M/S Acc Ltd vs State Of Chhattisgarh
2021 Latest Caselaw 2377 Chatt

                      HIGH COURT OF CHHATTISGARH, BILASPUR

                                            Order Sheet

                                     WPT No. 173 of 2021

                      M/s ACC Ltd. Versus State Of Chhattisgarh & ors.



16/09/2021          Shri Gary Mukhopadhyay, Counsel for the petitioner.

                    Shri Ashish Tiwari, GA for the State.

                    Heard on application for grant of interim relief.

                    Learned counsel for the petitioner would submit that the issue is covered

             by the judgement rendered by this court in WPT No.83/2018 on 18/05/2018

             (Annexure P-2). He would submit that the petitioner/company are not being

             issued the C- Form otherwise which has been held by this court that they are

             entitled for issuance of C-Form. It is contended the petitioner is using the high

             speed diesel for manufacture of cement and are procuring the same of Indian Oil.

             The levy of GST on high speed diesel and issuance of C-Form has been the

             subject matter of the writ petition when the authoritative judgment holds the field

             that petitioner are entitled non-issuance of C-Form would be against the order of

             High Court. He would submit that under the circumstances the State may be

             directed to issue the C-Form and any consequence thereof if it is found the C-

             Form is wrongly been obtained by the petitioner they would be exposed for the

             penalty and levy of the GST at the higher rate which can always be charged.


                    Learned State counsel would submit that the reply is under preparation.
        Perused the judgement passed by the coordinate bench of this court. For

the sake of brevity para 39 of the judgement is reproduced hereunder:-


       "39. On the basis of aforesaid analysis, it is held that the petitioner is a
registered dealer under the provisions of the CST Act, 1956 read with the Rules
of 1957 and his registration certificate under the CST Act, 1956 read with the
Rules of 1957 continues to be valid for the purpose of inter-State sale and
purchase of high speed diesel despite the petitioner having been migrated to the
GST regime with effect from 1-7-2017, as the definition of goods as defined in
Section 2(d) of the CST Act, 1956 has been amended prior to coming into force
of the CGST Act, 2017 from 1-7-2017 which includes high speed diesel. Further,
under Section 9(2) of the CGST Act, 2017 the GST Council has not made any
recommendation for bringing high speed diesel within the ambit of the CGST Act,
2017 and therefore the Central Government has not notified high speed diesel to
be within the ambit and sweep of the CGST Act, 2017. Thus, the petitioner's
registration certificate under the CST Act, 1956 is still valid for the goods defined
in Section 2(d) of the CST Act, 1956, including high speed diesel, and the
petitioner is entitled for issuance of C-Form for inter-State purchase / sale of high
speed diesel against the said C-Form. Accordingly, the respondents shall be

liable and are directed to issue C-Form to the petitioner in respect of high speed diesel to be purchased by the petitioner and used in the course of manufacture of cement and for that, it is further directed to rectify and remove the error on their official website and entertain the petitioner's application submitted on-line on the official website seeking issuance of C Form to the petitioner for said goods."

Taking into such fact and the fact that in case the C-Form is subsequently

found to be wrongly issued or obtained then it is always within the power of the

State to charge a higher rate of GST payable alongwith the penalty for which the petitioner shall always be exposed. Withholding the C-Form in any way will not

serve any bodies purpose as the petition will take some time for final hearing.

Under the circumstances, it is directed that the State shall issue C-Form to

the petitioner which would be subject to the final adjudication of the entitlement of

the petitioner's C-Form and if it is found that the petitioner were not entitled to get

the C-Form, then in such case they shall be liable for the consequences of

penalty and higher rate of GST and other measures which are provided under the

law.

List the case after six weeks along with WPT No. 42 of 2021.

Sd/-

(Goutam Bhaduri) JUDGE

ashu