Ultratech Cement Limited vs. State Of Rajasthan And Ors.

Held

The Court allowed the writ petition, holding 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 the issue to be covered by its previous judgment in Hindustan Zinc Limited Vs. State of Rajasthan & ors. (S.B. Civil Writ Petition No. 5506/2018). The reasoning was that the amendment to the definition of 'Goods' did not preclude the issuance of 'C' forms for HSD used in mining, which constitutes interstate trade. The ratio decidendi is that 'C' forms are to be issued for High Speed Diesel procured for mining purposes through interstate trade, even after the amendment to Section 2(d) of the CST Act. The Court directed that if the petitioner had paid any amount due to the wrongful refusal to issue 'C' forms, they would be entitled to a refund or adjustment from the concerned authorities. Such claims are to be processed within twelve weeks of being made in writing by the petitioner with requisite documents.

Facts

The petitioner, UltraTech Cement Limited, sought a direction from the Rajasthan High Court to issue 'C' forms for the purchase of High Speed Diesel (HSD). In the pre-GST regime, the petitioner purchased HSD against 'C' forms for manufacturing activities. Post-GST, this was denied due to an amendment in Clause (d) of Section 2 of the CST Act, which altered the definition of 'Goods'. The petitioner argued that HSD purchased for mining purposes through interstate trade should still be eligible for 'C' forms. The respondents are the State of Rajasthan and the Union of India, through various departments and officials.

Key Issues

1. Whether the petitioner is entitled to the issuance of 'C' forms for the purchase of High Speed Diesel for mining purposes through interstate trade, considering the amendment to the definition of 'Goods' under the CST Act? (Question of law) Petitioner's Arguments: The petitioner contended that despite the amendment to the definition of 'Goods' in the CST Act, 'C' forms should continue to be issued for High Speed Diesel procured for mining purposes through interstate trade. They relied on the principle that such purchases are essential for their manufacturing activities and should be treated as interstate sales eligible for concessional tax treatment. Respondents' Arguments: The respondents argued that the amendment to Section 2(d) of the CST Act had altered the definition of 'Goods', thereby impacting the eligibility for 'C' forms. They asserted that the denial of 'C' forms was in accordance with the amended provisions.