M/S. Haveli Marble PVT. LTD. vs. State Of Rajasthan

Held

The Court held that the respondents are liable to issue 'C' Forms in respect of High Speed Diesel procured by the petitioner for mining purposes through interstate trade. The reasoning was that High Speed Diesel is retained in the definition of 'goods' under Section 9 of the GST Act, similar to its inclusion in the amended definition under the CST Act. The Court also noted that the petitioner's registration under Section 7(2) of the CST Act was still valid and had not been cancelled, and that cancellation could only be done in accordance with Section 4 of the CST Act. The Court found no distinguishing factors between the present case and the precedent set in "Hindustan Zinc Limited Vs. The State of Rajasthan & Ors." and "Carpo Power Limited". The ratio decidendi is that a valid registration under the CST Act, coupled with the procurement of goods defined as such under the relevant statutes for specified purposes, obligates the authorities to issue 'C' Forms. The operative direction was that in the event the petitioner had paid any amount on account of the wrongful refusal to issue 'C' Forms, they would be entitled to a refund or adjustment from the concerned authorities, who were directed to process such claims within twelve weeks of the petitioner making a written claim and furnishing requisite documents.

Facts

The petitioner, M/s. Haveli Marble Pvt. Ltd., filed a writ petition before the Rajasthan High Court challenging the refusal of the Commercial Taxes Department to issue 'C' Forms for High Speed Diesel (HSD) procured for mining purposes through interstate trade. The petitioner argued that HSD is included in the amended definition of 'goods' under the GST Act and their registration under Section 7(2) of the CST Act remains valid and uncancelled. The respondents are the State of Rajasthan and the Union of India, along with their respective authorities. The court noted that the controversy was squarely covered by a previous judgment in "Hindustan Zinc Limited Vs. The State of Rajasthan & Ors.", decided on 18.5.2018.

Key Issues

1. Whether the respondents are obligated to issue 'C' Forms in respect of High Speed Diesel procured by the petitioner for mining purposes through interstate trade, considering the provisions of the GST Act and the CST Act. Petitioner's arguments: The petitioner contended that High Speed Diesel (HSD) is included in the amended definition of 'goods' under Section 9 of the GST Act. They further argued that their registration under Section 7(2) of the CST Act is still valid and has not been cancelled, and that cancellation can only be done within the parameters of Section 4 of the CST Act. They relied on the judgment in "Hindustan Zinc Limited Vs. The State of Rajasthan & Ors." and "Carpo Power Limited" to support their claim. Revenue/State's arguments: The judgment does not explicitly record any arguments made by the respondents. However, their refusal to issue 'C' Forms implies a contention that the petitioner was not entitled to them.