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.
Conclusion: This judgement underscores the state’s obligation to ensure procedural fairness in tax matters, particularly regarding the issuance of “C” forms under the CST Act.
FULL TEXT OF THE JUDGMENT/ORDER OF RAJASTHAN HIGH COURT
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 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.
