2.According to the petitioner, they are lessee of lime stone quarry and manufacturer of cement. For their entire activities, they consume a large quantity of High Speed Diesel Oil, which they purchase from the suppliers of within as well as outside the State. To avail the concessional rate of tax at 2% on inter-state purchases, they are required to furnish “C” forms. While the things stood thus, the second respondent issued a circular dated 31.05.2018, to all the Joint Commissioners (Territorial), giving instructions that all the registered dealers, who have migrated to GST, are not misusing the 'C' form declaration for the purpose of effecting purchase of petroleum products and using it for manufacture of other goods that are administered under GST Act, 2017. Further, direction was issued to take necessary action against those dealers. Following the same, the third respondent issued a notice dated 07.09.2018 proposing to levy penalty under Section 10A of the Act, stating that the petitioner purchased High Speed Diesel Oil from the months of July 2017 to September 2017 to the total value of Rs.32,80,853/- by issuing 'C' form for the same. Subsequently, the third respondent issued a certificate on 21.11.2019 stating that the petitioner is entitled to purchase HSD oil from 20.11.2019 for use in the mining/ generation of electricity and permitted to download 'C' form for the purchases made during the period in question. However, there is no modification with regard to levy of penalty. Hence, the petitioner has preferred this writ petition to challenge the said circular dated 31.05.2018 issued by the first respondent and consequently direct the respondents 2 to 4 to issue 'C' declaration forms under the CST Act, 1956 for their purchases of HSD oil from the suppliers of other States.
