Tafe Motors And Tractors Limited vs. Union Of INDIA

Held

The Court allowed the writ petition, directing the respondents to issue a C-form to the petitioner within four weeks for High Speed Diesel procured for manufacturing automobiles. The Court found that the petitioner had indeed availed the benefit of Form-C under the earlier regime prior to GST, and therefore, could not be denied this benefit. The Court reiterated that the issue of Form-C issuance is settled law, referencing the Division Bench judgment in 'The State of Rajasthan & Ors. Vs. ASI Industries Ltd. & Ors.'. Furthermore, the Court held that if the petitioner had paid any amount due to the wrongful refusal to issue the C-form, they would be entitled to a refund or adjustment, and directed the concerned authorities to process such claims within twelve weeks.

Facts

The petitioner, Tafe Motors And Tractors Limited, sought a direction from the Rajasthan High Court to issue a C-form for High Speed Diesel (HSD) procured for use as raw material in its manufacturing plant in Alwar. The petitioner was previously registered under the Central Sales Tax Act, 1956, and the Rajasthan VAT Act, 2003, and had availed concessional tax rates using Form-C under Section 8(1) read with Section 8(3)(b) of the 1956 Act. After the GST regime, the petitioner registered under GST. The petitioner relied on previous judgments of the High Court, including a Division Bench decision in 'The State of Rajasthan & Ors. Vs. ASI Industries Ltd. & Ors.', to support its claim. The respondents argued that the benefit of Form-C could only be granted if the petitioner had availed it prior to the GST regime.

Key Issues

1. Whether the petitioner is entitled to the issuance of a C-form for High Speed Diesel procured for use as a raw material in its manufacturing activities, considering the transition to the GST regime and its prior availing of such benefits under the Central Sales Tax Act, 1956? (Question of law) Petitioner's Arguments: The petitioner contended that the issue of granting Form-C is no longer res integra, citing the Division Bench judgment in 'The State of Rajasthan & Ors. Vs. ASI Industries Ltd. & Ors.' and similar orders by co-ordinate benches in 'ACC Limited Vs. State of Rajasthan & Ors.' and 'M/s The Hi-Tech Gears Ltd. Vs. Union of India & Ors.'. They argued that having availed the benefit prior to GST, they should continue to receive it. Respondents' Arguments: The respondents conceded that the issue of Form-C is no longer res integra but argued that the petitioner must demonstrate they were receiving this benefit prior to the GST regime. They contended that if the benefit was not received before GST, it cannot be granted subsequently.