Pallava Textiles P Ltd v. The State Of Tamil Nadu,

IN THE HIGH COURT OF JUDICATURE AT MADRAS

Dated : 12.06.2019 Coram THE HONOURABLE MR. JUSTICE M.SUNDAR W.P.Nos.16276 and 16283 of 2019 Pallava Textiles (P) Ltd., No.27-C Sankagiri, Bye Pass Road Pallipalayam, Erode Rep. By its Authorised Signatory S.Suresh ..

Petitioner in W.P.No.16276 of 2019 Sri Santhanalakshmi Spinners (P) Ltd., S.F.No.464, 465, Pathari, Near Veppadai Pallipalayam, Sowthapuram Post Namakkal- 638 008 Repd. By its Director P.Shanmugam ... Petitioner in W.P.No.16283 of 2019 vs.

1.The State of Tamil Nadu Represented by the Secretary to Government Commercial Taxes Department Fort St. George Chennai - 600 001.

2.The Principal Commissioner & Commissioner of Commercial Taxes Ezhilagam, Chepauk Chennai - 600 005.

3.The Assistant Commissioner (ST) Tiruchengode Rural Circle Commercial Tax Office No.26, Ponnusamy Buildings, Sankari Main Road Tiruchengode - 637 211 .. Respondents in both Wps Prayer in both Writ Petitions: Writ Petition filed under Article 226 of the Constitution of India praying for issuance of a Writ of Mandamus to direct the respondents to issue "C" forms under the Central Sales Tax Act, 1956 read with the Central Sales Tax

(Registration and Turnover) Rules, 1957 to the petitioner for the purchases of High Speed Diesel from the suppliers in other States in view of the recent Judgment dated 26.10.2018 passed by this Hon'ble High Court in the case of M/s.Ramco Cements Ltd & Others in W.P.Nos.19458/2018 to 19460/2018 and the batch of cases and pass such further or other orders as this Hon'ble Court may deem fit and proper in the circumstances of the case and thus render justice.

For Petitioner : Mr.R.S.Pandiyaraj For Respondents : Mr.M.Hariharan Additional Government Pleader COMMON ORDER This common order will dispose of both these writ petitions.

2. Mr.R.S.Pandiyaraj, learned counsel on record for the sole petitioner in both these writ petitions is before this Court. Mr.M.Hariharan, learned Additional Government Pleader accepts notice on behalf of all the three respondents.

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

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

5. The central theme of both these writ petitions is purchase of High Speed Diesel Oil for use in generation and distribution of electricity and other forms of power.

5. In both these writ petitions, the petitioners were making inter-state 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), petitioners continued to purchase High Speed Diesel Oil, but, however, they could not download the 'C' forms. When the petitioners enquired with the Revenue Department, the petitioners were informed that after introduction of GST regime on and with effect from 01.07.2017, the petitioners were 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 petitioners 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.

6. 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 being 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 another Hon'ble Judge on 26.10.2018. In the batch, the lead matter is 'The Ramco Cements Ltd.,' and therefore, the aforesaid order shall be referred to as 'Ramco Cements matter'.

7. 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 Cemets authored by another Hon'ble Judge of this Court is holding the field as of today.

8. 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.

9. In other words, there is no dispute or disagreement that the instant writ petitions fall clearly within the four corners of Ramco Cements case 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 Coimabatore Private Limited'. The most relevant paragraphs are paragraphs 5 and 6 of Southern Cotspinners Coimabatore Private Limited case and the same read as follows:

'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.

6. In the aforesaid circumstances and in the 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.'

10. In the light of the narrative supra and in the light of the trajectory, which these matters has taken at the admission stage, it follows as a natural sequitur that the instant writ petitions stand 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.

11. These writ petitions are allowed. No costs. 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 Assistant Commissioner (ST) Tiruchengode Rural Circle Commercial Tax Office No.26,Ponnusamy Buildings, Sankari Main Road Tiruchengode - 637 211 +2cc to Mr.R.S.Pandiyaraj, Advocate sr.47954 W.P.Nos.16276 and 16283 of 2019 bs(co) nr 14/06/2019