TaxTMI 
TaxTMI 
2020 (3) TMI 450
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....f Commercial Taxes, Chepauk, Chennai and consequential Notices issued to the Assessees seeking to deny the benefit of purchases of HSD Diesel, Natural Gas in the course of inter-State Trade or Commerce against the Declaration of 'C' forms of the CST Act, 1956 at the concessional rate of 2%. 2. The Revenue also contends that had such HSD Diesel been purchased within the State of Tamil Nadu locally, the rate of tax at 28% would have been levied and it would not have resulted in a big financial loss to the State of Tamil Nadu. 3. The bone contention of the Revenue in the present Writ Appeal is that with the enactment of the Constitutional 101st Amendment and consequential GST Laws enacted in all the States with effect from 1.7.2017 and the consequential amendments effected in the CST Act, 1956 also and amendment in the definition of 'Goods' restricting the operation of CST Act for only six commodities like Petroleum Crude, High Speed Diesel, Motor Spirit (Petrol), Aviation Turbine Fuel, Natural Gas and Liquor, the Assessee Company or whoever engaged in the manufacture of Cement and other things, which were now covered by the GST Laws were not entitled to purchase suc....
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....Diesel, Petrol, etc. as commodities to be purchased by them in the manufacture of other goods like cement etc., but, the Registration Certificates should be deemed to be, pro tanto, amended by the force of enactment of new Laws and in the absence of their eligibility to get registered under the CST Act in terms of Section 7(1) of the Act, they could not be permitted under Section 8(3)(b) of the Act to avail the benefit of concessional rate of tax on such purchases of Petrol, Diesel, etc. for use in manufacture by them of other goods like Cement etc., which are administered and subjected to levy of tax under the new GST Law and since the GST Law does not make any such provision for concessional rate of tax against the Declaration of 'C' forms, such Dealers like the Respondent/Assessees cannot be allowed to make use of Declaration in Form 'C'. (c) That the learned Commissioner was justified in issuing the impugned communication to all the Joint Commissioners on 31st May 2018 making the correct interpretation of the position of law after 1.7.2017 allowing the use of Declaration form "C", by the first four categories of the Dealers who dealt with the such six specifie....
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....t 1956 and irrespective of them being not 'liable to pay tax' under the provisions of Section 7(1) of the CST Act, as they were not selling those six commodities in the course of inter-State Trade or Commerce but, nonetheless their right to hold the registration under CST Act independently exists and their right to purchase any of those six commodities at concessional rate also equally continues. (c) The learned counsel urged that if the operatability of the CST Act was restricted only to the specified six commodities inasmuch as the Sellers of those six commodities was concerned, the right of purchase in the course of inter State Trade or Commerce of any of these six commodities could not be defeated by the Revenue and there is no question of pro tanto amendment of Registration Certificates of the Assessees, as they are entitled to purchase these goods and their right has not been taken away, even by the enactment of GST Law with effect from 1.7.2017. Consequently, the Revenue Department has taken a wholly misconceived stand in the form of the Circular issued to the Joint Commissioners on 31.5.2018 so as to deny the said benefit to the Assessees. (d) The learned counse....
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....Act 1956 in respect of inter- State transactions and also under TNVAT Act 2006 in respect of intra-State transactions. From the above, it is thus made clear that any dealer who deals in those six goods are alone entitled to effect purchases from other State by availing the concessional rate of tax. In other words, those dealers who are not dealing in those goods are not eligible to purchase those six goods at the concessional rate of tax at 2% by issue of C form declarations as they are trading or manufacturing those goods that are administered under GST act 2017. It is learnt from reliable sources that certain dealers who are not dealing in those goods are effecting purchase of those six goods and effecting sales and also using it indirectly for the manufacturing process for which they are not entitled. For example, certain manufacturing units are effecting purchases of HSD and using it for generation of power out of which they manufacture finished goods that are and administered under GST Act 2017. In certain cases, the dealers are effecting purchases of petroleum products from other States and effect local sales and are not paying appropriate tax. Perusal of the data relatin....
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.... GST Act 2017 and (ii) Authorized dealers of major Oil Companies make payment of first Sale Tax at the rate specified in the Second Schedule to TNVAT Act 2006. Hence, all the Joint Commissioners (Territorial) are requested to issue necessary instructions to all the assessing officers to take necessary action against: 1. Those dealers who use the declaration form C for purchase of those six goods at concessional rate and not paying tax on the sales by making proper assessment under Section 22(4) of TNVAT Act 2006 2. Those dealers who have migrated to GST and not entitled to purchase those six goods as per Section 8(2) and Section 2(d) of CST Act 1956 by initiating action under Section 10-A for the offence committed under section 10-a of CST Act 1956. All the Joint Commissioners (Territorial) are also requested to issue necessary instruction to the assessing officers concerned that wherever approval is required for generation of C forms, they should be approved after verifying the eligibility of issue of those declaration in order to protect against loss of revenue to the State. The receipt of this letter has to be acknowledged by all the Joint Commissioners by return of ....
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....e of tax is admissible in respect thereof. (2-A) Where it appears necessary to the authority to whom an application is made under sub-section (1) or sub-section (2) so to do for the proper realisation of the tax payable under this Act or for the proper custody and use of the Forms referred to in clause (a) of the first proviso to subsection (2) of section 6 or subsection (1) of section 6-A or sub-section (4) of section 8, he may, by an order in writing and for reasons to be recorded therein, impose as a condition for the issue of a Certificate of Registration a requirement that the dealer shall furnish in the prescribed manner and within such time as may be specified in the order such security as may be so specified, for all or any of the aforesaid purposes. (3) If the authority to whom an application under sub-section (1) or sub-section (2) is made is satisfied that the application is in conformity with the provisions of this Act and the rules made thereunder [and the condition, if any, imposed under sub-section (2-A), has been complied with, he shall register the applicant and grant to him a certificate of registration in the prescribed form which shall specify the class or c....
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....aler shall, within thirty days of the occurrence of any of the aforesaid events, inform the authority granting the certificate of registration and shall within ninety days of such occurrence furnish a fresh surety bond or furnish in the prescribed manner other security for the amount of the bond. (3-D) The authority granting the certificate of registration may by order and for good and sufficient cause forfeit the whole or any part of the security furnished by a dealer,- (a) for realising any amount of tax or penalty payable by the dealer; (b) if the dealer is found to have misused any of the forms: referred to in sub-section (2-A) to have failed to keep them in proper custody: Provided that no order shall be passed under this sub-section without giving the dealer an opportunity of being heard. (3-E) Where by reason of an order under subsection (3-D), the security furnished by any dealer is rendered insufficient, he shall make up the deficiency is such manner and within such time as may be prescribed. (3-F) The authority issuing the forms referred to in sub-section (2-A) may refuse to issue such forms to a dealer who has failed to comply with an order under that sub-sec....
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.... ceased to be liable to pay tax under the sales tax law of the appropriate State or for any other sufficient reason. (5) A registered dealer may apply in the prescribed manner not later than six months before the end of a year to the authority which granted his certificate of registration for the cancellation of such registration, and the authority shall, unless the dealer is liable to pay tax under this Act, cancel the registration accordingly, and where he does so, the cancellation shall take effect from the end of the year." 11. A careful reading of the provisions will make it clear that registration only under Section 7(1) of CST Act depends upon the 'liability to pay tax', which arises under Section 6 of the Act, which is also quoted below for ready reference:- "6. Liability to tax on inter-State sales.- (1) Subject to the other provisions contained in this Act, every dealer shall, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, not being earlier than thirty days from the date of such notification, be liable to pay tax under this Act on all sales of goods other than electrical energy effected by him in ....
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....ction 8 (whether called a tax or fee or by any ether name); and (b) the dealer effecting such subsequent sale proves to the satisfaction of the authority referred to in the preceding proviso that such sale is of the nature referred to in this subsection. (3) Notwithstanding anything contained in this Act, no tax under this Act shall be payable by any dealer in respect of sale of any goods made by such dealer, in the course of inter-State trade or commerce, to any official, personnel, consular or diplomatic agent of- (i) any foreign diplomatic mission or consulate in India; or (ii) the United Nations or any other similar international body, entitled to privileges under any convention or agreement to which India is a party or under any law for the time being in force, if such official, personnel, consular or diplomatic agent, as the case may be, has purchased such goods for himself or for the purposes of such mission, consulate, United Nations or other body. (4) The provisions of sub-section (3) shall not apply to the sale of goods made in the course of inter- State trade or commerce unless the dealer selling such goods furnishes to the prescribed authority a certificate in....
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....eferred to in clause (c). (4) The provisions of sub-section (1) shall not apply to any sale in the course of inter-State trade or commerce unless the dealer selling the goods furnishes to the prescribed authority in the prescribed manner a declaration duly filled and signed by the registered dealer to whom the goods are sold containing the prescribed particulars in a prescribed form obtained from the prescribed authority: Provided that the declaration is furnished within the prescribed time or within such further time as that authority may, for sufficient cause, permit. (5) Notwithstanding anything contained in this section, the State Government may on the fulfilment of the requirements laid down in subsection (4) by the dealer, if it is satisfied that it is necessary so to do in the public interest, by notification in the Official Gazette and subject to such conditions as may be specified therein direct,-- (a) that no tax under this Act shall be payable by any dealer having his place of business in the State in respect of the sales by him, in the course of inter-State trade or commerce, to a registered dealer from any such place of business of any such goods or classes o....
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....ing assigned to it in clause (iii) to Explanation 2 to the proviso to section 3 of the Central Excise Act, 1944 (1 of 1944)." 13. It is true that the liability to pay tax arises under the provisions of the CST Act only upon seller who effects the taxable sale in the course of inter-State Trade or Commerce and only such Dealers can initially obtain the registration under Section 7(1) of the Act, but, the liability to pay tax on purchase of goods is an independent liability of Purchasing Dealer also to pay tax. Section 7(1) only casts an obligation on the Seller liable to pay tax as per Section 6 and to obtain registration. It does not talk of registration or cancellation there of any purchasing dealer. Section 7(2) provides independent right of any Dealer to obtain registration under the provisions of the CST Act. The said provisions of Section 7(2) of the Act are in two parts which are joined by the words "or" which means independent clauses. In the first category, the Dealer is liable to pay tax under the Sales Tax law of the appropriate State and in the second category, where there is no such law in force in the appropriate State or any part thereof, any dealer having a place of....
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....ake them out of GST Law and taking all other commodities except the six specified items in the GST Tax Law Regime. Such a view on the part of the Revenue is self defeatative and cannot be countenanced by the court. The freedom of trade including the right to purchase in the course of inter-State Trade or Commerce enshrined in Article 301 read with Article 304(b) is not taken away by GST Regime laws. 16. The contention raised on behalf of the State is that the words in Section 7(2) of the Act viz., "or where there is no such law in force in the appropriate State or any part thereof" were introduced by the CST (II Amendment) Act, 1958 (Act 31 of 1958) because there were some States, atleast six States/Union Territories, where there was no Sales Tax Act during 1958 when the said Amendment was made in the year 1958 and therefore, to entitle the Dealers of those States where there was no local Sales Tax law applicable also to obtain registration under the provisions of the CST Act, those words were added in Section 7(2) of the Act. The learned Special Government Pleader for the Revenue, Mr.Mohammed Shaffiq, therefore, submitted that where the proper Sales Tax Law of the State is avail....
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....ds to these Assesses subject to their compliance with licensing requirements, if any? The answer would be no. Then how can they deny their right to purchase. 18. Sections 4, 5 and other provisions of the CST Act talk of both Sale or Purchase of goods in the course of inter-State Trade or Commerce. Therefore, the right to purchase, which is, essentially, a part of freedom of trade under Article 301 and 304 of the Constitution, cannot be taken away on the anvil of the argument raised by the learned counsel for the Revenue. Equally, the liability of these dealers to pay tax under local TNVAT Act on these six commodities also continues after 1.7.2017 if sale or purchase is made within the State. Therefore, their right to hold registration under CST Act, 1956 cannot be denied to them under Section 7 of the Act. 19. The next contention of the learned Special Government Pleader for the Revenue is that concessional rate of tax under Section 8(1) of the Act has to be read with the conditions specified in Section 8(3)(b) of the Act viz., against the Declaration in 'C' forms and therefore, such a provision for giving concessional rate of tax should be strictly construed and the sai....
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....other Dealers continued to have liability to pay Sales Tax or VAT under the local State VAT law and therefore, they are entitled to continue their State law registration and on the anvil of that they are equally entitled to registration under the CST Act, 1956. Therefore, even if the conditions required to be complied under Section 7(1) are fulfilled by the Respondent/Assessee, it is not correct in law to contend that their registration should, either pro tanto, be deemed to be cancelled under GST or it is, otherwise, also liable to be cancelled. The manufactured goods by them being governed by GST law is irrelevant for deciding their continued right to purchase Diesel, etc., against 'C' Forms. If resale or manufacturing of goods was to be the acid test for use of 'C' Forms, it would not have been allowed for the purposes like power generation, mining or even telenetwork communication operations. 23. Another ground raised by the learned counsel for the Revenue about the validity of the Circular issued by the Commissioner on 31.5.2018, which has been quashed by the learned Single Judge, is also without any merit. The provisions of the TNVAT Act contained in Section ....
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....rums or any appellate forum or Tribunal or Court and also prohibits the Assessees to raise such issues and seek Clarifications for avoidance of tax. Subsection (1) is very clear which empowers the Commissioner to issue Clarifications and Advance Rulings on any point concerning rate of tax only. Sub-section (2) is couched in negative to provide when such applications are not maintainable. Sub-section (3) makes such orders binding on the applicants and in respect of goods for which the Clarification of Advance Ruling was sought and it makes such order binding on all the Officers working under the control of such Commissioner. 25. Therefore, the scope of Section 48A is very limited and does not empower the said Commissioner to issue such general Circulars or any Guidelines to the lower Authorities in the State. Besides thus, being without jurisdiction and any statutory support, the impugned Circular dated 31.5.2018 is also passed in violation of principles of natural justice. There is no justification for creating any invidious classification by creating categories of Dealers, arbitrarily, in violation of Article 14 of the Constitution as has been done in the impugned Circular. When ....
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....nd have now obtained registration both under new IGST Act and SGST Act, their registration under the old laws like CST Act, 1956 and State VAT law are also bound to continue even after 1.7.2017. 27. Therefore, what has been contended by the learned counsel for the Revenue can be applied equally against the Revenue Department and the registration of the Dealers in respect of six commodities deserves to continue under old laws like State VAT Act and CST Act, 1956. We should also note that grant of Registration Certificate under the old law as well as new law is not an administrative order, but, a quasi-judicial act or order, which confers certain rights on the Dealers and also certain obligations under such Registration Certificates. The provision for the amendment or cancellation of such Registration Certificates is also specified in the respective enactments and the same can be done only upon an opportunity of hearing granted to the Dealers concerned. Therefore, there is no scope of any implied cancellation or repeal of the Registration Certificates as was contended by the learned counsel for the Revenue. We cannot accept such a flimsy submission only to subserve the interest of m....
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.... to purchase at the concessional rate against Declaration in 'C' form even the said six commodities. No law has prohibited any such Dealers, who purchase the six commodities to start even selling these six commodities and therefore, the Respondent/Assessee like M/s.Ramco Cements Limited can even sell any of those six commodities, subject to their complying with other licensing requirements, if any. Therefore, their act of purchasing any of these six commodities under CST Act cannot be adversely affected. 30. Some discussion of the cited Case Laws now is considered opportune. 31. In Carpo Power Limited vs. State of Haryana and others ((2018) 53 GSTR 24 (P&H)), a Division Bench of Punjab and Haryana High Court held that since Section 8 of the CST Act, Rule 12 of the CST (R&T) Rules and Declaration form 'C' have not undergone any amendment, the Revenue Department cannot put any restriction on the usage of 'C' forms only in view of the amendment of definition of "goods" in Section 2(d) of the CST Act. They also highlighted the additional user of 'C' forms provided for purchase of goods against 'C' form in the Telecommunication Network which was....
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....the oil companies or otherwise. The concerned authorities shall process such a claim within twelve weeks of the same being made by the petitioner in writing and the petitioner furnishing the requisite documents/form." 32. As already noted above, the said Judgment has been affirmed by the Hon'ble Supreme Court with the dismissal of SLP No.20572 of 2018 (State of Haryana v. Carpo Power Limited, dated 13.8.2018). The brief order of the Hon'ble Supreme Court dated 13.8.2018 reads as follows:- " Heard the learned counsel for the petitioners and perused the relevant material. We do not find any legal and valid ground for interference. The Special Leave Petition is dismissed." 33. A learned Single Judge of Rajasthan High Court in Hindustan Zinc Limited v. State of Rajasthan and others, decided on 18.5.2018 ((2019) 64 GSTR 366 (Raj.)), followed the decision of the Punjab & Haryana High Court and issued directions to the Revenue Department to issue 'C' forms to purchase High Speed Diesel, Oil for mining purpose in the course of inter-State Trade or Commerce despite the GST Law introduced with effect from 1.7.2017. The relevant portion of the said order is quoted below ....
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....nition of "goods" contained in Section 2(d) of the CST Act, 1956 suffered amendment in the Taxation Laws (Amendment) Act, 2017 published in the Gazette of India on 5-5-2017. The amended definition of "goods" states as under: - "(d) "Goods" means- (i) petroleum crude; (ii) high speed diesel; (iii) motor spirit (commonly known as petrol); (iv) natural gas; (v) aviation turbine fuel; and (vi) alcoholic liquor for human consumption" 21. Thus, the amended definition of goods under the CST Act, 1956 includes high speed diesel and by virtue of the said amendment, the definition of "goods" given under the CST Act stands amended whereby high speed diesel was kept under the meaning of goods amongst other five items. 22. The Central Goods and Services Tax Act, 2017 was promulgated and brought into force with effect from 1-7-2017, which is an Act to make a provision for levy and collection of tax on intra- State supply of goods or services or both by the Central Government and the matters connected therewith or incidental thereto. Likewise, the Chhattisgarh Goods and Services Tax Act, 2017 (for short, 'the Chhattisgarh GST Act, 2017') was promulgated and brought into ....
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....eal and saving. Section 174(1) of the Chhattisgarh GST Act, 2017 provides as under: - "174. Repeal and saving.--(1) Save as otherwise provided in this Act, on and from the date of commencement of this Act, (a) (i) the Chhattisgarh Value Added Tax Act, 2005 (2 of 2005) shall apply only in respect of goods included in the Entry 54 of the State List of the Seventh Schedule to the Constitution. (b) (i) the Chhattisgarh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976 (52 of 1976); (ii) the Chhattisgarh Hotel Tatha Vas Grihon Me Vilas Vastuon Par Kar Adhiniyam, 1988 (13 of 1988); and (iii) the Chhattisgarh Entertainments Duty and Advertisements Tax Act, 1936 (30 of 1936), (hereinafter referred to as the repealed Acts) are hereby repealed." 26. The aforesaid provision of the State Act clearly provides that the Chhattisgarh Value Added Tax Act, 2005 shall apply only in respect of goods included in Entry 54 of the State List of the Seventh Schedule to the Constitution. Entry 54 of the State List of the Seventh Schedule to the Constitution of India as amended by the Constitution (One Hundred and First Amendment) Act, 2016, states as under: - "54. Taxes on the sale ....
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.... notification has been issued even under Section 9(2) of the CGST Act, 2017 by the Central Government or by the State Government under Section 9(2) of the Chhattisgarh GST Act, 2017, on the recommendation of the GST Council, therefore, the inter- State trade of high speed diesel would be governed by the CST Act, 1956 and the petitioner is entitled to make inter-State purchases of high speed diesel from other States as before and his registration certificate under the CST Act, 1956 and the rules made thereunder still holds the field and is valid." 35. Similarly, another learned Single Judge of Gauhati High Court in the case of Star Cement Meghalaya and others v. The State of Assam and others ((2018) 57 GSTR 369 (Gau.)) relied upon the provisions of Section 7(2) read with Section 8(3)(b) of the CST Act and held that the Assessee is entitled to make such purchase despite the Amendment of GST Law with effect from 1.7.2017. The relevant portion of the said decision is quoted below for ready reference:- "16. Section 7(2) of the CST Act of 1956 entitles a dealer to get himself registered under the Act, even if, he is not liable to pay sales tax under the CST Act of 1956, but on the oth....
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....anufacture or processing of a good, other than the aforesaid six goods retained under section 2(d) CST Act of 1956 would cease to be a dealer under section 7(2) of the Act with effect from 01.07.2017 as their liability to pay tax under the AVAT Act of 2003 had ceased to exist from 01.07.2017. 31. The circular dated 05.09.2017 providing for the withdrawal of the registration under section 7(2) of the CST Act of 1956 is based on the reason that such dealers involved in interstate purchase of the six goods and using them for a manufacturing of a good other than the six goods, are no longer leviable to a tax under the AVAT Act of 2003 from 01.07.2017. But as already discussed hereinabove section 174(1) of the AGST Act of 2017 clearly provides that the AVAT Act of 2003 continues to remain in force in respect of the six goods retained under Section 2(d) of the CST Act of 1956 and also included in the entry-54 of the State list of the Seventh Schedule of the Constitution of India. 32. From the aforesaid provisions of Section 174(1) of the AGST Act of 2017 and also in view of there being no date notified either by the Central Government and the State Government under Section 9(2) of ....
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....sel, and the petitioner is entitled for issuance of C-Form for inter-State purchase / sale of high speed diesel against the said C-Form. Accordingly, the respondents shall be liable and are directed to issue C-Form to the petitioner in respect of high speed diesel to be purchased by the petitioner and used in the course of manufacture of cement and for that, it is further directed to rectify and remove the error on their official website and entertain the petitioner's application submitted on-line on the official website seeking issuance of 'C' Form to the petitioner for said goods." 39. The above decisions of various High Courts, more particularly, the order passed by Punjab and Haryana High Court made in Caparo Power Ltd's case, confirmed by the Hon'ble Supreme Court, would show that the respondents herein are not entitled to take a different stand, especially, when the facts and circumstances in all these cases before this court as well as before the other High Courts, as extracted supra, are one and the same. In other words, the issue involved in these cases as well as the cases before the other High Courts is one and the same, out of which, one decision w....
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....el Ltd. v. State of Orissa ((2019) 70 GSTR 99 (Orissa)), after quoting the aforesaid decisions of various High Courts and reiterating the same legal position, has concluded that the Circular issued by the Government of India, Ministry of Finance dated 1st November 2018 addressed to the Commissioner of Commercial Tax of all States/Union Territories to give effect to the decision of the Division Bench of Punjab & Haryana High Court in Carpo Power Limited case (supra) as the same stood affirmed by the Hon'ble Supreme Court with the dismissal of the SLP on 13.8.2018. The relevant portion of the above judgment is also quoted below for ready reference:- "3. The aforesaid decision of Punjab and Haryana High Court was the subject-matter of S. L. P. to Appeal (C) No. 20572 of 2018 before the Honourable Supreme Court, which came to be dismissed on August 13, 2018 after which the Central Government has come out with the clarification by their letter dated November 1, 2018, which reads as under: " F-No. S-29012/64/2018-ST-II-DoR Government of India, Ministry of Finance, Department of Revenue, State Taxes Section. ..... Room No. 275, North Block, New Delhi. Dated the 1st November, ....
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....ufacturing process, or mining activities or engaged in power generation were bulk purchasers of "high speed diesel" which they required for their manufacturing process/mining activities/ generation of power, as the case might be, which was used in manufacturing, mining, or generation of the goods, which were their end-products available for sale. For implementation of the GST regime necessary amendment in entry 54 of the State List of the Seventh Schedule to the Constitution of India was made. Necessary amendment was also made in Central Sales Tax Act in the definition of "goods" as defined under section 2(d) of the Central Sales Tax Act. The said definition which was earlier having very wide scope was given a very restricted meaning including only six items. Admittedly, the petitioners' end-products did not come within the definition of "goods" as defined under section 2(d) of the Central Sales Tax Act, whereas "high speed diesel", which they required in their manufacturing process, came within the definition of "goods" as defined under the Central Sales Tax Act. A circular dated October 11, 2017 was issued by the State of Jharkhand, in its Commercial Taxes Department, denying....
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.... Accordingly, the State Government decided not issue form C to such dealers for inter-State purchase of the aforesaid six goods. An office memorandum dated November 7, 2017 was also issued by the Union of India and its Ministry of Finance, Department of Revenue, State Tax Division, clarifying that the term "goods" referred to in section 8(3)(b) of the Central Sales Tax Act, would have the same meaning as defined and amended under section 2(d) of the Central Sales Tax Act, vide the Tax Laws Amendment Act, 2017. Pursuant to the decision in Carpo Power Limited v. State of Haryana (2018) 53 GSTR 24 (P&H), (CWP No.29437 of 2017, decided on March 28, 2018), and the subsequent dismissal of the SLA preferred against the judgment passed by the Punjab and Haryana High Court the Central Government in its Ministry of Finance, Department of Revenue, New Delhi, issued letter dated November 1, 2018, addressed to Commissioners of Commercial Taxes of all the States/Union Territories on the subject regarding issuance of form C, and making further clarification to its earlier OM dated November 7, 2017, stating that in view of the judgment passed by the Punjab and Haryana High Court in Carpo Power....
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....ctive of the fact whether they are liable to pay any tax to State or not. There was no merit in the submission of the State that since the dealers were no more liable to pay tax under the Jharkhand Value Added Tax Act, in view of the fact that the word "goods" used in Section 2(i) of the Central Sales Tax Act defining the "sales tax law" would mean only those six goods as defined under section 2(d) of the Central Sales Tax Act and that their registration under Section 7(2) of the Act would come to an automatic end. That being the position, the very reasoning for issuance of the circular dated October 11, 2017 had no legs to stand in the eyes of law and could not be sustained. Accordingly, the circular dated October 11, 2017 issued by the State Government in its Commercial Taxes Department, which had been challenged in all these writ applications, was to be quashed. PRINTERS (MYSORE) LTD. v. ASSTT. COMMERCIAL TAX OFFICER (1994) 93 STC 95 (SC), COMMISSONER OF SALES TAX v. MADHYA BHARAT PAPERS LTD. (2000) 117 STC 547 (SC) and CARPO POWER LIMITED v. STATE OF HARYANA (2018) 53 GSTR 24 (P&H) followed." 39. Therefore, if a Dealer has a right to sell as well the restricted six items u....