Court rules dealers entitled to 'C' Forms for purchasing diesel outside state for tax benefits

The court ruled in favor of the petitioners, emphasizing that all dealers are entitled to 'C' Forms for purchasing High Speed Diesel from suppliers outside Tamil Nadu to avail concessional tax benefits. The court directed the Assessing Authorities to apply this rationale to all pending assessments until any appeal alters the situation. The judgment highlighted the need for uniform application of the decision to all concerned parties and confirmed the decision in the Writ Appeal, leading to the allowance of the writ petition and closure of connected miscellaneous petitions.

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Issues:
1. Entitlement to 'C' Forms for purchase of High Speed Diesel from suppliers outside Tamil Nadu to avail concessional benefit of tax.

Analysis:
The judgment addressed the issue of entitlement to 'C' Forms for the purchase of High Speed Diesel from suppliers outside Tamil Nadu to avail the concessional benefit of tax. The court referred to a previous decision in the case of M/s. Ramco Cements Ltd. where it was held that the benefit of the concessional rate is available to dealers who purchase High Speed Diesel from neighboring states through inter-state sales. This decision was supported by various other court judgments, including the Punjab and Haryana High Court, which was confirmed by the Supreme Court. The court emphasized that the benefit applies to all dealers seeking it, in accordance with the law.

The Government Advocate did not dispute this position but mentioned the State's intention to challenge the order in the Ramco Cements case. However, until the order is stayed or reversed, all Assessing Authorities within Tamil Nadu must apply the rationale of the decision to all pending assessments. The court found the stand of the Assessing Authorities, limiting the benefit only to parties of the specific case, unacceptable. The court clarified that decisions like these are applicable to all dealers seeking the benefit, as they are decisions in rem.

Subsequently, the court allowed the Writ Petitions, directing necessary action by the department without imposing any costs. The judgment highlighted the need for the State to comply with the decision until any appeal alters the situation. The court reiterated its stance based on previous judgments and emphasized the uniform application of the decision to all concerned parties. The judgment in the Writ Appeal further confirmed the decision, leading to the allowance of the writ petition and closure of connected miscellaneous petitions.

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