M/S. Bundi Silica Sand Supply Company vs. State Of Rajasthan

CW/7574/2019HC RajasthanGSTCNR RJHC01035388201910 October 2023Bench: VIJAY BISHNOI,YOGENDRA KUMAR PUROHIT2 pages

AI SummaryAllowed

Facts

The petitioner, M/s. Bundi Silica Sand Supply Company, sought a direction from the Rajasthan High Court to issue 'C' forms. Previously, the petitioner purchased High Speed Diesel (HSD) against 'C' forms for manufacturing activities under the pre-GST regime. However, this was denied following an amendment to Clause (d) of Section 2 of the CST Act, which amended the definition of 'Goods'. The petitioner contended that HSD purchased for mining purposes through interstate trade should still be eligible for 'C' forms. The respondents, including the State of Rajasthan and the Union of India, had refused to issue the 'C' forms based on the amended provisions.

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. This decision was based on the ratio of the Court's previous judgment in Hindustan Zinc Limited Vs. State of Rajasthan & Ors. (S.B. Civil Writ Petition No. 5506/2018). The Court found that the issue was no longer res integra and was squarely covered by the precedent. Consequently, if the petitioner had paid any amount 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 were directed to process such claims within twelve weeks of the petitioner making a written claim and furnishing requisite documents.

Key Issues

1. Whether the petitioner is entitled to the issuance of 'C' forms for the purchase of High Speed Diesel for mining purposes through interstate trade, despite the amendment to the definition of 'Goods' under Clause (d) of Section 2 of the CST Act? (Question of law) The petitioner argued that High Speed Diesel procured for mining purposes through interstate trade should continue to be eligible for 'C' forms, as was the practice prior to the amendment. They relied on the principle that such essential inputs for industrial activity should not be unduly burdened. The respondents, on the other hand, based their refusal on the amendment to the definition of 'Goods' in the CST Act, which they contended excluded HSD from being considered 'Goods' for the purpose of 'C' form issuance in the context of interstate sales.

Sections Cited

Section 2(d)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[2023:RJ-JD:34208-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 7574/2019 M/s. Bundi Silica Sand Supply Company, 7-A, Vallabh Nagar, Kota- 324007, Rajasthan, India, Through Its Partner, Shri Navneet Bansal S/o Shri Chandra Bihari Bansal, Aged About 55 Years, Resident Of Silica House, Kunhadi, Kota, Rajasthan, India. ----Petitioner Versus 1. State Of Rajasthan, Through Principal Secretary Department Of Finance, Secretariat, Jaipur. 2. The Commissioner, Commercial Taxes Department, Government Of Rajasthan, Jaipur. 3. The Assistant Commissioner, Special Circle-Ii, Commercial Taxes, Kota. 4. Union Of India, Through Its Secretary, Ministry Of Finance, Nirman Bhawan, New Delhi. 5. The Under Secretary (St-Ii), Ministry Of Finance, Department Of Revenue, State Tax Division, New Delhi. 6. Indian Oil Corporation Limited, Marketing Division, Jodhpur Divisional Office, Sector-12, Chopasani Housing Board, Jodhpur. ----Respondents For Petitioner(s) : Mr. Pankaj Kumar Bohra For Respondent(s) : Mr. Sunil Bhandari HON'BLE MR. JUSTICE VIJAY BISHNOI HON'BLE MR. JUSTICE YOGENDRA KUMAR PUROHIT

Order 10/10/2023 The prayer in the present writ petition is for issuance of a direction to the respondents to issue “C” form to the petitioner company. It is stated that the petitioner company was till now purchasing the High Speed Diesel against “C” form for the various

[2023:RJ-JD:34208-DB] (2 of 2) [CW-7574/2019] activities of manufacturing in pre-GST regime. Thereafter, the same is being denied on the ground that in pursuance to an amendment brought about in the provisions of the CST Act whereby Clause (d) of Section 2 of the CST Act which contained the definition of ‘Goods’ has since been amended. It is not disputed that the issue involved in the present case is no more res integra and is squarely covered by the ratio of the judgment rendered by this Court in the case of Hindustan Zinc Limited Vs. State of Rajasthan & Ors. (S.B. Civil Writ Petition No. 5506/2018) & other connected writ petitions decided on 18.05.2018. Accordingly, the present writ petition is also allowed in the same terms as S.B. Civil Writ Petition No. 5506/2018. 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 petitioner having had to pay any amount on account of the respondents wrongful refusal to issue `C' Forms, the petitioner shall be entitled 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 petitioner in writing and the petitioners’ furnishing the requisite documents/form. Stay petition is also decided accordingly. (YOGENDRA KUMAR PUROHIT),J (VIJAY BISHNOI),J 101-Arun/-

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.