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Judgment
Heard learned counsel for the petitioner Company, learned counsel for the State and learned counsel for the respondent Heavy Engineering
Corporation Limited (hereinafter referred as ‘HEC Ltd.’).
As the same issue is involved in both these writ applications, they are heard together and are being disposed of by this common order.
Pursuant to the purchase order made by the respondent HEC Ltd., the petitioner Company supplied materials to HEC Ltd., by way of Inter-State
sale at the concessional rate of 2% of the Central Sales Tax, for which, the petitioner was entitled to get Form-C from the respondent-HEC Ltd. The
said Form-C was not issued by the HEC Ltd., to the petitioner Company, for the reason that the same was not supplied to HEC Ltd., by the State
Government. As the required Form-C was not given to the petitioner by the HEC Ltd., for the purchases made by it from the petitioner, the petitioner
Company was saddled with the extra amount of Central Sales Tax (herein after referred to as ‘CST’).
In W.P.(T) No. 734 of 2018, the quantum of Inter-State purchase was to the tune of Rs. 1,15,06,960.75/- of which, the differential amount of CST
was assessed as Rs. 18,75,344/-, whereas in W.P.(T) No. 791 of 2018, the quantum of Inter-State purchase was to the tune of Rs. 92,59,987.00, upon
which, the differential amount of CST assessed was Rs. 9,86,549/-. Thus, in all, the amount of Rs. 28,61,893/- was assessed as differential amount of
the CST upon the petitioner Company, for the transactions in both these writ applications, which relate to financial years 2013-14 and 2014-15,
respectively.
A counter affidavit has been filed on behalf of the respondent HEC Ltd., in W.P.(T) No. 734 of 2018, wherein in paragraph-8, it is admitted that
this respondent had requested several times for issuance of Form-C to the Department of Commercial Taxes, but due to non-issuance of Form-C
from Sales Tax Department, this respondent failed to issue Form-C to the petitioner Company, and in paragraph-9, it is stated that the respondent shall
immediately issue Form-C after receipt of the same from the Department of Commercial Taxes, as the respondent had procured the raw materials,
which have been used in manufacturing / processing of goods for sale. As such, there appears to be dispute between the respondent HEC Ltd., and
the respondent State Government for issuance of Form-C, but the fact remains that in absence of Form-C, the respondent HEC Ltd., had purchased
the raw materials at the concessional rate of the Central Sales Tax at the rate of 2% only, in anticipation that it shall be getting Form-C from the State
Government. Thus, it is apparent that for no fault on part of the petitioner Company, the petitioner has been saddled with the differential amount of
Central Sales Tax to be levied, which in both these writ applications are quantified at Rs. 28,61,893/-.
The State of Jharkhand has also filed its counter affidavit, giving the reasons for non-supply of Form-C to the respondent HEC Ltd., with which, we
are not concerned as this stage.
By order dated 16.7.2018, an ad interim order was passed in W.P.(T) No. 734 of 2018, whereby taking note of the aforesaid facts, the respondent
No. 3 HEC Ltd., was directed to deposit the amount of Rs. 30,00,000/-(thirty lacs) before the Registrar General of this Court, which has since been
deposited vide challan No. J-175 dated 14.9.2018, as reported by the office.
Since the amount of Rs. 30,00,000/-(thirty lacs) has already been deposited, which is kept in the custody of this Court, we direct the Registrar
General of this Court to make the payment of Rs.28,61,893/- in favour of the petitioner Company, who in turn, shall deposit the said amount being the
assessed differential amount of CST in the Government Treasury, within the period of ten days after receiving the cheque / draft. The remaining
amount shall be refunded back by the Registrar General of this Court to the respondent HEC Ltd.
We further wish to make it clear that since the petitioner Company is not at fault in making the delay in deposit of the CST, no interest shall be
levied from the petitioner and ultimately, if it is found that Form-C could not be given to the HEC Ltd., by the State Government for any valid reason,
the liability to pay the interest, if any, shall be of the respondent HEC Ltd., only. In case, Form-C is issued by the State Government to the respondent
HEC Ltd., this respondent shall be entitled to the refund of the aforesaid amount of Rs.28,61,893/- from the State Government itself.
Both these writ applications stand allowed, with the directions and observations as above. Pending I.A. also stands disposed of.