Burnpur vs Union Of India & Ors
2021 Latest Caselaw 75 Cal

07.01.2021

RP Ct.04 WPA 11870 of 2019 M/s. Steel Authority of India Ltd. IISCO Plant, Burnpur Versus Union of India & Ors.

             Mr. Rahul Tangri
             Mr. Dipankar Majumder
                                       ....    For petitioner
             Mr. Abhrotosh Majumder, Ld. AAG
             Mr. Soumitra Mukherjee
             Mr. Avra Majumder
                                       ....    For State
             Mr. Vipul Kundalia
             Mr. Tapan Bhanja
                                       ...For UOI

Petitioner is before Court seeking to compel Joint

Commissioner of Commercial Tax, Asansol Charge,

Department of Commercial Taxes to issue requisite Form

"C" denied by letter dated 6 th May, 2019. Order sheet

bears record of submissions of petitioner to effect that

several High Courts have taken view that consumption of

High Speed Diesel (HSD) for purpose of manufacturing

makes purchase of such diesel at concessional rate being

made available to the manufacturer. Reliance have been

placed, particularly, on Division Bench judgement dated

28th March, 2018 of Punjab & Haryana High Court in

CWP 29437 of 2017 (Carpo Power Limited vs. State of

Haryana & Ors.). Special Leave to Appeal petition from

said judgment was preferred before Supreme Court but

dismissed by order dated 13th August, 2018. The other

judgment, of many relied on is Printers (Mysore) Ltd. vs.

Assistant Commercial Tax Officer reported in

(1994)2SCC 434.

Mr. Majumder, learned senior advocate, Additional

Advocate General appears on behalf of State and draws

attention to letter dated 22 nd June, 2018 written by

petitioner, in which, inter alia, following was said.

"At this juncture, we would like to mention that HSD is

mainly used in our steel plant in diesel operated

locomotives for internal movement of raw material,

semi/finished goods and in Heavy Earth Moving

equipment."

He submits, according to petitioner, it is using HSD

'mainly' in its steel plant. As such, there is a component of

the quantity that was and is not being used for the

purpose of manufacturing. This needs verification and the

verified amount consumed for purpose of manufacture will

be covered by issuance of Form 'C'. Mr. Kundalia, learned

advocate appears on behalf of Union of India and adopts

submission made on behalf of State.

Petitioner will declare before the authority the

amount out of consumed quantity of HSD, against which

Form 'C' has been claimed, used for purpose of

manufacture. The authority may accept the declaration or

in event, on reason to believe otherwise, verify. Form 'C'

should thereafter be issued for declared quantity or the

verified quantity. This should happen within six weeks

from date of declaration in respect of the quantity of HSD,

against which Form 'C' was denied by impugned letter.

Mr. Tangri, learned advocate appears for petitioner and

submits, there be a direction for quantities consumed

thereafter. Petitioner is on notice of what it has to do to

obtain Form 'C' in respect thereof.

The writ petition is disposed of.

(Arindam Sinha, J.)