH WEST MINING LTD., KHETAN BUSINESS CORPORATION PVT. LTD., ARORAS JK NATURAL MARBLES LIMITED VERSUS STATE OF RAJASTHAN THROUGH THE PRINCIPAL SECRETARY, DEPARTMENT OF FINANCE, SECRETARIAT, JAIPUR, THE COMMISSIONER, COMMERCIAL TAXES DEPARTMENT, THE COMMERCIAL TAXES OFFICER [2018 (5) TMI 1871 - RAJASTHAN HIGH COURT] where it was held that the respondents are liable to issue `C' Forms in respect of the High Speed Diesel procured for mining purposes through interstate trade - petition allowed - decided in favor of petitioner. Issues:Challenge to non-issuance of 'C' form post-GST Act, 2017 implementation.Analysis:The High Court heard a writ petition challenging the respondent's failure to issue a 'C' form after the GST Act, 2017 came into effect. The petitioner sought a directive for the issuance of the 'C' form under the Central Sales Tax, 1956. The petitioner's counsel referred to a previous judgment in a similar case and urged the court to decide the matter accordingly. The respondent's counsel, however, was unsure about the status of any appeal against the previous judgment. The Court noted that a similar issue had been resolved at the Principal Seat, Jodhpur, in a case involving Hindustan Zinc Limited, where directions were given to issue 'C' forms for High Speed Diesel used in mining through interstate trade.The Court referred to the judgment in the Hindustan Zinc Limited case, where it was held that the respondents must issue 'C' forms for High Speed Diesel used in mining through interstate trade. If petitioners had to pay extra due to the wrongful refusal of 'C' forms, they were entitled to refunds or adjustments from the authorities who collected the excess tax. The concerned authorities were directed to process such claims within twelve weeks of receipt. The present writ petition was allowed based on the principles established in the Hindustan Zinc Limited case. The Court emphasized that any decision by a Division Bench or Higher Court would be binding on the parties involved.