Ambuja Cements LTD. vs. State Of Gujarat

Facts

Ambuja Cements Ltd. (Petitioner) sought a writ of certiorari to quash a communication dated June 28, 2019, from the Assistant Commissioner of State GST (Respondent No. 2). The Petitioner, registered under the VAT Act and CST Act, uses High Speed Diesel (HSD) for mining activities. Following the introduction of GST, HSD, along with other specified items, remained outside the GST purview but was clarified as falling under Section 8(3)(b) of the CST Act. The Petitioner requested permission to issue Form C for HSD purchases. Respondent No. 2 denied this, stating that since HSD was listed as an existing commodity under the CST Act after GST, CST was no longer operational. The Petitioner argued that their CST registration was active and amended to include HSD for mining and electricity generation, and therefore, permission to issue Form C should be granted.

Held

The Court held that the issue was no longer res integra in light of the decision in Gaurav Contractors Company vs. State of Gujarat. The Court reasoned that dealers dealing in goods covered by both the GST Act and the CST Act (as amended to include items outside GST) are permitted to hold separate registrations under both Acts. Specifically, dealers dealing in commodities falling within the amended definition of 'goods' under Section 2(d) of the CST Act were required to be registered under the CST Act to benefit from the reduced tax rate under Section 8. The Court found that the authority itself had amended the Petitioner's CST and VAT registration to include HSD for mining and electricity generation. Therefore, the respondent No. 2 could not have declined permission to issue Form C. The Court quashed the impugned communication and directed the respondent No. 2 to issue Form C for the quarter ended December 31, 2018, and subsequent quarters.

Key Issues

1. Whether a dealer registered under the Goods and Services Tax (GST) Act can also be registered under the Central Sales Tax (CST) Act for goods not covered by GST, specifically concerning the issuance of Form C for inter-state purchases of High Speed Diesel (HSD). Petitioner's Argument: The Petitioner contended that as their registration under the CST Act remained uncancelled and had been amended to include HSD for specific activities, the respondent could not reject their application for issuing Form C. They relied on the Gujarat High Court's decision in Gaurav Contractors Company vs. State of Gujarat, which held that dealers registered under GST can also be registered under CST for goods falling within the CST Act's ambit to avail reduced tax rates under Section 8. Revenue's Argument: The Revenue argued that the amended definition of 'goods' under Section 2(d) of the CST Act, post-Taxation Laws (Amendment Act, 2017), is restricted to six specified items. Since the Petitioner was not dealing in or claiming usage of these items prior to the CST Act's amendment, the respondent No. 2 was justified in declining permission to issue Form C.