Court Directs Uniform Application of Concessional Rates for High Speed Diesel Purchases

The court allowed the Writ Petition, directing the department to promptly implement the decision that concessional rates are available to dealers purchasing High Speed Diesel from neighboring states through inter-state sales. The court emphasized that this decision should be applied uniformly to all pending assessments in Tamil Nadu until the appeal challenging the previous order is stayed or reversed. The judgment clarified that the benefits extend to all dealers seeking similar benefits, in line with decisions from various courts and legal provisions, without imposing any costs.

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Issues: Difficulty in obtaining 'C' forms under the provisions of the Central Sales Tax Act, entitlement to 'C' Forms for purchase of High Speed Diesel from supplies outside Tamil Nadu, pending appeal challenging the order of the learned Single Judge in the case of M/s. Ramco Cements Ltd, application of the rationale of the decision to all pending assessments, inability to download 'C' forms from websites, extension of benefit of the decision to all dealers.

Analysis:
1. The petitioner expressed difficulty in obtaining 'C' forms under the Central Sales Tax Act to avail concessional benefits for purchasing High Speed Diesel from suppliers in other states. The counsel for the petitioner referred to a previous decision in M/s Ramco Cements Ltd. v. The Commissioner of Commercial Taxes, where it was held that the concessional rate is available to dealers purchasing High Speed Diesel from neighboring states through inter-state sales. Similar decisions by other courts were also cited, supporting the assessee's position.

2. The respondent did not dispute the above position but mentioned that the State had filed an appeal challenging the order in the M/s. Ramco Cements Ltd case, which was pending before the Division Bench. The court emphasized that until the order in the Ramco Cements Ltd case is stayed or reversed, all Assessing Authorities in Tamil Nadu must apply the rationale of the decision to all pending assessments. The petitioner highlighted issues with downloading 'C' forms from websites and the authorities restricting the benefit of the decision only to parties involved in the specific case, which was deemed unacceptable.

3. Considering the circumstances and the importance of applying the decision uniformly, the court allowed the Writ Petition. It directed the department to take necessary action promptly, emphasizing that decisions by the court and other High Courts, including those confirmed by the Supreme Court, are applicable to all dealers seeking benefits, subject to legal provisions. The judgment concluded by stating that no costs were imposed, and the connected Miscellaneous petition was closed.

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