M/S. Kanhaiya Lal Rameshwar Das vs. State Of Rajasthan

Facts

The petitioner, M/s. Kanhaiya Lal Rameshwar Das, sought a direction from the Rajasthan High Court to compel the respondents to issue 'C' forms. The petitioner had previously purchased High Speed Diesel (HSD) against 'C' forms for manufacturing activities under the pre-GST regime. However, this was subsequently denied due to an amendment in the Central Sales Tax (CST) Act, specifically to Clause (d) of Section 2, which defines 'Goods'. The denial of 'C' forms was based on this amendment. The petitioner argued that they were entitled to these forms for HSD procured for mining purposes through interstate trade.

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. The Court found that the issue was squarely covered by its previous judgment in Hindustan Zinc Limited Vs. State of Rajasthan & ors. The reasoning was that despite the amendment to the CST Act, the principle established in the Hindustan Zinc case regarding the issuance of 'C' forms for goods used in mining through interstate trade remained applicable. The ratio decidendi is that amendments to the definition of 'Goods' under the CST Act do not preclude the issuance of 'C' forms for High Speed Diesel procured for mining purposes via interstate trade. The Court 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. These claims are to be processed 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 to the petitioner for the procurement of High Speed Diesel for mining purposes through interstate trade, considering the amendment to Clause (d) of Section 2 of the CST Act. Petitioner's Contention: The petitioner argued that they were entitled to 'C' forms for the procurement of High Speed Diesel for their manufacturing and mining activities, as they had been doing so in the pre-GST regime. They relied on the principle that such forms should continue to be issued for interstate purchases of goods used in mining. Respondents' Contention: The respondents denied the issuance of 'C' forms based on an amendment to the definition of 'Goods' under Clause (d) of Section 2 of the CST Act. The judgment does not explicitly detail the respondents' arguments beyond this reliance on the statutory amendment.