M/S Dlf Power & Services LTD. vs. The State Of Haryana & Others

Held

The Court disposed of the writ petition by directing respondent No. 2 (State of Haryana and others) to take a decision on the petitioner's email dated November 11, 2017, within two weeks from the date of receipt of the certified copy of the order. This decision was to be made in accordance with the law and by passing a speaking order, after affording an opportunity of hearing to the petitioner. The Court explicitly stated that it was not expressing any opinion on the merits of the case. Therefore, the Court did not definitively rule on the admissibility of Form 'C' post-GST or the petitioner's entitlement to it. The primary outcome was a directive for a timely decision by the respondent authority.

Facts

The petitioner, M/s DLF Power and Services Ltd., is a power generation and distribution company registered under the Haryana Value Added Tax Act, 2003, and the Central Sales Tax Act, 1956. Prior to GST, it purchased diesel for power generation using Form 'C' under Section 8(3) of the 1956 Act, availing a concessional tax rate of 2%. After the introduction of GST on July 1, 2017, the petitioner continued to purchase diesel against Form 'C' as it was still mentioned in the definition of 'goods' under the 1956 Act. However, oil companies later demanded submission of Form 'C' to their assessing authorities, threatening to charge the full tax rate of 16.75% plus interest. The petitioner requested issuance of Form 'C' in advance and sought clarification from the respondents. A trade circular dated November 17, 2017, clarified that Form 'C' could be used for inter-state purchase of certain goods including HSD, but Form 'C' had not been issued to the petitioner till the date of the writ petition.

Key Issues

1. Whether the petitioner is entitled to the issuance of Form 'C' for the purchase of diesel for generation/distribution of power for the period after the introduction of GST, specifically from July 1, 2017, onwards, under the provisions of the Central Sales Tax Act, 1956, and relevant notifications and trade circulars? The petitioner argued that it was entitled to purchase diesel against Form 'C' for use in power generation as per Section 8(3) of the Central Sales Tax Act, 1956. It relied on the fact that diesel was still included in the definition of 'goods' under the 1956 Act and that a trade circular dated November 17, 2017, clarified that Form 'C' could be used for inter-state purchases of HSD. The petitioner contended that despite its requests and the trade circular, Form 'C' had not been issued to it. The respondents' arguments are not explicitly recorded in the judgment, other than the fact that the petitioner was informed that the issue regarding the admissibility of 'C' Forms after GST was under consideration and clarification had been sought from higher authorities.