2020 (9) TMI 46 - HC - VAT and Sales Tax

Issuance of C forms - purchase of High Speed Diesel from the suppliers in other States - Central Sales Tax Act 1956 r/w. The Central Sales Tax (Registration and Turnover) Rules 1957 - HELD THAT - The Hon ble Division Bench in the case of THE COMMISSIONER OF COMMERCIAL TAXES CHEPAUK CHENNAI THE ADDITIONAL COMMISSIONER (CT) VERSUS THE RAMCO CEMENTS LTD. AND THE STATE TAX OFFICER THE JOINT COMMISSIONER (CS) (SYSTEMS) VERSUS SUNDARAM FASTENERS LIMITED 2020 (3) TMI 450 - MADRAS HIGH COURT had clearly directed the State and the Revenue Authorities not to restrict the use of C Forms for their inter-State purchases of six commodities by the 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 was quashed and the Hon ble Division Bench also set aside the consequential notices and proceedings initiated against all the assessees throughout the State of Tamil Nadu. Petition allowed.

Summary

Issues:
1. Petition for issuance of "C" forms under the Central Sales Tax Act, 1956 for the purchase of High Speed Diesel from suppliers in other States.

Analysis:
The petitioner sought the issuance of "C" forms under the Central Sales Tax Act, 1956 for purchasing High Speed Diesel from out-of-state suppliers. The petitioner relied on a previous order dated 26.10.2018, which was challenged before the Hon'ble Division Bench. The Division Bench, in an order dated 09.03.2020, dismissed the writ appeals and directed the State and Revenue Authorities not to restrict the use of "C" Forms for inter-State purchases of specific commodities at concessional tax rates. The Division Bench also mandated online downloading of such declarations in "C" Forms and quashed a circular letter dated 31.05.2018, along with setting aside consequential notices and proceedings against assessees in Tamil Nadu.

The court noted that the petitioner's prayer aligned with the Division Bench's order of 09.03.2020. Consequently, the court allowed the writ petition, emphasizing that the relief sought was covered by the Division Bench's ruling. The judgment did not impose any costs on the parties, and the connected miscellaneous petition was closed as a result of the decision.