M/S. J.K. Cement Limited vs. State Of Rajasthan And Ors.

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. This decision is based on the reasoning that High Speed Diesel is retained within the definition of 'goods' under Section 9 of the GST Act, and the petitioner's registration under Section 7(2) is valid. The Court found no distinction between the petitioner's case and the precedent set in Carpo Power Limited and Hindustan Zinc Limited. The operative directions are that if the petitioner had to pay any amount due to the wrongful refusal to issue 'C' Forms, they are entitled to a refund or adjustment from the concerned authorities. These claims are to be processed within twelve weeks of being made in writing with requisite documents. However, the allowance of the writ petition is made subject to the decision of the appeal bearing number DBSAW No. 1361/2018 (State of Rajasthan vs. Special Lime).

Facts

M/s. J.K. Cement Limited, through its Dy. General Manager, filed a writ petition before the Rajasthan High Court challenging an action by the Commercial Taxes Department. The petitioner operates multiple cement and white cement units in Rajasthan. The core issue revolves around the issuance of 'C' forms for High Speed Diesel procured for mining purposes through interstate trade. The petitioner contended that the respondents were obligated to issue these forms. The case was argued based on previous judgments of the High Court and the Supreme Court, specifically Carpo Power Limited vs. State of Haryana & Ors. and Hindustan Zinc Limited vs. The State of Rajasthan & Ors.

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, under Section 9 of the GST Act and Section 7(2) of the Act, considering the classification of goods under GST. Petitioner's Argument: The petitioner argued that High Speed Diesel, along with other specified petroleum products, is retained within the ambit of 'goods' under Section 9 of the GST Act. They further contended that their registration under Section 7(2) of the Act is valid and has not been cancelled, making it obligatory for the respondents to issue 'C' forms. They relied on the Supreme Court's dismissal of an SLP against the Carpo Power Limited judgment and this Court's decision in Hindustan Zinc Limited. Revenue's Argument: The Revenue stated that an appeal had been preferred before the Division Bench against a similar order in SBCWP No. 5506/2018, but a stay had been refused, and the order was being complied with.