Case Law Details
Legend Distilleries Pvt. Ltd. Vs State Of Chhattisgarh Through Secretary (Chhattisgarh High Court)
ENA and the Malt Spirit in its original form are not the alcoholic liquor fit for human consumption and would therefore, not come within the amended definition of clause(d) of Section 2 of the CST Act and in view thereof, the petitioner would not be entitled to get the ‘C’ Form, as claimed by the petitioner herein.
FULL TEXT OF THE JUDGMENT/ORDER OF CHHATTISGARH HIGH COURT
By way of this petition, the petitioner is praying for issuance of an appropriate direction, commanding the Respondent Authorities to issue “C” Form to the petitioner and further to consider the application filed by the petitioner for issuance of “C” Form.
2. Learned counsel for the petitioner submits that the petitioner is a registered dealer under the CST Act and the Chhattisgarh Value Added Tax Act, 2005 (hereinafter referred to as “VAT Act”) and is also a License Holder under the State Excise Department, whereby the petitioner has been issued the license of foreign liquor-9 and authorizing to manufacture the IMFL. It is contended that the material required for manufacturing of IMFL was ENA and Malt Spirit and the petitioner has valid permit to purchase the same. Further contention of learned counsel for the petitioner is that the petitioner was being issued “C” form till 30-06-2017 for the goods covered under Section 2(d) of the CST Act, [as applicable up to 30-06-2017], so as to get the concession of the levy of tax at the rate of 2% by the respondent department. However, with the enforcement of the Goods and Services Tax Act, 2017 (hereinafter referred to as “GST Act”), the respondents have denied the facility of concessional tax by declining to issue “C” Form as required under the CST Act. It is contended further that as the ENA and Malt Spirit are used for human consumption, therefore, the petitioner is entitled for “C” Form on purchase of such goods. However, owing to amendment in the definition of “Goods” provided under Section 2(d) of the CST Act, which came into force with effect from 05-05-2017 by virtue of Taxation Laws Amendment Act, 2017, dated 04-05-2017, the petitioner has been denied the said “C” Form. While inviting attention to Section 9(2) of the GST Act, it is contended further that the Alcoholic Liquor used for human consumption has been kept away from the ambit of the levy of GST and therefore, despite amendment in the definition of “Goods” under CST Act, it still covers Alcoholic Liquor, which is used for human consumption for inter-state purchase of it. The respondent authorities have, therefore, erred in declining the petitioner for issuance of said “C” Form. In support of his contentions, learned counsel for the petitioner has placed his reliance upon the decision rendered by the Coordinate Bench of this Court in the matter of Shree Raipur Cement Plant vs. State of Chhattisgarh and others, decided on 18-05-2018 in Writ Petition (T)No.83 of 2018.
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