Court Orders Issuance of 'C' Forms for Diesel in Mining, Refusal Deemed Unauthorized, Tax Refunds Possible.

The HC ruled in favor of the petitioner, mandating the issuance of 'C' Forms for High Speed Diesel used in mining, pursuant to the CST Act. The court determined that the respondents' refusal to issue 'C' Forms was unauthorized, allowing for refund or adjustment of excess tax paid. The judgment aligns with prior rulings, including Hindustan Zinc Limited and Carpo Power Limited, affirming the petitioner's entitlement under existing legal provisions. The writ application was allowed, with the court directing compliance within twelve weeks.

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Issues:
Controversy regarding issuance of 'C' Forms for interstate trade of High Speed Diesel for mining purposes.

Analysis:
The judgment discusses the resolution of the controversy raised in the writ application based on previous adjudications. The counsel for the petitioner highlights the relevance of earlier cases like Hindustan Zinc Limited Vs. The State of Rajasthan & Ors. and Carpo Power Limited Vs. State of Haryana and Ors. The court emphasizes that there have been no amendments to the provisions of Section 8 of the CST Act, Rule 12 of CST (R&T) Rules, and declaration Form C post-GST implementation. It is clarified that the usage of 'C' Form is not restricted solely to resale purposes but also includes purchase for various other specified uses, as outlined in the CST Act. The judgment stresses that the registration granted under Section 7(2) of the CST Act remains valid until cancelled under Section 7(4), which has not been invoked in this case.

The court further emphasizes that the Parliament has retained high speed diesel among the defined 'goods' under Section 9 of the GST Act. The judgment asserts that the respondents are obligated to issue 'C' Forms to the petitioner company, and any failure to do so is deemed unauthorized by law. Drawing parallels with the case of Carpo Power Limited, the court rules in favor of the petitioners, directing the respondents to issue 'C' Forms for High Speed Diesel procured for mining purposes through interstate trade. The judgment allows for refund or adjustment of any excess tax paid due to the respondents' wrongful refusal to issue 'C' Forms, with a stipulated processing time of twelve weeks upon claim submission by the petitioners.

In conclusion, the court allows the writ application, citing the finality of the adjudication in the case of Carpo Power Limited and the declined Special Leave to Appeal. The judgment grants the petitioner's prayer in line with the order in the Hindustan Zinc Limited case, directing the respondents to issue 'C' Forms to the petitioner company.

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