Madras High Court
M/S.Vedha Spinning Mills Pvt Ltd vs The State Tax Officer on 1 April, 2021
W.P.(MD)No.2723 of 2021
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 01.04.2021
CORAM:
THE HONOURABLE MR.JUSTICE G.R.SWAMINATHAN
W.P.(MD)No.2723 of 2021
and
W.M.P.(MD)No.2245 of 2021
M/s.Vedha Spinning Mills Pvt Ltd.,
Represented by its Director C.Kandaswamy,
2612/2, Vedasandur Road,
Thadikombu, Dindigul. ... Petitioner
-Vs-
1.The State Tax Officer,
Vedasandur Assessment Circle,
Commercial Taxes Building,
Dindigul.
2.The Commissioner of State Taxes,
Ezhilagam,
Chepauk, Chennai. ... Respondents
Prayer: Petition filed under Article 226 of the Constitution of India to
issue a Writ of Mandamus, to direct the first respondent to issue C forms
under the Central Sales Tax Act, 1956 read with Central Sales Tax
(Registration and Turnover) Rules, 1957 to the petitioners for the
purchase of High Speed Diesel from the suppliers in other States in view
of the Judgment dated 05.01.2021 passed by the Hon'ble Madras High
Court Madurai Bench in the case of M/s.Kartya Constructions Private
Limited in W.P.(MD)No.19800 of 2020 for running the machinery.
1/6
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W.P.(MD)No.2723 of 2021
For Petitioner : Mr.N.Sudalaimuthu
for Mr.S.Karunakar
For Respondents : Mrs.J.Padmavathi Devi
Special Government Pleader
ORDER
Heard the learned counsel on either side.
2.The prayer made by the petitioner is opposed by the learned
Special Government Pleader by placing reliance on the circular dated
05.09.2019 issued by the Additional Chief Secretary/Commissioner of
Commerical Tax, Chennai.
3.I am of the view that reliance on the said circular is misplaced in
view of the subsequent judicial pronouncement. As late as October 2020,
a learned Judge of this Court considered the identical prayer in W.P.No.
14510 of 2020. It cannot be in dispute that the case on hand is covered
by the decision reported in 2020 (3) TMI 450 (The Commissioner of
Commercial Taxes, Chennai, The Additional Commissioner (CT) Vs.
The Ramco Cements Ltd., and the State Tax Officer, The Joint
Commissioner (CS) (Systems). The Hon'ble Division Bench held as
follows:
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W.P.(MD)No.2723 of 2021
“39.Therefore, if a dealer has a right to sell as well the restricted
six items under CST Act, one fails to understand as to how their right to
purchase those goods at present time under the existing Registration
Certificates can be taken away merely because they are not selling those
good. If sale of the goods was the only criteria of registration under the
CST Act, the consequent amendments would not have allowed
concessional rate of tax for purchase of those six commodities for user
in activities like Mining or Telecommunication Networks, where no
such resale or use in manufacturing is involved. Therefore, such a right
is equally available to other industries like Cement Industries and the
same cannot be denied to them. That would result in an invidious
classification in violation of Article 14 of the Constitution of India,
which is neither envisaged nor is called for. Therefore, the contentions
raised on behalf of the Revenue are not sustainable at all.
40.Consequently, we are of the opinion that the Writ Appeals
filed by the Revenue have no merits and deserve to be dismissed and
respectfully agreeing with the view expressed by other High Courts and
confirming the view of the learned Single Judge in the impugned
Judgment in Appeal before us we dismiss the present Writ Appeals filed
by the State.
41.The Appellant State and the Revenue Authorities are directed
not to restrict the use of 'C' Forms for the inter-state purchases of six
commodities by the respondent/assessees and other registered dealers at
concessional rate of tax and they are further directed to permit online
downloading of such declaration in 'C' Forms to such dealers. The
Circular letter of the Commissioner dated 31.05.2018 stands quashed and
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W.P.(MD)No.2723 of 2021
set aside along with the consequential notices and proceedings initiated
against all the assessees throughout the State of Tamil Nadu.”
4.Questioning the order passed by the Hon'ble Division Bench, the
Department filed Special Leave to Appeal (C) Nos.15785-15788 of 2020
before the Hon'ble Supreme Court. Vide order dated 24.03.2020, the
Special Leave Appeals were dismissed. The Hon'ble Supreme Court
ordered as follows:-
“Heard the learned counsel for the parties at length.
We are in agreement with the view taken by the Punjab and
Haryana High Court in Carpo Power Limited Vs. State of Haryana &
Ors., which has already been upheld by this Court by dismissing
Special Leave Petition (C) No.20572 of 2018 vide order dated 13 th
August 2018.
The High Court of Jharkhand at Ranchi has also dealt with the
same issue in 'Tata Steel Limited Vs. State of Jharkhand' reported in
2019 SCC online Jharkhand 1255. This Judgment, in our opinion, is
exhaustive and answers all the points urged before us by the
petitioner in the instant special leave petitions.
It is brought to our notice that nine High Courts have taken the
same view. Even the decision of the High Court of Rajasthan has
been affirmed by this Court by dismissal of Special Leave Petition
(C) No.27529 of 2019 and connected cases vide order dated 3rd
February 2020.
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W.P.(MD)No.2723 of 2021
Considering the consistent view of nine High Courts, including
dismissal of special leave petition by different Bench of this Court,
and being satisfied about the exposition on the matters in issue by the
High Court of Madras vide impugned Judgment and order being a
possible view, we decline to interfere in these special leave petitions.
Notably, after the decision of Punjab and Haryana High Court
even the Union of India has chosen to act upon the said decision by
issuing Office Memorandum dated 1st November 2018 and directing
all the States/Union Territories to follow the view taken by the
Punjab and Haryana High Court.
Hence, we see no reason to reopen the entire matter. The
Special Leave Petitions are accordingly dismissed.”
5.Therefore, this writ petition has to be necessarily allowed. It is
accordingly allowed. The petitioner is entitled to the inclusion of 'High
Speed Diesel Oil' as a commodity in the registration certificate. Let this
exercise be carried out within a period of four (4) weeks from the date of
uploading of this order. The request of the petitioner for issuance of 'C'
Forms is allowed as a consequence thereof. No costs. Consequently,
connected miscellaneous petition is closed.
01.04.2021
Index : Yes/No
Internet : Yes/No
rmi
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W.P.(MD)No.2723 of 2021
G.R.SWAMINATHAN, J.
rmi
Note : In view of the present lock down owing to
COVID-19 pandemic, a web copy of the order may be
utilized for official purposes, but, ensuring that the
copy of the order that is presented is the correct copy,
shall be the responsibility of the advocate/litigant
concerned.
To
1.The Assistant Commissioner (ST),
Dindigul Rural Assessment Circle,
Commercial Taxes Building,
Dindigul.
2.The Commissioner of State Taxes,
Ezhilagam,
Chepauk, Chennai.
W.P.(MD)No.2723 of 2021
01.04.2021
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