CHENNAI : The Madras High Court has set aside a communication dated March 31 of the Commissioner of Commercial Taxes (CCT) informing all Joint Commissioners (JCs) that any dealer in petroleum crude, high speed diesel (HSD), motor spirit (petrol), aviation turbine fuel, natural gas and liquor, are alone entitled to effect purchases from other States by availing concessional rate of tax.
Justice K Ravichandrabaabu quashed the communication which also stated that dealers, who are not dealing in those goods are not eligible to purchase these six goods at concessional rate of tax at two per cent by issue of C-form declaration, as they are trading or manufacturing those goods that are administered under GST Act, 2017.
Thus, the CCT directed all JCs to issue necessary instructions to assessing officers (AOs) concerned that wherever approval is required for generation of C forms, they should approve after verifying the eligibility for issuing those declarations.
In the communication dated July 17 last issued to individual writ petitioners, the Revenue department informed them that they cannot generate online C Forms for those six commodities, which are not under the GST Act, 2017. The notice called upon the petitioners to file their objections as to why penalty should not be levied as they have generated C Forms for purchasing HSD.
Allowing the 71 writ petitions the judge observed that the communication and the notices have been set aside by various other High Courts.