Facts of the Case

M/s Bundi Silica Sand Supply Company had been purchasing High Speed Diesel against Form 'C' under the Central Sales Tax Act, 1956, for its mining-related manufacturing activities. After the amendment to the definition of "goods" under Section 2(d) of the CST Act following GST implementation, the authorities began denying such 'C' Forms. The petitioner sought a direction to the respondents to continue issuing 'C' Forms for its interstate purchases of HSD used for mining purposes.

Issues Involved

  1. Whether the petitioner remained entitled to 'C' Forms under the CST Act for interstate purchase of High Speed Diesel used in mining activities, notwithstanding the amended definition of "goods".

Petitioner's Arguments

  • The issue was squarely covered by the Court's earlier ruling in Hindustan Zinc Limited v. State of Rajasthan & Ors. (S.B. Civil Writ Petition No.5506/2018), decided on 18.05.2018, and the same relief should follow.

Respondent's Arguments

  • Not separately elaborated; the department had denied the 'C' Forms based on the amendment to Section 2(d) of the CST Act.

Court Order / Findings

  • Noting that the issue was no longer res integra and was squarely covered by Hindustan Zinc Limited, the Court allowed the writ petition in the same terms, holding that the respondents were liable to issue 'C' Forms for High Speed Diesel procured for mining purposes through interstate trade.
  • The Court further directed that if the petitioner had already paid any excess amount due to the respondents' wrongful refusal to issue 'C' Forms, it would be entitled to refund/adjustment, to be processed within twelve weeks of a written claim with the requisite documents.

Important Clarification

This is a Central Sales Tax Act, 1956 ruling concerning High Speed Diesel -- a product that continues to be taxed outside the GST regime under CST/State VAT for specified uses -- and is not a GST case. The relief follows an existing precedent (Hindustan Zinc) rather than laying down any new legal principle.

Sections Involved

  • Central Sales Tax Act, 1956 – Section 2(d) (definition of "goods"), 'C' Form concessional rate mechanism for interstate sale

Decision – In Favour of

Petitioner (M/s. Bundi Silica Sand Supply Company) – the writ petition was allowed, directing issuance of 'C' Forms and refund/adjustment of any excess tax paid.

Case Details

Court: High Court of Judicature for Rajasthan at Jodhpur
Case Number: D.B. Civil Writ Petition No. 7574/2019
Coram: Justice Vijay Bishnoi and Justice Yogendra Kumar Purohit
Date of Order: 10 October 2023

Link to Download the Order

Click here to view/download the full order

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.