Allowed

Chettinad Cement v. The State of Tamil Nadu

Madras HC9 Aug 2019WP/23509/2019

Case brief

AI extract

What is this about?

The High Court of Madras allowed the writ petition filed by a cement company directing the Revenue Department to permit the download of C declaration forms. The petition concerned the inability to access forms for interstate diesel purchases post-GST implementation, referencing prior orders mandating departmental compliance with concessionary rates.

What did the court decide?

Direct the respondents to permit the petitioner to download C declaration forms for interstate purchases of High Speed Diesel Oil within 5 working days.

Chettinad Cement Vs The State of Tamil Nadu — Writ and Judicial Review | Madras HC (2019)

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED : 09.08.2019

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CORAM

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THE HONOURABLE MR. JUSTICE M.SUNDAR

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W.P.No.23509 of 2019

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Chettinad Cement Corporation Pvt. Ltd., Represented by its Company Secretary Mr.S.Hariharan Rani Seethai Hall Building 603, Anna Salai, Chennai – 600 006 .. Petitioner -Vs1.The State of Tamil Nadu Represented by the Secretary Commercial Taxes Department Fort St. George Chennai – 600 009 2.The Principal Commissioner & Commissioner of Commercial Taxes Ezhilagam, Chepauk Chennai – 600 005. 3.The Joint Commissioner Computer Cell PAPJM Building Greams Road Chennai – 600 006 4.Asst. Commissioner (ST) Karur (East), Karur .. Respondents

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Prayer: Writ Petition filed under Article 226 of the Constitution of India praying for issuance of a Writ of Mandamus to direct the respondents herein to permit the petitioners to download C declaration forms for inter state purchases of high speed diesel oil under the CST Act, 1956 read with the Central Sales Tax (Registration and Turnover) Rules, 1957 for the purchase of High Speed Diesel oil from the suppliers in the other State.

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For Petitioner : Mr.K.Narayanan for Mr.N.Inbarajan

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https://hcservices.ecourts.gov.in/hcservices/

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For Respondents : Mr.Mohammed Shaffiq Special Government Pleader

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ORDER

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Mr.K.Narayanan,learned counsel representing Mr.N.Inbarajan, learned counsel on record for sole writ petitioner is before this Court. Mr.Mohammed Shaffiq, learned Special Government Pleader accepts notice on behalf of all the four respondents.

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With consent of both learned counsel i.e., counsel for writ petitioner as well as Revenue counsel, the main writ petition itself is taken up for disposal, though this writ petition is listed before this Court today under the caption 'FOR ADMISSION' in the motion list.

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Both the learned counsel submitted, without any disputation or disagreement, that the entire matter turns on a very narrow compass and therefore, main writ petition itself can be disposed of.

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The central theme of this writ petition is purchase of High Speed Diesel Oil for use in the mining and for captive power plant start-up for manufacture of cement at their cement factory.

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In this writ petition, the petitioner was making interstate purchases of High Speed Diesel Oil on concessional rate of tax at 2% by way of 'C' forms. After introduction of 'Goods and Services Tax' ('GST' for brevity), petitioner continued to purchase High Speed Diesel Oil, but, however, they could not download the 'C' forms. When the petitioner enquired with the Revenue Department, the petitioner was informed that after introduction of GST regime on and with effect from 01.07.2017, the petitioner was not entitled to make purchase of High Speed Diesel Oil from other States on concessional rate of tax i.e., at 2% and therefore, the Department's site has been blocked to deny access to the petitioner and other similarly placed persons from downloading 'C' forms. It may not be necessary to advert to those facts any further, as there is virtually no dispute on the factual aspects of the matter as well as the obtaining legal position as of today.

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The undisputed obtaining legal position as of today is that, the above said issue came up for consideration before another Hon'ble Judge of this Court in a batch of writ petitions i.e., W.P.Nos.19458 to 19460 of 2018 etc., being a batch of 71 writ petitions and a common order came to be passed by a Hon'ble Single Judge on 26.10.2018. In the batch, the lead matter is

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https://hcservices.ecourts.gov.in/hcservices/

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'The Ramco Cements Ltd.,' and therefore, this common order dated 26.10.2018 shall be referred to as 'Ramco Cements matter'.

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In the Ramco Cements matter, this Court allowed the writ petitions filed by the assessees and directed the Revenue to permit the petitioners assessees to download 'C' forms. It is not in dispute (as submitted by the learned counsel for Revenue) that though an intra Court appeal has been preferred against Ramco Cements matter with a delay of three days, the same remains unnumbered as of today. In other words, Ramco Cements authored by a Hon'ble Judge of this Court is holding the field as of today.

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Post Ramco Cements matter, a similar situation came up before another Hon'ble Single Judge vide W.P.No.12520 of 2019 and the same came to be disposed of on 26.04.2019. In the said order, learned Single Judge held that till such time the order of Ramco Cements is either stayed or reversed it is incumbent upon all Assessing Authorities within the State of Tamil Nadu to apply the rationale and the principle laid down in Ramco Cements with regard to pending assessments. This position is not disputed.

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In other words, there is no dispute or disagreement that the instant writ petition falls clearly within the four corners of Ramco Cements matter as well as the aforesaid order of another Hon'ble Single Judge made in W.P.No.12520 of 2019 (order dated 26.04.2019) in 'Southern Cotspinners Coimbatore Private Limited'. The most relevant paragraphs are paragraphs 5 and 6 of Southern Cotspinners Coimbatore Private Limited case and the same read as follows:

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'5. In such circumstances, till such time the order of this court in the case of M/s. Ramco Cements Ltd (supra) is either stayed or reversed it is incumbent upon all Assessing Authorities within the State of Tamil Nadu to apply the rationale of the decision to all pending assessments. The Petitioner in this Writ Petition has stated on affidavit that it is unable to download the 'C' forms from the websites as the same stand blocked from use. Upon enquiry with the Assessing Authorities, they have been informed that the benefit of the decision in M/s Ramco Cements Ltd can be extended only to those dealers that are party to the decision. This stand is unacceptable in so far as the decision of this Court as well as other High Courts, one of which has been confirmed by the Supreme Court, are decisions in rem, applicable to all dealers that seek benefit thereunder, of course, in accordance with law.

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In the aforesaid circumstances and in the

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https://hcservices.ecourts.gov.in/hcservices/

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light of the order passed above, this Writ Petition is allowed. Consequently, necessary action to be taken by the department, forthwith. No costs. Connected Miscellaneous Petition is closed.'

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In the light of the narrative supra and in the light of the trajectory, which this matter has taken at the admission stage, it follows as a natural sequitur that instant writ petition stands allowed. Consequently, necessary action has to be taken by the Revenue/Department/Respondents forthwith which in any case shall not be more than 5 working days from the date of receipt of a copy of this order.

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This writ petition is allowed. No costs.
gpa
Sd/-
Assistant Registrar
//True Copy//
Sub Assistant Registrar
To
1.The Secretary to Government,
State of Tamil Nadu
Commercial Taxes Department
Fort St. George, Chennai – 600 001.
2.The Principal Commissioner & Commissioner of
Commercial Taxes
Ezhilagam, Chepauk
Chennai – 600 005.
3.The Joint Commissioner
Computer Cell, PAPJM Building
Greams Road, Chennai – 600 006
4. The Asst. Commissioner (ST)
Karur (East),
+1cc to Mr.N.INBARAJAN, Advocate, SR.No.68331
+1cc to the Spl. Govt.Pleader, Vide Sr.No.69087
W.P.No.23509 of 2019
Kak(18/09/2019)

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https://hcservices.ecourts.gov.in/hcservices/

Chettinad Cement v. The State of Tamil Nadu

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Chettinad Cement v. The State of Tamil Nadu

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