C form

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Parthasarathi (Querist)

02 November 2013 I Purchased wheel alignment machine with c form condition, and i got the C form through online. now the Tamilnadu Commerical Tax department send a notice to me for the above said goods purchased will not be used for manufacture of finshed goods. its against provision of sec 8(3)(b) of the CST Act. its correct. please guide me

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

02 November 2013 yes. it is correct. C form purchase generally not allowed for capital goods unless it is allowed in your CST registration certificate, please check whether the wheel alignment machine mentioned in your CST registration certificate to purchase against C form

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Parthasarathi

Parthasarathi (Querist)

03 November 2013 Thanks for your answer. we got the approval for this machinery purchase in CST Registration certificate form B. Now the dept raise the notice for the above said machine used for service purpose, its not used for mfg, so its against the law. its correct please guide me.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

04 November 2013 If the goods mentioned in the registration certificate gives right to issue the C form and purchase. but the goods manufacturing or capital goods is not eligible for C form. either it will be misrepresented or misinterpreted while registration. so you can check with the department for allowing the same with mention as you have got permission through registration certificate, still they deny, you have to cancel and purchase with paying difference tax

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