12 January 2012
We have purchased the material from the other state. Supplier had charged CST 2% against C Form. However, we have rejected some of the material and sent back to the supplier after charging / reversing cst 2% by issuing sales invoice. We have given the C Form to the supplier after reducing the material rejection. In the sales tax assessment, authority asking for C form which should we have to get from the supplier treating it as sale.
In my opinion, the view taken by dept. is wrong as we have not sold the material but sending back the rejected material.
16 January 2012
Please note that the goods have been sent back by issuing the sales invoice and not by issuance of a debit note for purchase returns. The department is viewing this as two CST sales (one for purchase of goods by your firm and other for purchase return of goods by your firm to the supplier) which based on the available documents is correct.
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