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CST Act

This query is : Resolved 

23 February 2010 Hi All,

I want to solve a query whether CST at concessional rate of 2% would be applicable on following case or no?

One of our clients are preparing poultry feed in feed mill which is exempt from VAT in state of Punjab.

For packing this feed, they are purchasing HDPE bags from outside state i.e. Haryana. Can they issue C form against this purchase to the seller?

Sale tax department is insisting that they can't pay CST at concessional rate as the end product is not taxable at all.
Please Clarify?

24 February 2010 in my opinion, there is no bar under Central sales Tax or in C form that goods purchased on the strength of C form must be used for producing / packing of taxable goods only. refeThe decision of Hon. Madras High court in the case of State of T.N. vs K.K. Ram trading corp. (1998) 109 STC 664 (Mad)


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