C-Form issuance for inter-State diesel transactions granted interim relief pending final determination of entitlement.

Interim relief was granted directing issuance of C-Form to a registered dealer pending final adjudication of its entitlement. The Court relied on an earlier coordinate Bench view that, under the Central Sales Tax Act, 1956 read with the 1957 Rules, a dealer could remain entitled to C-Form issuance for inter-State purchase and sale of high speed diesel after migration to the GST regime, noting the definition of goods in Section 2(d) and the non-notification of high speed diesel under the CGST Act. It held that withholding C-Form at the interim stage would serve no useful purpose, as any wrongful issuance could still attract higher tax liability and penalty if entitlement was ultimately negatived.

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Issues: Whether interim relief ought to be granted directing issuance of C-Form to the petitioner pending final adjudication of its entitlement.

Analysis: The petitioner relied on an earlier coordinate Bench decision holding that a registered dealer under the Central Sales Tax Act, 1956 read with the Rules of 1957 remained entitled to C-Form issuance for inter-State purchase and sale of high speed diesel even after migration to the GST regime, with reference to the definition of goods under Section 2(d) of the Central Sales Tax Act, 1956 and the non-notification of high speed diesel under Section 9(2) of the Central Goods and Services Tax Act, 2017. The Court noted that withholding C-Form would serve no useful purpose at the interim stage, since any wrongful issuance could still attract higher tax liability and penalty under law.

Conclusion: Interim relief was granted and the State was directed to issue C-Form to the petitioner, subject to the final adjudication of entitlement and the consequences prescribed by law if the petitioner was found not entitled.

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