Case Law Details
Kanhaiya Lal Rameshwar Das Vs State of Rajasthan (Rajasthan High Court)
Introduction: In the landmark case of Kanhaiya Lal Rameshwar Das Vs State of Rajasthan, the Rajasthan High Court directed the state to issue “C” forms to the petitioner company for high-speed diesel procured for mining purposes through inter-state trade. This directive stands in contrast to previous denials based on amendments in the Central Sales Tax (CST) Act.
Analysis: The core issue in this case pertained to the denial of “C” forms to the petitioner company for their procurement of high-speed diesel for manufacturing activities. This denial emerged from a critical amendment to the CST Act, specifically Clause (d) of Section 2, which altered the definition of ‘Goods.’
The judgement not only affirms the petitioner’s right to acquire “C” forms but also entitles the petitioner to any refunds or adjustments arising from the wrongful refusal to issue these forms. Any excess tax that the petitioner had to pay due to this refusal will be processed for refund or adjustment within twelve weeks of making a formal claim.
This ruling draws from a previous judgement by the same court in the case of Hindustan Zinc Limited Vs. State of Rajasthan & ors. (S.B. Civil Writ Petition No. 5506/2018), decided on 18.05.2018.
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