Purchase of capital goods under c form.

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Kunal Kedia (Querist)
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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)
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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)
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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)
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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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