M/S Vikas Mines Private Limited vs. Union Of INDIA, Ministry Of Finance

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 the controversy in the present writ petition is squarely covered by the ratio of the order passed in Hindustan Zinc Limited Vs. The State of Rajasthan & Ors. The Court reasoned that Parliament has retained high speed diesel along with other specified petroleum products in Section 9 of the GST Act, and the petitioner's registration under Section 7(2) of the Act is still valid and can only be cancelled within the parameters of Section 4 of the CST Act. Therefore, it is an obligatory duty of the respondents to issue 'C' Forms. The Court further held that in the event the petitioner had to pay any amount on account of the respondents' wrongful refusal to issue 'C' Forms, the petitioner shall be entitled to a refund and/or adjustment of the same from the concerned authorities who collected the excess tax. The concerned authorities are directed to process such a claim within twelve weeks of it being made in writing by the petitioners, along with requisite documents.

Facts

M/s Vikas Mines Private Limited (Petitioner) filed a writ petition before the Rajasthan High Court challenging the inaction of the respondents in issuing 'C' Forms. The Petitioner is engaged in mining and procures High Speed Diesel (HSD) through interstate trade. The respondents are Union of India, State of Rajasthan, Commissioner Commercial Tax Department, and Commercial Tax Officer, Circle Rajsamand. The dispute pertains to the Petitioner's entitlement to 'C' Forms for HSD procured for mining purposes, which is crucial for claiming concessional rate of tax under the Central Sales Tax Act, 1956. The Petitioner contended that the respondents are obligated to issue 'C' Forms.

Key Issues

1. Whether the respondents are legally obligated to issue 'C' Forms to the petitioner for High Speed Diesel procured for mining purposes through interstate trade, considering the provisions of the GST Act and the Central Sales Tax Act, 1956? Petitioner's Contention: The petitioner argued that the respondents have a duty to issue 'C' Forms. They relied on the principle laid down in the case of Hindustan Zinc Limited Vs. The State of Rajasthan & Ors. and Carpo Power Limited, asserting that the case is similar and therefore, the respondents are liable to issue 'C' Forms. The petitioner also highlighted that High Speed Diesel is retained under Section 9 of the GST Act, and their registration under Section 7(2) of the Act is valid and can only be cancelled within the parameters of Section 4 of the CST Act. Revenue's Contention: The judgment does not record any specific arguments made by the respondents. However, their inaction in issuing 'C' Forms implies a dispute regarding the petitioner's entitlement.