Facts of the Case

M/s Orient Refractories Limited had been purchasing High Speed Diesel against "C" Forms under the Central Sales Tax Act, 1956 for its manufacturing activities during the pre-GST regime. Following the GST rollout, issuance of "C" Forms was denied on the ground that an amendment to Section 2(d) of the CST Act (defining "goods") had narrowed the category of goods for which such forms could be issued. The petitioner sought a direction compelling issuance of "C" Forms for High Speed Diesel procured for its manufacturing operations.

Issues Involved

  1. Whether "C" Forms could still be issued for High Speed Diesel used in manufacturing and processing of goods in inter-state trade, after the post-GST amendment to the CST Act's definition of "goods."

Petitioner's Arguments

  • The issue was squarely covered by the Rajasthan High Court's own earlier ruling in Hindustan Zinc Limited v. State of Rajasthan (S.B. Civil Writ Petition No.5506/2018), decided on 18.05.2018, and connected petitions, entitling the petitioner to the same relief.

Respondent's Arguments

  • No independent opposition is recorded beyond reliance on the amended definition of "goods" under the CST Act, which the Court did not find distinguishable from the position already settled in Hindustan Zinc.

Court Order / Findings

  • Recording that the issue was "no more res integra" and squarely covered by Hindustan Zinc Limited, the Division Bench allowed the writ petition in the same terms.
  • It held that the respondents were liable to issue "C" Forms for High Speed Diesel procured for manufacturing and processing of goods through inter-state trade.
  • Any amount the petitioner had to pay due to the wrongful refusal was directed to be refunded or adjusted, on a claim to be processed within twelve weeks of the petitioner furnishing the requisite documents.

Important Clarification

This is a pre-GST Central Sales Tax ruling that has no direct bearing on GST law — "C" Forms and the CST Act concessional-rate mechanism for high speed diesel (a non-GST petroleum product) continue to operate in a parallel, legacy framework alongside GST for specified petroleum products.

Sections Involved

  • Central Sales Tax Act, 1956 — Section 2(d) (definition of "goods"), Section 8 ("C" Form concessional rate mechanism)

Decision – In Favour of

Petitioner (M/s Orient Refractories Limited) — writ petition allowed, following the Hindustan Zinc precedent.

Case Details

  • Court: High Court of Judicature for Rajasthan at Jodhpur
  • Case: D.B. Civil Writ Petition No.16350/2018
  • Neutral Citation: 2023:RJ-JD:25359-DB
  • Coram: Hon'ble the Chief Justice Augustine George Masih and Hon'ble Mr. Justice Vinit Kumar Mathur
  • Date: 10.08.2023

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