High Court Upholds 'C' Forms Use for Inter-state Purchases, Grants Diesel Oil Inclusion

The High Court ruled in favor of the petitioner, finding the reliance on the circular dated 05.09.2019 misplaced and emphasizing the right to purchase goods should not be denied, as it would violate Article 14 of the Constitution of India. The Court upheld the Division Bench's decision allowing the use of 'C' Forms for inter-state purchases at concessional tax rates, which was affirmed by the Supreme Court. The Supreme Court dismissed the Department's Special Leave Petitions, citing consistent views of multiple High Courts. The Court also granted the petitioner's request to include 'High Speed Diesel Oil' as a commodity in the registration certificate.

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Issues:
1. Interpretation of circular dated 05.09.2019 in light of subsequent judicial pronouncements.
2. Applicability of the decision in 2020 (3) TMI 450 to the present case.
3. Challenge to the order passed by the Division Bench.
4. Dismissal of Special Leave Petitions by the Supreme Court.
5. Inclusion of 'High Speed Diesel Oil' as a commodity in the registration certificate.

Interpretation of Circular:
The High Court analyzed the petitioner's prayer opposing the circular dated 05.09.2019 in light of subsequent judicial pronouncements. The Court noted that a previous judgment in W.P.No. 14510 of 2020 considered a similar prayer. Referring to the decision in 2020 (3) TMI 450, the Court highlighted that the right to purchase certain goods cannot be taken away based solely on the criterion of selling those goods. The judgment emphasized that such rights should not be denied, as it would result in a violation of Article 14 of the Constitution of India. Consequently, the Court found the reliance on the circular misplaced and ruled in favor of the petitioner.

Applicability of Previous Decision:
The Court addressed the challenge to the order passed by the Division Bench, which directed the Revenue Authorities not to restrict the use of 'C' Forms for inter-state purchases of specific commodities at a concessional rate of tax. The Division Bench's decision was based on considerations of invidious classification and constitutional principles. The Court highlighted that the Division Bench's order was upheld by the Supreme Court, which declined to interfere in the matter after considering the consistent views of multiple High Courts. Therefore, the Court upheld the Division Bench's decision, emphasizing the importance of maintaining the rights of dealers to purchase goods at concessional rates.

Dismissal of Special Leave Petitions:
The Supreme Court dismissed the Special Leave Petitions filed by the Department challenging the Division Bench's order. The Supreme Court noted the consistent views of multiple High Courts on the issue and declined to interfere in the matter. The Court cited judgments from various High Courts, including Punjab and Haryana, Jharkhand, and Rajasthan, which supported the position taken by the Division Bench. The Supreme Court emphasized the exhaustive nature of the judgments and the Union of India's decision to follow the views of the Punjab and Haryana High Court. Consequently, the Special Leave Petitions were dismissed.

Inclusion of 'High Speed Diesel Oil':
The Court allowed the writ petition, granting the petitioner's request for the inclusion of 'High Speed Diesel Oil' as a commodity in the registration certificate. The Court directed the relevant authorities to carry out this inclusion within a specified timeframe. Additionally, the petitioner's request for the issuance of 'C' Forms was also allowed as a consequence of this decision. The Court concluded by closing the connected miscellaneous petition and awarded no costs in the matter.

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