STATE OF RAJASTHAN Vs. ASI INDUSTRIES LIMITED

JUDGEMENT

(1.) The State-appellant is aggrieved from the decision of the learned Single Judge. It is contended that in the absence of Central Sales Tax (CST) Registration the assessee respondent cannot claim a direction to C Forms be issued to it. By the impugned order, the learned Single Judge has directed that C Forms sought not to be issued.

(2.) The writ petitioner is engaged in mining of minerals out of State of Rajasthan as a input for its activity however, it purchases High Speed Diesel (HSD). That product continuous to be subjected to a State levy. It was earlier subjected to a levy by the Rajasthan Value Added Tax. After the advent of the Goods and Services Tax and the enactment of the Rajasthan Goods and Services Tax Act, it is now taxable under the RGST. The peculiarity of this case is that all goods and services except specified six items are subjected to CGST as is evident from the definition of "goods" under Sec. 2(52) read with Sec. 9(2) of the CGST Act. The effect of this provision is that till the GST Council so decides, levy on certain products such as HSD, would be continued by the State and collected by it in accordance with its legal mechanism. That pre-existing regime of taxation of diesel (as adverted to earlier) was subjected to VAT Levy. Issue of Form C has apparently been subject matter of the proceedings in several other courts. On the enactment of the GST Act, business had to be switched over and migrated to GST and also had to obtain registration as GST Dealers-as the new levy covers almost all products on services. Consequently, the assessee/writ petitioner also did so. Immediately thereafter when it stopped obtaining C Forms on the purchases made by it as inputs. The concerned State Authorities refused that benefit containing that they have CST Registrations had ceased with the registration under the GST regime.

(3.) Almost identical situation had arisen before the Punjab and Haryana High Court in Carpo Power Limited v. State of Haryana and Ors., 2018 (2) GSTL 248, where much like HSD, issue of C Forms were refused in the case of natural gas procured from Gujrat for use in Haryana. The Court, ultimately referring to the provisions of GST Act, CST Act and the Haryana Goods and Services Tax Act, held as follows:-