Aegis Beverages PVT. LTD. vs. State Of Chhattisgarh

Held

The Court held that the petitioner's claim for "C" forms was not sustainable. It found that the amended definition of "Goods" under Section 2(d) of the CST Act, effective from May 5, 2017, specifically includes "alcoholic liquor for human consumption." However, based on the Supreme Court's judgment in *Synthetics and Chemicals Ltd and others vs. State of U.P. and others*, ENA and Malt Spirit in their original form are not considered alcoholic liquor fit for human consumption. Therefore, they do not fall within the amended definition of "Goods" under the CST Act. Consequently, the respondent authorities were justified in denying the "C" forms. The Court also distinguished the petitioner's reliance on *Shree Raipur Cement Plant vs. State of Chhattisgarh*, noting that the earlier case dealt with "High Speed Diesel" and the requirement of a specific notification under Section 9(2) of the GST Act, which is not applicable to the present case. The Court found no substance in the petition and dismissed it.

Facts

The petitioner, Aegis Beverages Pvt. Ltd., challenged a communication dated July 26, 2019, from the Commissioner, Commercial Taxes Department, Chhattisgarh. This communication denied the petitioner the issuance of "C" forms, which are necessary for procuring Extra Neutral Alcohol (ENA) and Malt Spirit for manufacturing Indian Made Foreign Liquor (IMFL). The denial meant the petitioner could not avail the concessional tax rate under the Central Sales Tax Act, 1956 (CST Act). The petitioner had been issued "C" forms until June 30, 2017, but after the Goods and Services Tax (GST) Act, 2017, came into force, the authorities refused to issue them, citing an amendment to the definition of "Goods" under the CST Act.

Key Issues

1. Whether Extra Neutral Alcohol (ENA) and Malt Spirit, used for manufacturing Indian Made Foreign Liquor (IMFL), fall within the amended definition of "Goods" under Section 2(d) of the Central Sales Tax Act, 1956, to entitle the petitioner to "C" forms for concessional tax rates. Petitioner's arguments: The petitioner contended that ENA and Malt Spirit are used for human consumption and thus should be covered under the definition of "Goods" for "C" form purposes, despite the amendment to Section 2(d) of the CST Act. They argued that Section 9(2) of the GST Act, which exempts alcoholic liquor for human consumption from GST, supports their claim. They relied on the Coordinate Bench's decision in *Shree Raipur Cement Plant vs. State of Chhattisgarh*. Respondents' arguments: The State argued that the amendment to Section 2(d) of the CST Act specifically defines "Goods" to include only "alcoholic liquor for human consumption," and ENA and Malt Spirit, in their original form, are not fit for human consumption. They relied on the Supreme Court's decision in *Synthetics and Chemicals Ltd and others vs. State of U.P. and others*.