TMI Blog2018 (11) TMI 286X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sales Tax at 2%. 3. The natural gas purchased/ obtained by the Petitioner from the dealers in State of Gujarat is utilized for manufacture of chemicals and also for the generation of electricity. It is the case of the Petitioner that in terms of the amended definition of goods in Section 2(d) of the Act, w.e.f. 1st July, 2017 read with Section 8 of the Act, it is entitled to the benefit of lower tax at 2% under the Act on the entire purchase of natural gas. However, for the purposes of interim relief, the claim is restricted to the extent the purchased natural gas is used for generation of electricity. Therefore, the Petitioner have repeatedly sought the issue of 'C' Form Certificate from the Respondent. This is so, as to forwar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncessional rate of tax. 6. Prima facie, we are of the view that, where it 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. No bar in the Act or the Rules framed thereunder, has been shown to us, which would deprive the party from claiming the benefit of 'C' Form even to the extent of permitted use of the input under the CST Act. In case, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Officer 61 STC 335, Dawar Brothers v/s. State of Madhya Pradesh (M.P.) 44 STC 286, T.V.P. Nambair v/s. State of Madras (Writ Petition Nos. 1379 and 1380 of 1967) , all relied upon in the Colorgraph (supra). As observed in the above cases, in case, it is found that 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. 8. The grant of interim relief will not prohibit the Respondents from making enquiries to the extent of use of the natural gas for the sta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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