M/S Shiv Shankar Mining Private Limited vs. Union Of INDIA

Held

The Court held that the respondents are liable to issue 'C' Forms in respect of High Speed Diesel procured for mining purposes through interstate trade. The Court found that High Speed Diesel was retained by the Parliament under Section 9 of the GST Act, and the petitioner's registration under Section 7(2) of the Act was valid and could only be cancelled within the parameters of Section 4 of the CST Act. Consequently, the respondents' failure to issue 'C' Forms was without any authority of law. The Court directed that if the petitioner had paid any amount on account of the wrongful refusal to issue 'C' Forms, they would be entitled to a refund and/or adjustment of the same from the concerned authorities who collected the excess tax. The concerned authorities were directed to process such claims within twelve weeks of the claim being made in writing by the petitioners, along with the requisite documents/form. The ratio of the decision is that 'C' Forms must be issued for High Speed Diesel procured for mining purposes through interstate trade, and any excess tax paid due to wrongful refusal is refundable or adjustable.

Facts

The petitioner, M/s Shiv Shankar Mining Private Limited, filed a writ petition before the Rajasthan High Court. The petitioner sought a direction for the respondents to issue 'C' Forms in respect of High Speed Diesel procured for mining purposes through interstate trade. The respondents are the Union of India, the State of Rajasthan, the Commissioner of Commercial Tax Department, and the Commercial Tax Officer, Circle-Rajsamand. The petitioner's case was that the respondents wrongfully refused to issue 'C' Forms, leading to the petitioner potentially paying excess tax. The tax period is not explicitly stated, but the dispute pertains to the issuance of 'C' Forms for interstate procurement of goods.

Key Issues

1. Whether the respondents are liable to issue 'C' Forms to the petitioner for the procurement of High Speed Diesel for mining purposes through interstate trade, considering the provisions of the GST Act and the CST Act? The petitioner argued that High Speed Diesel, when procured for mining purposes through interstate trade, should be eligible for 'C' Forms. They relied on the principle that the Parliament retained certain goods, including High Speed Diesel, under Section 9 of the GST Act, and that their registration under Section 7(2) of the Act was valid and could only be cancelled within the parameters of Section 4 of the CST Act. Therefore, the refusal to issue 'C' Forms was without authority of law. The respondents' arguments are not recorded in the judgment. The judgment states that the controversy was squarely covered by a previous order of a co-ordinate bench.