2020 (10) TMI 817 - HC - VAT and Sales Tax

Court affirms dealer rights on concessional diesel rates, protects Central Sales Tax Act, dismisses State appeal.

M/s. Sri Siva Saraana Blue Metals Versus The Assistant Commissioner (ST), The Joint Commissioner (ST), The Principal Commissioner & Commissioner of Commercial Taxes, The Joint Commissioner (ST)

M/s. Sri Siva Saraana Blue Metals Versus The Assistant Commissioner (ST), The Joint Commissioner (ST), The Principal Commissioner & Commissioner of ... Issues involved:Interpretation of entitlement to 'C' Forms for purchase of High Speed Diesel under the Central Sales Tax Act, 1956.Comprehensive Analysis:Issue 1: Entitlement to 'C' Forms for purchase of High Speed DieselThe judgment addresses the issue of entitlement to 'C' Forms for purchasing High Speed Diesel from suppliers in other states to avail concessional tax benefits. The petitioner, a dealer, faced difficulties in obtaining 'C' Forms under the Central Sales Tax Act. The court referred to a previous decision in a similar case where the benefit of concessional rates for inter-state sales was upheld. The court emphasized that such benefits apply to all dealers seeking them, not just those party to specific decisions. The State's intention to challenge the decision was noted, but until then, all Assessing Authorities in Tamil Nadu were directed to apply the rationale of the decision to pending assessments.Issue 2: Challenge through Writ AppealThe State filed a Writ Appeal challenging the decision on 'C' Forms, which was dismissed by a Division Bench. The judgment clarified that liability to pay tax under the CST Act applies to both sellers and purchasing dealers, allowing dealers to obtain registration independently. The court rejected the contention that dealers lost the entitlement to registration under the CST Act. It emphasized that the scope of the Act remained intact despite amendments, ensuring rights for purchasing dealers and maintaining the freedom of trade in inter-State commerce.Issue 3: Special Leave Petition and Final OrderThe State expressed intent to challenge the Writ Appeal decision through a Special Leave Petition. The judgment confirmed the finality of the Writ Appeal decision and allowed the petitioner to include 'High Speed Diesel Oil' in the registration certificate, directing this action within four weeks. The request for issuance of 'C' Forms was also granted. The court upheld the rights of dealers to purchase goods at concessional rates and quashed the Circular letter restricting 'C' Forms, emphasizing the protection of dealers' rights under the CST Act.This detailed analysis of the judgment highlights the legal interpretations and implications regarding the entitlement to 'C' Forms for purchasing High Speed Diesel under the Central Sales Tax Act, providing a comprehensive understanding of the court's decisions and directions in the case.