The Bombay High Court has directed the Commissioner to pass a reasoned order within 2 weeks on why the C forms are not being issued despite withdrawal of the circular.
Earlier, the Commissioner of Maharashtra State had issued Circular 47T of 2018 saying that C form cannot be issued for post GST period due to change in definition of “goods”. Subsequently the circular was withdrawn on 14.2.2019.
However, the Department was not issuing C forms even after 14.2.2019 and has not been replying to any representations.
Before the High Court, the petitioner alleged that the department is not issuing Form C in respect of its purchase of natural gas from Gujrat which is used in the manufacture of polyester staple fibre. They claimed that the action is unjustified.
The bench comprising Justice M S Sanklecha and M S Sonak held that “This notwithstanding the change in the definition of “goods” under section 2(d) of the Central Sales Tax Act, 1956, being limited as six items enumerated therein, the same would not govern the meaning of the word ‘goods’ under section 8(3) of the Central Sales Tax Act, 1956. However, we are of the view after the withdrawal of the impugned Trade Circular No. 47T of 2017 dated 11th July, 2017, the officers of the sales tax would not be constrained by the above circular in interpreting sections 2(d) and 8(3) of the Central Sales Tax Act, 1956.”
“In view of the above, it would be appropriate that the Petitioner make a representation to Respondent No. 2 – Commissioner of State tax with copy to its assessing officer being Dy. Commissioner of State (E635) setting out its case/claim for the issuance of “C” Form on purchase of natural gas from Gujrat. This representation would be made by the Petitioner on or before 18th June, 2019,” the bench said.
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