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2018 (11) TMI 286 - HC - VAT and Sales TaxNon-issuance of 'C' Form under the Central Sales Tax Act, 1956 - natural gas purchased by the Petitioner from the supplier/ dealer in the State of Gujarat - concessional rate of Central Sales Tax at 2% - Held that:- Where it is possible to bifurcate and/or measure the use of natural gas in generation of power, the benefit of 'C' Form to the extent of its user in generation of electricity, is to be granted. This on facts has been found to be possible by the report submitted by Mr. Vitthal S. Marwade, Deputy Commissioner of Sales Tax. In fact, he has recommended/ proposed grant of 'C' Form to the extent natural gas is used in generation of electricity - In case, a part of the inputs are used in items not entitled to its benefit respect of applications for 'C' Form already made, Respondent will file an affidavit of its Managing Director of the extent of user of natural gas in generation of power with the Respondents in support of its pending applications. Whether at the stage of application for 'C' Form made by Registered dealer, is adjudication called for? - Held that:- Once, the Petitioner is registered as a dealer under the Act, then that registration permits/ allows the dealer to purchase the goods mentioned therein from outside the State and seek concessional rate of tax by applying for issue of 'C' Form to the Respondent Nos.1 and 2. Prima facie, Respondent Nos. 1 and 2 are obliged to grant/issue the same - The natural gas obtained/ purchased from the dealer in the State of Gujarat are not used for the intended purposes namely – generation of power to the extent declared by the Petitioner, then it would be open to the Respondent to invoke the provisions of the Act and the Rules framed thereunder for the purposes of imposing penalties. The grant of interim relief will not prohibit the Respondents from making enquiries to the extent of use of the natural gas for the stated purposes i.e. generation of electricity. Thereafter, if required, Respondent are at liberty to move this Court for variation of this order - till the final disposal of this Petition, there shall be adinterim relief in terms of prayer clause.
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