Tetra Pak India Pvt Ltd Vs State of Gujarat

Heard learned advocate Mr. Uchit N. Sheth for the petitioner and learned Assistant Government Pleader Ms. Maithili Mehta for the respondent-State. Rule, returnable forthwith. Learned Assistant Government Pleader Ms. Maithili Mehta waives service of notice of rule for and on behalf of the respondent No.1. Having regard to the controversy involved in a narrow compass, with the consent of the learned advocates for the parties, the petition is taken up for hearing. Brief facts of the case are as under: The petitioner is a multinational company engaged in providing, processing, and packaging solutions. The petitioner is purchasing natural gas from Bharat Petroleum Corporation Limited during the course of its business. After the inception of the GST regime with effect from 01.07.2017, there was confusion in the trade as well as the Department regarding the continuity of registration of dealers under the CST Act and the allowability of interstate supply of petroleum products at a concessional rate under the CST Act when they were to be used in the manufacture of goods covered under the GST regime. C-Form declarations were not being issued by the sales-tax department across the country on the ground that the petroleum products were not to be used for the manufacture of goods. The Hon’ble Supreme Court dismissed the Special Leave Petition filed by the State on 13.08.2018 confirming the order passed by the Punjab and Haryana High Court in the case of Carpo Power Limited versus State of Haryana reported in (2018) 53 GSTR 24 (P&H) wherein it is held that purchase against C-Form declaration was permissible even after the introduction of the GST regime. This has resulted in a predicament for the petitioner, who has found itself unable to avail the benefits of C-Form declarations, thereby affecting its business operations and leading to increased costs. The petitioner contends that the denial of C-Form declarations is arbitrary and contrary to the law laid down by the Hon’ble Supreme Court, which has explicitly permitted such transactions under the CST Act even in the post-GST regime. The petitioner has repeatedly approached the sales-tax department, seeking issuance of C-Forms, but to no avail. Despite the clear legal position, the respondents have failed to process the petitioner’s request, causing significant hardship and financial loss. The petitioner argues that such inaction on the part of the respondents is not only unjust but also violates the principles of fair play and natural justice. The petitioner further contends that the non-issuance of C-Forms hampers its ability to competitively price its products, thereby affecting its market position and business viability. This issue, if not addressed promptly, could have far-reaching implications for other businesses in similar positions, disrupting the smooth functioning of interstate trade and commerce, which is the backbone of the country’s economic framework. The petitioner urges this Hon’ble Court to intervene and direct the respondents to issue the necessary C-Forms for the purchase of natural gas, ensuring that the petitioner can continue its operations without undue financial burden. The petitioner also seeks an appropriate order or direction to clarify the position of C-Form declarations for all businesses affected by this issue, thereby providing much-needed clarity and stability in the transitional period following the implementation of the GST regime. In view of the facts and circumstances, it is imperative that the matter is resolved expeditiously, upholding the legal precedent set by the Hon’ble Supreme Court and ensuring that the principles of justice and fairness are maintained in the application of tax laws. The petitioner’s plea highlights a critical issue that has widespread implications for businesses across the country, necessitating timely judicial intervention to safeguard the interests of the business community and uphold the rule of law.