Purchase of capital goods under c form.

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Kunal Kedia (Querist)

03 November 2012 Sir,
We need to purchase tipper for our mines, but according to Sales Tax department of our district Janjgir-Champa ( C.G.) Purchase of Tipper against C-form is against law.

Is the above information correct ? if not please suggest some remedy for it .

Amol S Joglekar

Amol S Joglekar (Expert)

03 November 2012 It is for captive consumption.... there is no any breach of law in issuing C form for such purchases. When you will sell this used tipper after say 4-5 years... it will be regarded as the first sale in C.G. and accordingly VAT is required to be collected by you.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

04 November 2012 According to CST Act machinery required for manufacturing and mining can be purchased by using 'C' form.A tipper can be classified as a mining machinery. therefore,'C' form can be issued for its purchases. It is not an ordinary motor vahicle in this case.....MJK

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

17 November 2012 Both the experts have correctly given the answer and I agree with them. The CST act is a Central Act and it cannot be restricted in a particular State. So go ahead there will be no problem.

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