ISSUE OF C FORM ON THE PURCHASES OF RMPM

Please suggest whether we can issue "C form" against purchase of raw materials and packing materials which are used in the  manufacture of finished product which is NOT FOR SALE. Eg. Physician Sample manufactured along with regular pharmaceutical products.  Since physician sample is distributed free of cost to the doctors (not sold), is there any restriction in CST ACT to issue C form to the corresponding purchases?.  Again where the purchase of RMPM can not be allocated seperately to manufacture of physcian sample (where total purchases are made for manufacture of pharamaceutical products as well as physician samples), whether issue of C form voilate any CST Provisions?  Please Give your openion with appropriate section/provision of CST ACT. 

Replies (4)

For issue of C form, dealer registration is compulsory, but usage of the products purchased against C form  for a final product

chargeable to tax is not compulsory,hence there is no restriction for issue of C form for purchases made for Free samples.

 

Even though the purchases cant be allocated, it does not violate the provisions of CST ACT as there is no specific mention as

regards this in CST act.

Only opinion, expert opinions are welcome

Physician samples are not free actually, 

its the part of sales campaign, R&D, and the value is clubbed with the main clearance ultimately, 

% of such samples are almost less than 1% of total turnover, 

usage of C form is related to purchase of interstate goods, 

There is no such provision that C form can not be used in sample draw or R&D usage.

Recently decided case of Ruby Labs in Gujarath high court do not justify your above answer

can c form be issed on RM / PM & Consumbles used in R&D and not in production of final saleable product.

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