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2019 (1) TMI 165 - HC - VAT and Sales TaxBenefit of concessional rate of tax under CST Act, 1956 - Inter-state procurement of goods for use in mining - interpretation of word 'mining' - Whether the activity of quarrying carried on by the petitioner/assessee can be termed “mining” as referred to in Section 8(2) (b) of the Central Sales Tax Act, 1956? - Held that:- The provisions of the Mining Act, 1952 actually aids the petitioner. The intention is to provide the concessional rate in inter-state trade where the specific goods are purchased for re-sale or for use inter alia in the manufacture or processing of goods, in mining, telecommunications and generation or distribution of electricity or any other form of power. The essential object is to lessen the tax burden when there is a further sale by itself or after manufacture or processing. In mining on the excavation of minerals, they are taxable at the next instance of sale. We have no doubt that with respect to the goods being intended for re-sale, one has to look at the definition under Section 2(d). However, when the use is in the manufacturing or processing of goods for sale or in the telecommunication network or in mining or in the generation or distribution of electricity or any other form of power; there could be no restrictive meaning applied to the term "goods for sale". The "goods for sale" in the second limb of the provision has to be taken as referring to a common category, which is exigible to tax under one or other enactment within a State in the Country. Concessional rate of duty - inter-State purchases - migration to GST Regime - whether after the introduction of the goods and services tax enactments and the restrictive meaning of goods adopted under the CST Act, the petitioner/assessee can be allowed to have continued; HSD, in his certificate of registration under the CST Act, enabling him to claim concessional rate? - Held that:- The provisions are in pari materia in so far as the legislation of the State of Kerala and Haryana. The reference herein above is to the Haryana Goods & Services Tax Act, the provisions of which are similar to the KG&ST Act; both having adopted mutatis mutandis the provisions of the CG&ST Act. The contention there, of the State, was also that Section 8 of the CST Act would be applicable only if the subsequent sale, by way of resale or of manufactured goods, are the goods seen under the definition clause 2(d) of the CST Act, and are taxable under the state VAT Act. In the State of Kerala petroleum products always remained under the Kerala General Sales Tax Act and the contention is identical, only with the difference that here the State asserts applicability of CST Act only if the subsequent sale of goods, even after manufacture is under the KGST Act ie: of the goods under the KGST Act. The action of the lower authorities and the impugned orders to be illegal and arbitrary - It is directed that the Certificate of Registration under the CST Act to be restored but amended, including 'HSD' substituting the words 'fuel elements-all fuels' The assessee would be entitled to concessional rate for the inter-state purchases made by it for use in its quarrying activity, which has abeen found by us to be mining as included under Section 8(3)(b) of the CST Act. Revision allowed.
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