M/S. Shree Dev Stone And Company vs. The State Of Rajasthan

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. (S.B. Civil Writ Petition No. 5506/2018). The ratio decidendi is that despite amendments to the definition of 'Goods' in the CST Act, 'C' forms should continue to be issued for HSD 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 are entitled to a refund or adjustment from the concerned authorities. Such claims are to be processed within twelve weeks of being made in writing by the petitioner with requisite documents.

Facts

The petitioner, M/s. Shree Dev Stone & Company, 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 practice was denied post-GST due to an amendment to Clause (d) of Section 2 of the CST Act, which redefined 'Goods'. The petitioner argued that this denial was wrongful. The respondents, including the State of Rajasthan and the Union of India, were represented. The case was heard by the High Court of Judicature for Rajasthan at Jodhpur.

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 amendment to the definition of 'Goods' under the CST Act? Petitioner's Contention: The petitioner argued that despite the amendment to Section 2(d) of the CST Act, they are entitled to 'C' forms for HSD procured for their manufacturing activities, as was the practice 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 manufacturing. Respondents' Contention: The respondents denied the issuance of 'C' forms based on the amendment to the definition of 'Goods' in the CST Act, implying that HSD might no longer fall within the scope for which 'C' forms are applicable under the amended provisions.