M/S Cheer Sagar vs. Union Of INDIA
Original PDF →Facts
The petitioner, M/s Cheer Sagar, through its partner Ravi Poddar, filed a writ petition before the Rajasthan High Court. The petition challenged an unspecified order or action by the Assistant Commissioner, Circle-O State Tax, Jaipur, and other respondents, concerning the denial of C-Forms for the purchase of High Speed Diesel for mining purposes. The dispute arose due to the transition to the Goods and Services Tax (GST) regime, which rendered the petitioner's CST registrations ineffective. The petitioner had to migrate to GST registration, leading to the denial of C-Forms. The procedural history indicates that similar issues have been addressed by the Rajasthan High Court in previous judgments.
Held
The Court held that the denial of C-Forms in the context of the transition to the GST regime, which rendered CST registrations ineffective, was inadvertent and beyond the assessee's control. This principle was established by the Division Bench of the Rajasthan High Court in the case of The State of Rajasthan & Others Versus ASI Industries Limited & others, which was followed by coordinate benches. The Supreme Court had also dismissed a Special Leave Petition against the Division Bench's judgment. Consequently, the Court allowed the writ petition, directing the respondents to issue C-Forms for the purchase of High Speed Diesel procured by the petitioner for mining purposes from inter-state trade. The Court further directed that 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, with claims to be processed within 12 weeks.
Key Issues
1. Whether the denial of C-Forms for the purchase of High Speed Diesel for mining purposes, due to the transition to the GST regime and the consequent ineffectiveness of CST registrations, is justified? (Question of law, turning on the interpretation of provisions related to inter-state trade and the impact of GST migration). Petitioner's Argument: The petitioner contended that the denial of C-Forms was inadvertent and beyond their control, stemming from the exigencies of the GST regime's advent, which compelled them to migrate to GST registrations. They relied on previous judgments of the Rajasthan High Court and other High Courts that have granted relief in similar situations. Revenue's Argument: The respondents, while opposing on merits, admitted that the issue was covered by previous judgments of the Division Bench of the High Court and followed by coordinate benches. They did not present a separate argument against the core issue but acknowledged the binding nature of prior decisions.
Sections Cited
Section 73, Section 129, Rule 86A
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
Order 01/10/2020 Learned counsel for both the parties jointly submit that the issue involved in the present writ petition is no more res-integra in view of the judgment passed by this Court in identical writ petitioner bearing SB Civil Writ Petition No.9749/2020 (Gravita India Limited Vs. Union of India & Ors), decided on 30/09/2020 wherein it has been held as under:- "The issue involved in the present writ petition is no more res integra in view of the judgment passed by the Division Bench of this court in D.B. Special Appeal (Writ) No.41/2019 titled as The State of Rajasthan & Others Versus ASI Industries Limited & others decided on 16.7.2019, which has been (2 of 3) [CW-9712/2020] followed by this court as well as the other co-ordinate Benches of this court. Although, learned counsel for the respondents has opposed on merits of the case, but frankly admits that the issue stands already covered and decided by the Division Bench of this court and followed by the co-ordinate Benches. The Division Bench in the case of The State of Rajasthan (supra) has observed as under:- “4. This Court has been informed that the special appeal preferred by the State of Haryana against the decision in Carpo Power Limited (supra) (in SLP No.20572/2018), was rejected on 13.08.2018. 5. The learned Single Judge in this case relied upon decision in Hindustan Zinc Limited Versus The State of Rajasthan & Ors. 2019 (64) GSTR 366 (Raj.), decided on 18.05.2018 where a direction was issued to the State of Rajasthan, to provide relief. This Court notices that in Hindustan Zinc Limited (supra) also relied upon Carpo Power Limited. Further, other High Courts to have followed the said ruling in Carpo Power Limited (supra)-the Madras High Court, in the Ramco Taxes 2019 (64) GSTR 374 (Mad); the Orissa High Court in N.K. Bhojani (P) Ltd. Versus Commissioner of Commercial Taxes 2019 (24) GSTL 28; and Star Cement Meghalaya & Ors. Versus State of Assam & Ors., 2019 (21) GSTL 484. 6. In the light of the above discussion, this Court is of the opinion that denial of C Forms is purely on account of exigencies of advent of the GST regime which compelled the assessee to migrate to and obtain GST Registrations which rendered at the same time its CST registrations ineffective. This was inadvertent and beyond its control.” It is also informed by the learned counsel for the petitioner that the SLP has already been dismissed by the Supreme Court against the judgment passed by the Division Bench. Keeping in view the above, the present writ petition is allowed and the respondents are held liable to issue C-Form in the purchase of High Speed Diesel procured by the petitionercompany for mining purposes from inter-state trade. In the event of the petitioner having paid any amount on account of respondents wrongfully refusal to issue C-Form, the petitioner would be entitled to refund/ adjustment of the same from the concerned
(3 of 3) [CW-9712/2020] authorities and collect the taxes. The concerned authorities are directed to process the claim within 12 weeks from today. The writ petition is accordingly allowed." In view of above, the present writ petition is allowed and the petitioner shall be entitled to the same relief as granted by this Court in the case of Gravita India Limited (supra) and the order passed in the case of Gravita India Limited (supra) shall apply mutatis-mutandis in the case of the present petitioner. (SANJEEV PRAKASH SHARMA),J Raghu/201
Reproduced from the public record of the Rajasthan High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.