High Court grants relief in Diesel Oil tax case, directs Revenue Dept to allow 'C' forms

The Madras High Court allowed two writ petitions concerning the purchase of High Speed Diesel Oil for power generation. The petitioners were previously eligible for a concessional tax rate of 2% using 'C' forms but faced issues post-GST implementation. Relying on precedents like the 'Ramco Cements matter,' the Court directed the Revenue Department to allow the petitioners to download 'C' forms for concessional tax rates. Emphasizing uniform application of decisions, the Court granted relief to the petitioners, ensuring compliance with legal precedents and timely resolution of their case.

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Issues:
Purchase of High Speed Diesel Oil for use in generation and distribution of electricity and other forms of power.

Analysis:
The judgment by the Madras High Court dealt with two writ petitions concerning the purchase of High Speed Diesel Oil for power generation. The petitioners had been buying the oil at a concessional tax rate of 2% using 'C' forms. However, after the introduction of Goods and Services Tax (GST), they were unable to download the forms as the Revenue Department blocked access, stating that post-GST implementation, such purchases were not eligible for the concessional tax rate. The legal position was established through previous judgments, notably the 'Ramco Cements matter,' where the Court allowed assessees to download 'C' forms. Another judgment in W.P.No.12520 of 2019 reiterated the application of the Ramco Cements decision until stayed or reversed. The Court emphasized that decisions like Ramco Cements apply to all dealers seeking benefits, not just parties involved in the specific case.

The Court highlighted the importance of applying the rationale of previous judgments to pending assessments within Tamil Nadu. The judgment in Southern Cotspinners Coimbatore Private Limited case underscored the need for uniform application of decisions benefiting all eligible dealers. Consequently, the instant writ petitions were allowed, directing the Revenue Department to take necessary action within 5 working days from the order's receipt. The Court's decision was in line with the trajectory of similar cases at the admission stage, ensuring timely resolution for the petitioners. Ultimately, the writ petitions were allowed without costs, ensuring compliance with the legal precedents and providing relief to the petitioners in accessing the concessional tax benefits for High Speed Diesel Oil purchases for power generation purposes.

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