HC allows downloading C-Form for purchase of High-Speed Diesel used in vehicle for quarrying

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Fact:M/s. TMT granites Pvt Ltd. (“the assessee”) a dealer under KVAT Act, quarried and crushed minerals i.e. granite and other building materials. The assessee used machinery and many vehicles in its operations and also the connected crushing operations and used High Speed Diesel (HSD) to fuel its machinery and vehicles, so the company claimed concession for HSD and wanted to download C Forms from KVATIS, the department’s online portal. Since the access was denied, Company has filed this writ petition.

Assessee’s Interpretation of Law:The assessee contended that the Company can claim tax concession on High Speed Diesel, it purchased and also give reference of Section 8 of Central Sales Tax Act, 1956 (CST Act) allowed it to claim that advantage.

Held:The Hon’ble High Court in the case of M/s. TMT Granites Pvt. Ltd. Vs The Commissioner, dated November 29, 2018 grants appellant access to online facility – KVATIS to download C Forms for purchase of High Speed Diesel (HSD) used as fuel in relation to machinery and vehicles intended for quarrying operations and Rejected Revenue’s plea that Section 8 of Central Sales Tax Act, 1956 (CST Act) covers only consumables relating to ‘mining’ activity and mining and quarrying are entirely different activities, therefore, appellant’s demand for tax concession or exemption cannot be sustained.

The High Court refer to SC ruling in D.K. Trivedi and Division Bench judgment in All Kerala River Protection Council, that “the irresistible conclusion is that mining referred to in Section 8 of the CST Act encompasses the quarrying as well” and relies upon SC ratio in Indian Copper Corporation Ltd. wherein it was held that if a dealer is engaged in both mining operations and manufacturing process, both being interdependent it would be impossible to exclude vehicle used for removing minded (quarried) material from place of operation to other places.

Citation: TS-706-HC-2018(KER)-EXC