TMI Blog2021 (12) TMI 129X X X X Extracts X X X X X X X X Extracts X X X X ..... nce. If a dealer is dealing in goods falling within the ambit of the GST Act as well as the CST Act, it is always permissible for him to hold separate registrations under both the Acts in respect of such goods. Therefore, a dealer who is registered under the GST Act can also be registered under the CST Act in respect of commodities which fall within the ambit of the expression goods as defined under section 2(d) thereof for getting the benefit of reduced rate of tax under section 8 of the CST Act. Petition disposed off. - R/SPECIAL CIVIL APPLICATION NO. 15774 of 2020, 2139 of 2021, 3536 of 2021, 13100 of 2020 - - - Dated:- 28-10-2021 - HONOURABLE MS. JUSTICE SONIA GOKANI AND HONOURABLE MR. JUSTICE HEMANT M. PRACHCHHAK UCHIT N SHETH FOR THE PETITIONER ORDER PER : HONOURABLE MS. JUSTICE SONIA GOKANI 1. By way of these petitions, the petitioners are seeking following reliefs: 26 A. This Hon'ble Court may be pleased to issue a writ of mandamus or writ in the nature of mandamus or any other appropriate writ or order directing the Respondents to forthwith activate registration certificate of the Petitioners on the online portal under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd LDO as commodity in the CST for mining activity. Guidance is sought for from the Deputy Commissioner of Commercial Tax as to whether HSD and LDO can be incorporated in CST commodity. He has further stated that after guidance is received, action will be taken for amendment and that the petitioner s online applications has been approved through oversight, which is being kept in abeyance. After guidance is received, HSD and LDO shall be incorporated in CST Commodity. 9. In the aforesaid backdrop three questions arise for consideration: (i) Whether the authority under section 7 of the CST Act has any power to review or keep in abeyance an order passed by it on the ground of seeking guidance from the superior authority? (ii) Whether upon the coming into force of the Taxation Laws (Amendment) Act, 2017 whereby the definition of goods in the CST Act came to be amended, CST Registrations of dealers other than those dealing in the specified goods would automatically become inactive? and (iii) Whether a dealer who is registered under the Goods and Services Tax Act cannot also be registered under the CST Act, when the CST Act requires a person who deals in or claims ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of sub-section (3-C) or subsection (3-E) or has failed to pay any tax or penalty payable under this Act or in the case of a dealer registered under subsection (2) has ceased to be liable to pay tax under the sales tax law of the appropriate State or for any other sufficient reason. 10.1 Thus, sub-section (1) of section 7 of the Act requires a dealer seeking registration under the CST Act to make an application to such authority in the appropriate State as the Central Government may, by general or special order, specify. Sub-section (4) thereof enables the authority which has granted such registration to amend the certificate of registration. 10.2 Rule 3 of the Central Sales Tax (Registration and Turnover) Rules, 1957 (hereinafter referred to as the rules ) provides for a dealer to make an application under section 7 of the CST Act to the notified authority. It appears that the second respondent State Tax Officer is the notified authority specified by the Central Government to decide applications for registration under section 7 of the CST Act. Therefore, it is for that authority to decide whether or not a dealer is required to be registered under the CST Act or whethe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n abeyance, the stand of the second respondent in the impugned letters dated 27.2.2019 informing the petitioners that their on-line applications had been approved through oversight and that High Speed Diesel would be included in CST commodity after obtaining guidance of the higher authority cannot be countenanced even for a moment. The impugned letters, therefore, cannot be sustained. 11. Adverting to the second question as to whether upon the coming into force of the Taxation Laws (Amendment) Act, 2017 whereby the definition of goods in the CST Act came to be amended, CST registrations of dealers other than those dealing in the specified goods would automatically become inactive; subsection (4)(b) and sub-section (5) of section 7 of the CST Act provide for the manner in which a registration certificate granted under that Act can be cancelled. There is no provision in the CST Act which provides that if a dealer stops dealing in a particular commodity or if the commodity in which he is dealing ceases to be goods within the meaning of such expression as envisaged under section 2(d) of that Act, the registration certificate would automatically stand cancelled or would become ina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overed under those Acts. Since for the present, goods other than the goods mentioned in section 2(d) of the CST Act as amended by section 13 of the Taxation Laws (Amendment) Act, 2017 are not covered by the GST Act, the CST Act has been amended to restrict the definition of goods to those commodities which for the present are not covered by the GST Act. Evidently therefore, dealers dealing in or claiming usage of commodities falling within the ambit of the definition of goods as per the amended section 2(d) of CST Act were required to be registered under the CST Act to get the benefit of reduced rate of tax under section 8 thereof. Such dealers may also be dealing in commodities other than those falling within the ambit of the amended section 2(d) of the CST Act and would, therefore, be required to be registered under the respective GST Act also. Therefore, the contention that as the petitioners are dealers who are registered under the GST Act, they cannot be registered under the CST Act, does not merit acceptance. If a dealer is dealing in goods falling within the ambit of the GST Act as well as the CST Act, it is always permissible for him to hold separate registrations under b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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