Acc Limited - Lakheri Cement Works vs. State Of Rajasthan
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The petitioner, ACC Limited-Lakheri Cement Works, filed a writ petition seeking a direction to issue "C" Forms and to obtain a refund or adjustment of excess tax collected by the respondents. The petitioner argued that the respondents wrongfully refused to issue "C" Forms. The petitioner relied on previous High Court judgments, specifically ASI Industries Limited Versus Union of India & Ors., which in turn relied on Hindustan Zinc Limited Vs. The State of Rajasthan & Ors. The respondent-State had appealed the ASI Industries Limited decision, but the Division Bench upheld the Single Bench's order, dismissing the appeal. The Division Bench noted that the denial of "C" Forms was due to the exigencies of the GST regime making CST registrations ineffective, which was inadvertent and beyond the assessee's control.
Held
The Court held that the respondents are liable to issue "C" Forms in respect of High Speed Diesel procured by the petitioner company for mining purposes through interstate trade. The reasoning was based on the established precedents of ASI Industries Limited Versus Union of India & Ors. and Hindustan Zinc Limited Vs. The State of Rajasthan & Ors., which were affirmed by the Division Bench. The Court found that the denial of "C" Forms was due to the transition to the GST regime, making CST registrations ineffective, and this was an inadvertent situation beyond the assessee's control. Consequently, if the petitioner had paid any excess tax due to the wrongful refusal to issue "C" Forms, they are entitled to a refund or adjustment of such excess tax from the concerned authorities. The concerned authorities are directed to process such claims within twelve weeks of the petitioner making a written claim and furnishing the requisite documents. No issue was expressly left undecided.
Key Issues
1. Whether the respondents are liable to issue "C" Forms in respect of High Speed Diesel procured for mining purposes through interstate trade, considering the transition to the GST regime? (Question of law) 2. Whether the petitioner is entitled to a refund or adjustment of any excess tax paid due to the wrongful refusal to issue "C" Forms? (Question of law) Petitioner's Arguments: The petitioner contended that they are entitled to the issuance of "C" Forms for interstate procurement of High Speed Diesel for mining purposes. They argued that the wrongful refusal by the authorities to issue these forms led to excess tax collection, for which they should be granted a refund or adjustment. The petitioner relied on the High Court's decision in ASI Industries Limited Versus Union of India & Ors., which followed the precedent set in Hindustan Zinc Limited Vs. The State of Rajasthan & Ors. Respondents' Arguments: The respondent-State argued that the denial of "C" Forms was a consequence of the advent of the GST regime, which rendered CST registrations ineffective. They acknowledged that this was inadvertent and beyond the control of the assessee. The State's appeal against the ASI Industries Limited judgment was dismissed by the Division Bench.
Sections Cited
Section 73, Section 129, Rule 86A
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
Order 17/09/2019
The instant petition has been filed by the petitioner Company for seeking a direction to issue “C” Forms and further to get
(2 of 5) [CW-10659/2019] refund/adjustment of the excess tax said to be collected by the respondents Authorities on account of wrongful refusal of “C” Forms.
Learned counsel for the petitioner places reliance on the order passed in S.B. Civil Writ Petition No.5475/2018 (ASI Industries Limited Versus Union of India & Ors.), decided by this Petition No.5506/2018 (Hindustan Zinc Limited Vs. The State of Rajasthan & Ors.) The relevant portion of the order passed by the this Court is quoted as under:- “This Court finds that the similar controversy has been decided at Principal Seat, Jodhpur in the case of Hindustan Zinc Limited Vs. The State of Rajasthan & Ors. (supra) and accordingly, the present writ Rajasthan & Ors. (supra) is reproduced hereunder:- “Accordingly, the present writ petitions are allowed in the same terms as Corpo Power Limited (supra). It is held that the respondents are liable to issue “C” Forms in respect of the High Speed Diesel procured for mining purposes through interstate trade. In the event of the petitioners having had to pay any amount on account of the respondents
(3 of 5) [CW-10659/2019] wrongful refusal to issue “C” Forms the petitioners shall be entitiled to refund and/or adjustment of the same from the concerned authorities who collected the excess tax. The Concerned Authorities shall process such a claim within twelve weeks of the same being made by the petitioners in writing and the petitioners
furnishing
the requisite documents/form.” State of Rajasthan & Ors. (supra) is applied in the present case as well. It goes without saying that in case, any decision is rendered by the Division Bench or Higher Court, the parties would be bound by the same.”
Mr. R.B. Mathur, learned counsel appearing for the respondent-State submitted that against the view taken by this No.41/2009 (The State of Rajasthan & Ors. Versus ASI Industries Limited & Ors.), before the Division Bench and the Division Bench vide its order dated 16.07.2019 has decided the said appeal and upheld the order passed by the Single Bench. The relevant portion of the order passed by the Division Bench is quoted 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. (4 of 5) [CW-10659/2019]
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 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.
Consequently, the directions issued by the learned Single Judge are upheld. The appeal is accordingly dismissed.”
This Court finds that the present controversy is squarely covered by the decisions rendered by the Single Bench in the case of ASI Industries (supra) as also affirmed by the Division Bench.
The present writ petition accordingly needs to be allowed and it is held that the respondents are liable to issue “C” Forms in respect of High Speed Diesel procured by the petitioner company
(5 of 5) [CW-10659/2019] for mining purpose through inter State trade. In the event of the petitioner having had to pay any amount on account of the respondents wrongful refusal to issue “C” Forms, the petitioner will be entitled to refund/adjustment of the same from the concerned authorities who collected the excess tax. The concerned authorities shall process such claim within 12 weeks of the same being made by the petitioner in writing and the petitioner furnishing the requisite form/document.
The writ petition is accordingly allowed. (ASHOK KUMAR GAUR),J Ramesh Vaishnav /86/20
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.