M/S. Binani Cement Limited vs. State Of Rajasthan

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 reasoning was based on the fact that Parliament has retained high speed diesel, along with other specified petroleum products, under Section 9 of the GST Act when defining 'goods'. Furthermore, the Court noted that the registration under Section 7(2) of the Act was still valid and could only be cancelled within the parameters of Section 4 of the CST Act. Consequently, the Court found it to be an obligatory duty of the respondents to issue 'C' forms to the petitioner, and any failure to do so would be without authority of law. The Court found no distinguishing factors between the petitioner's case and that of the petitioner in the cited case of "Corpo Power Limited". The operative direction was that the respondents are liable to issue 'C' Forms, and if the petitioner had paid any amount due to the wrongful refusal to issue 'C' Forms, they are entitled to a refund and/or adjustment from the concerned authorities who collected the excess tax. The concerned authorities were directed to process such claims within twelve weeks of their submission in writing with requisite documents.

Facts

The petitioner, M/s. Binani Cement Limited, filed a writ petition before the Rajasthan High Court challenging the inaction of the respondents, including the State of Rajasthan and the Union of India, in issuing 'C' forms. The petitioner argued that the controversy was covered by a previous judgment of a coordinate bench in "Hindustan Zinc Ltd. Vs. State of Rajasthan & Ors.". The respondents, represented by the Commercial Taxes Department, agreed that the controversy was identical to the cited case. The dispute pertains to the procurement of High Speed Diesel for mining purposes through interstate trade and the subsequent entitlement to 'C' forms.

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, considering the provisions of the GST Act and the CST Act. Petitioner's Contention: The petitioner argued that the matter is squarely covered by the order dated 18.5.2018 in "Hindustan Zinc Ltd. Vs. State of Rajasthan & Ors.", implying that the respondents have an obligatory duty to issue 'C' forms. They relied on the principle that High Speed Diesel, along with other specified goods, is retained under Section 9 of the GST Act, and that registration under Section 7(2) of the Act, if valid and not cancelled, necessitates the issuance of 'C' forms. Revenue's Contention: The respondent Commercial Taxes Department conceded that the controversy in the present writ petition is identical to that in the cited writ petition and agreed that the present petition should be decided in the same terms.