• Feb
  • 09
  • 2010

CST Act – C Forms can be submitted even at appellate stage

Posted In GST | | 51 Comments »

Under section 8(1) of the Central Sales Tax Act 1956 an Interstate sale to a registered dealer can be made at the concessional rate of Central sales tax i.e. @2% existing at this time. But for claiming concessional rate of CST the seller needs to produce a declaration in the prescribed form duly filed and signed by the registered dealer in a prescribed form obtained from a prescribed authority.

The prescribed form for claiming concessional rate of CST u/s 8(1) is C form which is obtained by the purchaser from the sales tax authorities in his state and is given to the seller for the goods purchased at concessional rate. C form obtained from the purchaser needs to be furnished by the seller to the prescribed authority within 3 months from the end of the period to which the form relates as per rule 12(7) of the CST(R&T) Rules 1957. But the Prescribed authority may allow furnishing of C form after the said period if satisfied that the person concerned was prevented by sufficient cause from furnishing the C form within the said time.

The dealers in Punjab usually are asked to deposit the C forms along with their annual statement the last date for filling of which is 20th November every year or sometimes the date for submission of C forms is extended to 31st march or some other date. But sometimes the selling dealers are not able to file the C forms due to reason of non availability of C forms with the purchasing dealers or for some other reason. In such cases the C forms can be submitted even after the filling of annual statement or even at the appellate stage.

It has been held by the honorable Punjab & Haryana High court in R.S cotton Mills vs State of Punjab (Download Case Law) decided on 24-09-2008 relying upon the decision in Prestolite India Ltd vs The State of Haryana & others (1988) 70 STC 198 to the effect that C or D forms could be filled even after the filling of the return or at the appellate stage and same could be taken cognizance of.

Hence the C forms can be submitted even after the filling of annual statement i.e. at the time of assessment or afterwards and the same can be taken cognizance of since no loss is caused to the revenue by not filling the C forms along with annual statement.

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Read Other Articles from Advocate Amit Bajaj

(Author – Amit Bajaj Advocate, Bajaj & Bajaj Advocates, 128, Sangam complex, Milap chowk, Jalandhar City (Punjab), Email: amit@amitbajajadvocate.com, M +919815243335)

 


51 Responses to “CST Act – C Forms can be submitted even at appellate stage”

  1. sri kumar says:

    Dear Sir, We supplied paint raw material to one customer placed in telangana from pondicherry. my office is in pondicherry, supplied in 2010 now customer has closed his factory and even took noc from department, customer has not issued form c for 3 quarters, now my office people wants c forms, is it possible to get c forms from cto even after receiving noc by the customer. binder is the product which we sold to customer which is 5% full tax but my office people are asking 12.5% difference on total invoice value as same demanded by pondy cto. is it correct ? pls advice as this situation putting lot of pressure on me. pls advice me sir.

  2. Daanish Islam says:

    1) if any seller sale the goods to registered dealer in CST and purchaser is provided the c form in time but the seller could not mentioned the central declaration form in R.10 for the period of 3rd quarter 2013-14 by bonafide mistake that due to that department imposed the tax liability 5% in place of 2% which is seller ready to pay tax on missing of central declaration form only. but department. also impose the interest on diff. 3%(5-2) tax amount. Here my case is that we could not submitted “c” form in R. 10 and seller would like to mentioned “c” form in R. 10 after the expiry of date. please provided me related case law which help me to prove my innocence/bonafide mistake. please provided me case law related to that how seller save from interest liability and also deposited the “c” form which the seller could not mentioned in R.10.

    MY email id is vakiladvocate1980@gmail.com

  3. Daanish Islam says:

    1) if any seller sale the goods to registered dealer in CST and purchaser is provided the c form in time but the seller could not mentioned the central declaration form in R.10 for the period of 3rd quarter 2013-14 by bonafide mistake that due to that department imposed the tax liability 5% in place of 2% which is seller ready to pay tax on missing of central declaration form only. but department. also impose the interest on diff. 3%(5-2) tax amount. Here my case is that we could not submitted “c” form in R. 10 and seller would like to mentioned “c” form in R. 10 after the expiry of date. please provided me related case law which help me to prove my innocence/bonafide mistake. please provided me case law related to that how seller save from interest liability and also deposited the “c” form which the seller could not mentioned in R.10.

  4. vishwanath says:

    For the whole year transaction My supplier issued one Single ‘”C” Form for the year 2006-2007. Hence my assessing officer (in Mumbai) Rejected the single “C” Form and imposed Balance Tax + Interest + Penalty.

    So let me Know in what ground the STO Reject the the “C” form and What is the Correct procedure ? How i can Challange it ? Pl Let me Know.

  5. ARSHAD KHAN says:

    Sir,

    I work for a company in Andhra Pradesh. We have despatched goods from Hyd to Delhi with an Invoice CST 2% against C Form. Now the purchaser claims that he has not mentioned that he shall provide C Form in his Purchase Order. Please help me with a Rule/notification number which express that in Interstate transaction when Sales tax is consissional charged C FORM is mandatory.

  6. Subhendu Chaki says:

    Sir,
    I got my cst (r.o.c) in July 2012 and sold my products (steel furniture) in Bihar .The purchasers gave me the way bill numbers but now denied to give me the c form.What can I do now? Please help me.

  7. anand medical & gen. stores says:

    Hello sir… I have a retail pharmacy store at vapi, gujarat.. I wants to purchase few goods from other states like Daman ,Dadra & Nagar haveli (U.T.) and Maharastra…kindly guide me regarding the mode of transictions… What r the benifits that i can take with this…?
    Thanks regards,
    Hitesh bhanushali.

  8. surbhi.manchanda says:

    Dear sir,

    please am waiting of your reply for c form submision related query and intt. on non submitting c form related case law . reply as soon as possible am waiting .

  9. surbhi manchanda says:

    sir,

    1) if any seller sale the goods to registered dealer in CST but he is not provided the c form be on time or even after that due to that deptt impose the tax liability 5% in place opf 2% which is am ready to pay but deptt also impose the intt. on diff. 3%(5-2) tax amt. please provided me related case law which help me to prove my inocense am not faulty if dealer not provide the c form even he was registered dealer . please providded me case law related to that how am save from intt. liability.

    2) and thanks sir, u given the c form related case law on web site but its only one, i need more than one case law till am prove my point more strongly regarding c form submit in appeal if deptt. not given the time or notice for submission of c form.

  10. madavkiran says:

    sir

    i am madavkiran from andhra pradesh i need some information for how to submit

    C &
    H from in C T O office

  11. moni babu.kolli says:

    dear sir
    i am from andhra pradesh myns is a leather trading company , we are supplying leather to tamil nadu tannerys year 2006-2007 “c” forms we r not submitting because of some reasons . on that time my commodity tax percentage is 3% .in 2010 we are submitting c” forms but the department didt accept my c’ forms and they send notice to pay 12.5%of tax as because of not submitting c” forms please guide me and tell me the actual percentage of tax for not submitting c” forms and also send appropriate text notes with sections about this case
    thanking you
    moni babu.kolli

  12. Vimal Kumar says:

    Sir
    I have not received “C” Form from the customer even at the time of assessment, and told I will pay difference of tax but The dept. says we have to pay penalty/interest as we have not filed the “C” Form or paid full rate of tax on the due date?? What should I do now.
    My cell No.9999515033

  13. Mahammad says:

    Dear sir/Madam

    In this CST 2% (Central Sales Tax) we are issuing Form C inter state purchase. Same company A (authorized party) having two branches two TIN number. We are purchase from two branches same materials. How to issued Form C.

    Whether we will issue Form C both branches or each separate branch

    tell me sir ASAP

  14. Ramakrishna says:

    Dear Sir

    Can consignee provide the C form to the 1st Seller

    Ex. A. material supplier
    B. buyer ( asking A to supply material to C directly)
    C. consignee who is the register dealer and can provide C form to A

    In the above case i requesting you that can C provide the c form to A . ( as material final end user basis)

    please clarify the same

    Regards
    Ramakrishna.

  15. KUNAL says:

    WE ARE REGISTERED DEALER OF WEST BENGAL,WE WOULD LIKE TO SELL GOOS IN ANDHRA PRADESH TO REGISTERED DEALER OF ANDHRA PRADESH BY PURCHASING THE SAME GOOS FORM REGISTERED DEALER OF ANDHRA PRADESH ,WHAT WILL BE THE MODE OF TRANSACTION . AND IF ANY FORM REQUIRED BY PURCHASER IN THESE RESPECT.

  16. Shivaji says:

    dear friends and sirs,
    I want clear that what is the effect, If buyer is entry the goods received date instead of Invoice generated date in the C form for the same quarter
    for Ex : Actual Invoice date is 01-04-2010 but they enter in c form is 5/04/2010.
    for this we have need your suggestion with connected case if any

    Give Suggetionfor the above said problem.

    i hope you will do the needful

  17. vineet says:

    dear sir,

    i want to know if i issue bill in 31.03.2010 but paty taken this bill in 11.04.2011 and party issue c form in year 2011-12. can i calim the c form in 2010. what will face the problem in sales tax. pls reply urgent………………………

  18. Chetan Mishra says:

    Dear Bajaj Sir,

    I would like to know what is the maximum time period to collect the C form from our customers. Say we sold materials on 1/4/2011 and due to some reasons customer delay to send us the C form against the said sale. Then what should be the maximum period to collect the same to avoid interest & penalties against that sale.

    Thanking you,
    Chetan Mishra

  19. V.V.RAO says:

    From:
    V.V.RAO

    Dear Sir,

    Shall we avail tax concession under central sales tax act, 1956, when we purchase a Forklift vehicle for our manufacturing unit purpose. Please clarify.

  20. Shivaji says:

    dear friends and sirs,
    I want cleat that what is the effect, If buyer is entry the goods received date instead of Invoice generated date in the C form for the same quarter
    for Ex : Actual Invoice date is 01-04-2010 but they enter in c form is 5/04/2010.
    for this we have need your suggestion with connected case if any

  21. suresh says:

    now i am workign in shoe industires as a purchaser domestic

    & over seas so i would like to know all rules and regulations while purchasihng require goods

  22. Suhas P says:

    I want to publish advt for loss of form c in enwas paper . Can anybody let me have the text to be published in the newspaper

  23. Rajindra says:

    Dear Sir
    Our goods attract 12.5% vat. we made outstations sales @ 2%cst. The buyer has closed his biz. Now we dont have his whereabouts. What will be the procedure now.
    Thanks

  24. S V Madhavan says:

    I want to buy material on local VAT purchase which is @ 5% (i am located in Bangalore and in Karnataka the VAT rate is 5% for paper products) and subsequently I want to sell the same to Chennai (in T.Nadu) charging CST @ 2% against C form. Question is whether i can take set off of the VAT being paid?

  25. ABHIJEET GHODKE says:

    Dear Sir,

    We made CST sale to your customer in 1st Quarter but custoerm is issuing C Form for this supply in 2nd Qtr. instead of 1st Quarter.

    It is ok for us please conform.

    Regards,

    Abhijeet Ghodke

  26. varalakshmi says:

    sir

    one of our customer (delhi) he sent “C” form excluding excise and cess amount ? pls confirm this “C” form will be accepted by sales tax authority?

  27. Jagdish says:

    Let me know wearther dealer can avail maore that n one C form form same dealer for same quarter

  28. Kuntal Sarkar says:

    Sir,
    plz give me a information in sale u/s 6(2) which dealer i can issue c form.

  29. rashmi says:

    sir i have started newly bussiness of selling safety match box in poona. for purchasing match box from tamil nadu i want vat no. please tell me the proceduare

  30. Hanuman says:

    Dear sir,
    plz give me information what tax class atech cst 2%

  31. anil says:

    sir,
    i want c form for period 2006/7 but maha sale tax dep say we are not issuing old c forms.
    my supplier want c form.
    what i can do. do they have right to refuse.

  32. Tushar says:

    Dear Sir,

    One of my new customer is not giving me c-forms because he wants compensation for damage caused by his foolish acts.

    Now what can be done in such case?
    I case i don’t receive c-forms What is the rate at which i need to pay the tax?

    please advise. Also advise if i can insist on c-forms before delivery of the material to avoid such problems?

    regards

  33. AMIT BAJAJ ADVOCATE says:

    If you are selling goods by charging CST at the state rate applicable that is not at concessional rate of 2% then there is no need for any C form from the purchasing dealer.

  34. Jayshree says:

    I want to know can we sale goods outside the state @ 4% tax instead of CST @ 2% tax against ‘C’ FORM.If the answer is yes, then is it necessary to obtain ‘C’ FORM from the purchaseing dealer. Please reply on my e-mail.

    Thanks in advance.

  35. AMIT BAJAJ ADVOCATE says:

    I dont understand what objection the local sales tax department at the buyer’s end may have on giving the duplicate copy of C form to the seller. Local sales tax department at buyer’s end has nothing to do with it except objecting to issue of C form for the goods purchased by the buyer which are not mentioned in his registration certificate.

  36. L.L.Mishra says:

    We requested our customer to issue duplicate C form as original C form got misplaced. As per requirement, we sent Indemnity bond to customer. However, Local sales Tax Department is not allowing our customer to issue duplicate C Form as in their opion it’s no more required since all the informations are available in Department’s site. What should we do now?

  37. AMIT BAJAJ ADVOCATE says:

    @sachin your querry already replied at the following link in comments

    http://www.taxguru.in/budget-2010/amendment-in-cst-act-by-finance-bill-2010.html

  38. sachin kumar says:

    Pls send me case law if sales tax deptt has lost the original c forms and duplicate with organisation.

  39. rakesh kumar says:

    Subject- Service tax of under construction building & stay order from honorable bombay high court.
    Dear Team,
    A middle class society of india ,residing in delhi as outstation person , booked a flat under construction in may-10 worth 40lakhs in noida for which possession would be in mid of 2012.after availing 30 lakh home loan. it was tough decision yet a dream to have own home encouraged me to go for this. For person like me , millions of middle class young india is under the similar situation , as to have a home in metro cities, even at this price by industry standard is cheap and categorized as part of affordable housing.
    Now from 1st of july-10 govt. had imposed service tax on under construction buildings and the minute study of the notification suggests that the same was applied from 2006 onwards , only the obligation is shifted from contractor to the builder, hence nothing new was there. taking this into account builders in NCR had started charging 2.575% on BSP & (10.36% on other charges which accounts for almost 25% of total cost-car parking , club housing , EEF,FFC,IFMS,LEASE RENT ETC) that means almost 4% of total cost of building, these builders are charging now.
    In the current Socio-economic structure where essential commodities prices had soared by 50% in a year , (and believe me i am a common man of india and by my experience in last 10 yrs suggests that cost of living have increased 5 fold not less, i am just 27 yrs now , what would be the future of young india- india rising? .
    Please take a look on this issue you have the power of media. Voice of people of india . Honorable Bombay high court had yesterday issued the stay order on the same .
    These builders and real estate people are too greedy and directly imposing the same on common people even after the stay order.
    This govt. of india is trying to squeeze every earnings of common people and distributing the same for the well wishes of upper and lower class of the society. We are also your child may be we don’t have power of rich nor the power of blind vote , but we are more than 50% of population of the nation. Today you don’t care , time will be there when you were not be in the position to take care.
    We don’t have reliable source of information in the real estate pricing and govt. of india is too slow to organize this sector on various benchmark (real housing index credit score of the builders etc) which will help on us , instead they are imposing extra burden on us.
    At least we the common man of india expects from the govt. of india to withdraw the service tax from the residential business as stamp and registration other govt. charges accounts for almost 10% of total cost of home.
    I don’t know in which country of the world where avg. cost of residential flat is more than 100 times of per capita income( in the US It is almost 5 times ) . Don’t divide India and Bharat , India could not sustain growth unless and until Bharat join the hand .
    I had send email regarding the same to the-
    Honorable President of india.
    Honorable Prime minister of india
    Sonia Gandhi ji
    Urban development ministry
    Etc.
    This is the voice of common people of India

  40. Madhusudan Mishra says:

    Dear Sir,
    We have sold to material to the party of Mahrastra and they issued “C” form but the same is lost in transit.And for obtaining duplicate “C” form We provide them Indemnity Bond, FIR Copy and Two Newspaper publication regarding lost of “C” form now the party saying that you also provide “No Objection Certificate” from your local CTO that the Duplicate “C” form is acceptable. I talked about it to our local CTO (Chhattisgarh) but they denied to issue any type of latter due to lack of rules. Now what we can do while MH STO not ready to issue Duplicate “C” form lack of NOC. I want know that any rules available regarding issue of NOC from the delear’s State STO. If yes please provide copy of rules

    Thank you
    Madhusudan Mishra
    Durg(C.G.)

  41. mithun chopra says:

    hello sir,
    does any amendment is made by central govt in cst act such that
    dealer doesn”t required to submit ‘c’ form and he can sale the goods with or without “c” form
    @ 2% cst. sir i heard lot of rumours but didn”t get any amendment copy

  42. Venkatesh says:

    Sir
    I have not received “C” Form from the customer even at the time of assessment, and told I will pay difference of tax but The dept. says we have to pay penalty/interest as we have not filed the “C” Form or paid full rate of tax on the due date?? What should I do now.

  43. P.S.Ravi Shankar says:

    Dear Sir,
    We sold machinery to a customer in a different State.We recived the C Form from the customer but lost it before we could submit to the CTO of our circle.We got the FIR,advertisement in the newspaper and Indemnity in Form G and sent them to our customer who in turn,approached his CTO for issuing of duplicate C Form but the CTO refuses to give.His reasoning is that there is no concept of duplicate C form and that my customer has to give a declaration that the original C form was issued by them to us and that it has been lost by us.
    What should we do now and whom should I contact in Sales Tax Dept to sort this out as I feel the CTO is ignorant.Even after showing sub rule 2 and 3 of Rule 12 of CST(registration and Turnover) Rules,1957,he is not willing.
    Pls enlighten us more on this giving case studies,if possible.
    Thanks a lot in anticipation.

  44. Diwakar says:

    We are a company based in Andhra pradesh, and had purchased a machinery from West bengal. Since we are not registered with Sales tax dept.we dont have our tin no, and hence had paid the westbengal state vat @ 4%. now do i need to pay any other tax in andhra pradesh whie bringing the goods from west bengal. Pls help me in this regard it is very urgent

  45. Amit Bajaj Advocate says:

    Dear Ashwani ji plz leave ur email id in the comment i will send it

  46. Amit Bajaj Advocate says:

    The R S cotton Mills Judgement have already been sent to the administrators and the same is available above for download

  47. Ashwani sharma says:

    Mr.Bajaj ji,

    Kindly send me the judgements, if possible.

    Regards,
    Ashwani Sharma

  48. Amit Bajaj Advocate says:

    I havent seen the representation made by the AIFTP as referred above. But here in Punjab it has been progressively held in many cases decided by Punjab VAT Tribunal(the appallete authority)that the cognizance of the C forms should be taken evan at the appallette leval relying upon the above said judgement of Prestolite India Ltd. The latest case is Alkon Laboratories vs State of Punjab(2009)14 STM-7(PVAT Trib) decided on 17-07-2009 wherein the state has been directed to entertain the C forms evan at the appallette leval.

  49. Amit Bajaj Advocate says:

    send me ur mail id i will send the judgement

  50. ashwani says:

    I checked upwith judgements of 24.09.2008 . there is no such judgement,please eleborate both judgements.

  51. ca KC SINGHAL says:

    pl refer the representation made by all India federation of tax practitioners association in their budget memorandum and they have apprehension that C form may not be accepted after first assessment stage and relevant rules and sec 8 (4) have been amended. Pl put your reply referring any latest case referring the recent amendments in act and rules of cst, 1956

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