Madras High Court
M/S.Kartya Constructions ... vs The Assistant Commissioner (St) on 5 January, 2021
W.P.(MD)No.19800 of 2020
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 05.01.2021
CORAM:
THE HONOURABLE MR.JUSTICE G.R.SWAMINATHAN
W.P.(MD)No.19800 of 2020
and
W.M.P.(MD)No.16493 of 2020
M/s.Kartya Constructions Pvt.Ltd.,
Represented by its Director T.Sathiyamoorthy,
13A, Mariyappa Tower,
Yamuna Street, Housing Board Sector HIG,
Ellis Nagar, Madurai. ... Petitioner
-Vs-
1.The Assistant Commissioner (ST),
Chokkikulam Assessment Circle,
Commercial Taxes Building,
Madurai-20.
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 the 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 26.10.2018 passed by this Court in the case of
M/s.Ramco Cements Ltd., & others in W.A.Nos.3403, 3413, 3414 and
2812 of 2019 for running the machinery for mining.
1/6
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W.P.(MD)No.19800 of 2020
For Petitioner : Mr.S.Karunakar.
For Respondents : Mr.S.Dhayalan,
Government Advocate.
ORDER
Heard the learned counsel on either side. With the consent of
learned counsel on either side, the Writ Petition is taken up for final
disposal at the stage of admission itself.
2.The prayer made by the petitioner is opposed by the learned
Government Advocate 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
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W.P.(MD)No.19800 of 2020
Commissioner (CS) (Systems). The Hon'ble Division Bench held as
follows:
“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
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W.P.(MD)No.19800 of 2020
Circular letter of the Commissioner dated 31.05.2018 stands quashed
and set aside along with the consequential notices and proceedings
initiated against all the assessees throughout the State of Tamil Nadu.”
4.Since as on date, the order made in the writ appeal is final, the
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.
05.01.2021
Index : Yes/No
Internet : Yes/No
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.
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W.P.(MD)No.19800 of 2020
To
1.The Assistant Commissioner (ST),
Chokkikulam Assessment Circle,
Commercial Taxes Building,
Madurai-20.
2.The Commissioner of State Taxes,
Ezhilagam, Chepauk, Chennai.
http://www.judis.nic.in
W.P.(MD)No.19800 of 2020
G.R.SWAMINATHAN, J.
rmi
W.P.(MD)No.19800 of 2020
05.01.2021
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