Calcutta High Court (Appellete Side)
M/S. Steel Authority Of India Ltd. Iisco ... vs Union Of India & Ors on 9 January, 2020
Author: Arindam Sinha
Bench: Arindam Sinha
1
09.01.2020
ap
26
W. P. 11870 (W) of 2019
(Assigned)
M/s. Steel Authority of India Ltd. IISCO Plant, Burnpur
Vs.
Union of India & Ors.
Mr. Rahul Tangri
Ms. Sushmita Shekhar
... For petitioner.
Mr. Abhratosh Majumder, A.A.G.,
Mr. Soumitra Mukherjee
Mr. Avra Majumder
... For State.
Mr. Tapan Bhanja
... For Union of India.
Mr. Tangri, learned advocate appears on behalf of petitioner and relies on
paragraphs 3 and 25 in judgment dated 28th August, 2019 of a Division Bench of High
Court of Jharkhand in several writ petitions and connected applications therein [W.P. (T)
no. 6048 of 2017 Tata Steel Limited, Jamshedpur vs. The State of Jharkhand & Ors.
along with other writ petitions]. He submits, writ petitioners before that Court were also
those engaged in manufacturing process and thereby bulk purchasers of High Speed
Diesel (HSD). They are entitled to have issued From - 'C' was held by the judgment. Mr.
Majumder, learned senior advocate, Additional Advocate General appears on behalf of
State and submits, purchase of HSD by petitioner is for running vehicles. It is not entitled
to issuance of the form.
2
Impugned communication dated 6th May, 2019 quotes a judgment of Punjab and
Haryana High Court in CWP no. 29437 of 2017 (Capro Power Limited vs. State of
Haryana and others). A sentence from the quote is extracted and reproduced below: -
"... The purchase of the said goods for purposes of re-sale, use in the
manufacture or processing of goods for sale, in the tele-communications
network or mining or in generation or distribution of electricity or any other
form of power would qualify the purchaser for registration under Section 7(2) of
the CST Act. ..."
Understanding of the authority of the quote in the judgment is in the following paragraph of
the communication, which is also quoted below: -
... After the amendment of section 2 (d) of the CST Act, a registered dealer is
entitled to get Form "C" for the purchase of six goods mentioned therein as well
as for use in manufacture of these goods. Besides this, as per provisions of
section 8(3)(b), these six goods can also be purchased against Form "C" fur use
in the telecommunications network or mining or in generation or distribution of
electricity or any other form of power. This may include generation of
electricity for captive power plant."
Provision in clause (b), sub-section (2) of section 8, Central Sales Taxes Act, 1956 is
reproduced below: -
"8...
3
3) 4[The goods referred to in sub-section
( 1),]
[(a) ***]
(b) 6[***] are goods of the classes specified in the certificate of registration
of the registered dealer purchasing the goods as being intended for re-sale
by him or subject to any rules made by the Central Government in this
behalf, for use by him in the manufacture or processing of goods for sale or
7 [in the telecommunications network or] in mining or in the generation or
distribution of electricity or any other form of power;" ....
(c)
(d) etc."
While petitioner urges interpretation of the above clause as applicable to a registered
dealer purchasing the goods being intended for use by him in the manufacturing or
processing of goods for sale, submission on behalf of respondents is that high speed
diesel, as an item of specified goods, is used by petitioner to run vehicles.
Parties will be heard further on adjourned date. List on 16th January, 2020.
(Arindam Sinha, J.)