M/S. Choudhary Construction Company vs. State Of Rajasthan

Facts

The petitioner, M/s. Choudhary Construction Company, sought a direction from the Rajasthan High Court to compel the respondents (State of Rajasthan and Union of India) to issue 'C' forms. The petitioner had historically purchased High Speed Diesel (HSD) against 'C' forms for manufacturing activities during the pre-GST regime. However, this practice was subsequently denied due to an amendment in Clause (d) of Section 2 of the CST Act, which altered the definition of 'Goods'. The denial of 'C' forms led to the present writ petition challenging this action by the revenue authorities.

Held

The Court held that the respondents are liable to issue 'C' forms in respect of High Speed Diesel procured for mining through interstate trade. The Court found that the issue was no longer res integra and was squarely covered by the ratio of its own previous judgment in Hindustan Zinc Limited Vs. State of Rajasthan & ors. (S.B. Civil Writ Petition No. 5506/2018). The reasoning was that the amendment to the CST Act did not preclude the issuance of 'C' forms for HSD used in mining. The ratio decidendi is that 'C' forms are to be issued for HSD procured for mining through interstate trade, irrespective of the amendment to the definition of 'Goods' in Section 2(d) of the CST Act, as per the precedent set in the Hindustan Zinc Limited case. The Court directed that if the petitioner had paid any amount on account of the wrongful refusal to issue 'C' forms, they are entitled to a refund or adjustment of such excess tax. The concerned authorities are to process such claims within twelve weeks of the petitioner making a written claim and furnishing requisite documents.

Key Issues

1. Whether the respondents are liable to issue 'C' forms in respect of High Speed Diesel procured for mining through interstate trade, considering the amendment to the definition of 'Goods' under Clause (d) of Section 2 of the CST Act? Petitioner's contention: The petitioner argued that despite the amendment to the CST Act, they should continue to be issued 'C' forms for the procurement of High Speed Diesel for their mining activities. They relied on the principle that such forms were issued in the pre-GST regime and the amendment should not adversely affect their established practice. Revenue's contention: The respondents denied the issuance of 'C' forms based on the amendment to the definition of 'Goods' under the CST Act, implying that HSD no longer qualified for 'C' form benefits post-amendment. The judgment does not explicitly record any specific arguments or precedents cited by the revenue beyond this statutory interpretation.