M/S. Goodwill Advance Stone Company vs. State Of Rajasthan

Held

The Court held that it is an obligatory duty of the respondents to issue 'C' forms to the petitioner in respect of High Speed Diesel procured for mining purposes through interstate trade. The Court found no distinction between the petitioner's case and the precedent set in Carpo Power Limited (supra) and Hindustan Zinc Limited (supra). The reasoning was based on the fact that High Speed Diesel was retained in Section 9 of the GST Act as a 'good', and the petitioner's registration under Section 7(2) was valid and subject to cancellation only under Section 4 of the CST Act. The Court directed the respondents to issue 'C' forms. Furthermore, 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 who collected the excess tax. The concerned authorities were directed to process such claims within twelve weeks of being made in writing by the petitioners, along with requisite documents. The judgment was made subject to the decision of the appeal bearing number DBSAW No. 1361/2018 (State of Rajasthan Vs. Special Lime).

Facts

The petitioner, M/s. Goodwill Advance Stone Company, filed a writ petition before the Rajasthan High Court. The petitioner sought relief concerning the issuance of 'C' forms for High Speed Diesel procured for mining purposes through interstate trade. The controversy was stated to be squarely covered by a previous judgment of the same High Court in S.B. Civil Writ Petition No.2440/2018 (M/s. J.K. Cement Limited Vs. State of Rajasthan & Ors.), decided on 18.02.2019. This earlier judgment, in turn, relied on the decision in Carpo Power Limited Vs. State of Haryana & Ors., which had attained finality with the dismissal of a Special Leave Petition by the Supreme Court. The revenue acknowledged that an appeal against a related order was pending before the Division Bench, but no stay had been granted, and the order was being complied with.

Key Issues

1. Whether the respondents are liable to issue 'C' forms to the petitioner for High Speed Diesel procured for mining purposes through interstate trade, in light of Section 9 of the GST Act defining 'goods' and Section 7(2) of the Act regarding registration. Petitioner's contention: The petitioner argued that High Speed Diesel, along with other specified petroleum products, was retained by Parliament in Section 9 of the GST Act while defining 'goods'. They contended 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, it was an obligatory duty of the respondents to issue 'C' forms. Revenue's contention: The revenue did not explicitly record any arguments against the petitioner's claim in the provided text. However, it was noted that an appeal had been preferred before the Division Bench against a similar order, though no stay was granted.