2020 (12) TMI 694

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....nger defined as 'goods' with effect from 01.07.2017 under section 2(d) of the Central Sales Tax Act, 1956; 2) for a direction to the respondents to issue 'C' forms to the petitioner; 3) to set aside and quash the letter / order dated 22.08.2019 issued by respondent No.2; and 4) for a direction to the respondents to refrain from taking any steps against the petitioner following the order / letter dated 22.08.2019. 3.1. Petitioner has also prayed for interim reliefs in the above terms till final hearing and disposal of the writ petition. 4. Petitioner is a company incorporated under the Companies Act, 1956. It is engaged in the manufacture of float glass in its factory situated at MIDC Industrial Area, Taloja in the district of Raigad, Maharashtra. For the purpose of manufacturing of float glass petitioner purchases natural gas on inter-state basis from the State of Gujarat. The purchased natural gas is utilized as a fuel in the furnace of the petitioner for the purpose of carrying out its manufacturing process. The natural gas is used by the petitioner as a fuel to heat the furnaces to melt the raw materials. 4.1. Petitioner got registration certi....

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....e by him or subject to any rules made by the Central Government in this behalf, for use by him in the manufacture or processing of goods for sale or in the tele-communications network or in mining or in the generation or distribution of electricity or any other form of power; * * * * * * " 6.2. Thus, section 8(3)(b) allows concessional rate of CST when the goods bought and sold are goods of the class or classes specified in the certificate of registration of the registered dealer purchasing the goods and are:- i. intended for resale by him (registered dealer); or ii. for use by the registered dealer in the manufacture or processing of goods for sale; or iii. used in telecommunications network; or iv. used in mining; or v. used in the generation or distribution of electricity or any other form of power. 6.3. Therefore, meaning of the word 'goods' as appearing in section 8(3)(b) of the CST Act becomes relevant. 7. When the CST Act was first enacted, the definition of the word 'goods' as appearing in section 2(d) was as under:- "2(d) 'Goods' include all materials, articles, commodities and all other kinds of movab....

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....ion of 'goods' in section 2(d) of the CST Act reads as under:- 2. Definitions - In this Act, unless the context otherwise requires,- * * * * (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. 10. After the aforesaid change in the definition of 'goods' post introduction of GST, petitioner was not able to provide 'C' forms to its selling dealers to avail the concessional rate of tax in respect of interstate purchase of goods as it was not issued such forms by the authority. 11. It is stated that Deputy Commissioner of State Tax, Raigad Division, Navi Mumbai had issued show cause notice to the petitioner on 20.06.2018 to show cause as to why its registration under the CST Act should not be cancelled with effect from 01.07.2017. Though petitioner submitted reply on 10.08.2018, nothing happened thereafter. However, in the course of personal hearing, representative of the petitioner was orally informed that petitioner's registration certificate under....

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....No.93160 of 2020 on 01.12.2020. 6. We make it clear that if the Writ Petitions cannot be heard on that day, prayer of the Petitioners for interim relief may be considered." 16. Writ Petition (St.) No.93160 of 2020 has since been adjourned to 06.01.2021. In that view of the matter, this writ petition was heard along with the other three writ petitions on 03.12.2020 on the interim prayer. 17. While Mr. Shridharan, learned counsel for the petitioner submits that after the Supreme Court's decision in Printers (Mysore) Limited (supra), the issue has been clarified and there was no necessity for the respondents to withhold issuance of 'C' forms to the petitioner on the ground that the finished product of the petitioner is not included in the definition of 'goods' in section 2(d). His submission is that Jharkhand High Court in Tata Steel Limited Vs. State of Jharkhand, 2019 VIL 446 JHR followed the decision of the Supreme Court in Printers (Mysore) Limited (supra) and has held that the word 'goods' appearing in the second half of section 8(3)(b) of the CST Act may not necessarily mean the goods as defined under section 2(d) of the CST Act. Further it has been held that regi....

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....finition of 'goods' under section 2(d) of the CST Act 1956. Therefore, your prayer to issue Form-'C' to purchase natural gas for manufacturing of Float Glass cannot be accepted." 20.1. Thus, petitioner has been denied 'C' forms on the ground that natural gas purchased by it in the course of inter-state sale is used for manufacturing of float glass which is not covered by the definition of goods under section 2(d) of the CST Act. 21. In Carpo Power Limited Vs. State of Haryana, 2018 (12) GSTL 248 (P&H), Punjab & Haryana High Court dealt with the challenge made by the petitioner to refusal of the respondents to issue 'C' forms in respect of natural gas purchased by it in the course of inter-state sale and used by it for generation of electricity. After referring to the definition of 'goods' in section 2(d) as well as the provisions of sections 7 and 8, it was held as under:- "26. The provisions of Section 8 of the CST Act, Rule 12 of CST (R&T) Rules and declaration Form C have not undergone any amendment after the implementation of the GST laws. There cannot be any occasion to restrict the usage of 'C' Form only for the purposes of re-sale of the six items mentione....

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..... 23. It may be mentioned that against the decision of Punjab & Haryana High Court in Carpo Power Limited (supra), State had filed S.L.P. before the Supreme Court but the S.L.P. was dismissed by the Supreme Court by holding that there was no legal and valid ground for interference. 24. In an identical case before us i.e., Writ Petition (St.) No.93160 of 2020 (M/s. Tata Steel BSL Limited Vs. Union of India), we had passed an interim order on 01.10.2020 by following the decision of the Punjab & Haryana High Court in Carpo Power Limited (supra). We have held as under:- "Heard Mr. Nankani, learned senior counsel for the petitioners and Ms. Vyas, learned AGP for respondent Nos.2, 3 and 4. We have also heard Mr. Mishra, learned counsel for respondent Nos.5. 2. On 25.09.2020, Ms. Vyas, learned AGP for the State sought time to obtain instructions on the prayer of the petitioner for stay of impugned order dated 05.03.2020. 3. Today when the matter is called upon, she submits that State would like to file a detailed affidavit. However, she opposes the prayer for stay and submits that she has a preliminary objection as to maintainability of the writ petition a....