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According to the Petitioner, the Respondent no. 3 visited the Petitioners' Codli Mines and its iron ore processing facility at Amona 28th July 2025 WP-876-17-WP-856-2018.doc Jetty and directed the Petitioner to furnish various information such as details of HSD procured, stored and consumed and the Petitioner complied with the requisite details.

The Respondent no. 3 also sought a detailed statement of the registration number of vehicle of which the machinery with the Road Transport Department as well as the value or amount of HSD consumed by each vehicle. Further, it was also informed that on verification of the details/statement of consumption of HSD furnished by the dealer, it was found that the HSD is being consumed for purposes other than mining i.e. for the purpose of its re-sale to mining trucks and transporters/private truck owners and therefore it has become difficult to classify the use of HSD as consumption for mining purpose and for re-sale. Therefore, a detailed statement was sought being duly certified, signed and stamped in order to process the applications for issuance of declaration of Form 'C' in terms of the interim order passed by the Court.

Despite this information being furnished, on 06.02.2018, the Assistant Commissioner Tax Officer disposed off the application filed by recording that M/s. Vedanta Limited is an unregistered person under the Goa VAT Act and CST Act, 1956 do not permit issuance of any declaration in Form 'C' to an unregistered person.

Another reason in the order was spelt out in the following words :

28th July 2025 WP-876-17-WP-856-2018.doc "The dealer M/s Vedanta Limited is having big iron ore plant at Amona Jetty where iron ore is brought from the other mines and processed at processing plant. The processed iron ore is stacked at jetty and thereafter loaded into the barges for transportation and sale. In this plant & plot it is noted that, there is no mines and no extraction activities of iron ore from the earth is carried out. The goods purchased on declaration from-C at concessional rate of tax @2% should be utilised in mining. It was found that the dealer is engaging transportation services from private truck owners and transporters who transport mineral ore from several places in Goa to processing plant at Amona jetty. For this transportation service the dealer M/s Vedanta Limited is making payment on the basis of rate fixed per kilometre per ton of the ore transported from one place to another. This is a service procured by the dealer M/s Vedanta Limited from the open market and while making the payment M/s Vedanta Limited is deducting the amount towards the sale value of High Speed Diesel (H.S.D) supplied to the transporter on monthly credit basis. Thus the dealer M/s Vedanta Limited is re-selling the H.S.D purchased through inter-state against Declaration Form-C to the private truck owners and instead of taking price in cash, it is adjusted by deducting in the monthly transportation bill."

The above entry has thus included HSD but it restricted the registration to the HSD and petrol, which are used for running and maintenance of machinery for mining and processing of iron ore for sale. The amendment therefore restricted the availability of the benefit of Section 8 of the CST Act in respect of the course of the inter-state trade to the dealer at a concessional rate only for the HSD and petrol which is used for running and maintenance of machineries for mining and processing iron ore for sale and also for fittings used for manufacturing of sales and barges and other vessels.

47. In our considered opinion, none of the parties have paid attention to the goods for which the registration is granted, namely, HSD and petrol, which is used for running and maintenance of machinery for mining and processing iron ore for sale i.e. restricting its use to the machineries and had it been a case that the registration was specifically obtained for the vehicles, the certificate could have said so but, it only restricts the HSD and petrol used for running and maintenance of the machinery and it is not possible to segregate the two terms running and maintenance as they are used qua 'machinery for mining and for processing of iron ore for sale' indicating that the petrol or diesel which is utilized for operation of the machinery for mining and processing of iron ore for sale, would be entitled for the benefit of concessional rate and not otherwise.