TaxTMI 
TaxTMI 
2022 (5) TMI 1113
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....quired for procurement of Extra Neutral Alcohol (In short "ENA") and Malt Spirit utilized for manufacturing of Indian Made Foreign Liquor (In short "IMFL") used for human consumption, owing to which, the petitioner has been deprived of the concessional rate of tax levied under the Central Sales Tax Act, 1956 (hereinafter referred to as "CST Act"). 2. Learned counsel for the petitioner submits that the petitioner is a registered dealer under the CST Act and the Chhattisgarh Value Added Tax Act, 2005 (hereinafter referred to as "VAT Act") and is also a License Holder under the State Excise Department, whereby the petitioner has been issued the license of foreign liquor-9 and authorizing him to manufacture the IMFL. It is contended that the material required for manufacturing of IMFL was ENA and Malt Spirit and the petitioner has valid permit to purchase the same. Further contention of learned counsel for the petitioner is that the petitioner was being issued "C" form till 30-06-2017 for the goods covered under Section 2(d) of the CST Act, [as applicable up to 30-06-2017], so as to get the concession of the levy of tax at the rate of 2% by the respondent department. However, ....
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....pugned dated 26-07-2019 (Annexure P-1). In support of his contentions, learned State counsel has placed his reliance upon the decision rendered by the Constitutional Bench of the Supreme Court in the matter of Synthetics and Chemicals Ltd and others vs. State of U.P. and others, reported in (1990) 1 SCC 109. 4. I have heard learned counsel for the parties and perused the entire papers annexed with this petition carefully. 5. Before adverting to the aforesaid contention of the parties, it is necessary to examine the relevant provision of the CST Act, i.e. Section 2(d) of it, which provides the definition of "Goods" prior to and subsequent to its amendment. 6. Prior to its amendment, it reads as under: Section 2(d): "Goods" includes all materials, articles, commodities and all other kinds of movable property, but does not include newspapers, actionable claims, stocks, shares and securities." And, subsequent to its amendment, which came into force with effect from 05-05-2017, Section 2(d) of the CST Act provides as under:- "Goods means (i) petroleum crude; (ii) high speed diesel; (iii) motor spirit (commonly known as petrol); ....
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....rs for human consumption. Entry 84 in List I reads: "84. Duties of excise on tobacco and other goods manufactured or produced in India except- (a) alcoholic liquors for human consumption. (b) opium, Indian hemp and other narcotic drugs and narcotics, but including medicinal and toilet preparations containing alcohol or any substance included in subparagraph (b) of this entry." 96. Entry 51 in List II reads: "51. Duties of excise on the following goods manufactured or produced in the State and countervailing duties at the same or lower rates on similar goods manufactured or produced elsewhere in India: (a) alcoholic liquors for human consumption; (b) opium, Indian hemp and other narcotic drugs and narcotics; but not including medicinal and toilet preparations containing alcohol or any substance included in subparagraph (b) of this entry." 97. A comparison of the language of these two entries clearly demonstrates that the powers of taxation on alcoholic liquors have been based on the way in which they are used as admittedly alcoholic liquor is a very wide term and may include variety of types of alcoholi....
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....el, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel shall be levied with effect from such date as may be notified by the Government on the recommendations of the Council. (3) ---- xxx ---- xxx --- (4) ---- xxx ---- xxx --- (5) ---- xxx ---- xxx --- 11. Sub-section(1) of the aforesaid provision states that subject to the provisions of sub-section(2), there shall be levied a tax called the central goods and services tax on all intra-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption. Since the ENA and Malt Spirit in its original form are not found to be fit for human consumption, as observed hereinabove, therefore, no reliance could be placed on it. In so far as the applicability of sub-section (2) of the aforesaid provision is concerned, the same is, however, also not applicable as the notification required to be issued under it, is only with regard to the supply of items mentioned in clauses (i to v) of the amended provision of clause(d) of Section 2 of the CST Act and as the ENA and Malt Spirit are not found to be alcoholic liquor fit for human co....