Regarding h form, Service Tax

[Gaurav Sharma]

Hello everyone

My name is gaurav and i am entrepreneur who reutrned back to india from USA around 5 years back

I am looking for a case law in uttar pradesh,if someone can help me i will appreciate

My company is registered in Uttar pradesh,i am a merchant exporter.We buy good from kolkata mumbai chennai.now we buy goods from port cities and export from the same city.later we issue h form from uttar pradesh and give to our manfacturer as our company is register3d in uttar pradesh

So far no problem happened but the commissioner requested me to give the case law which proves that there is no need to bring goods to uttar pradesh before exporting to abroad

As per the CST book,its mentioned in case of export there is no state law applicable and india is consdier as one point and delivery of good doesnt matter

Because we buy goods from so many cities,i dont find any reason to open office in every city.plus we do give BL docs and other supporting docs which clearly proves that good we pruchased ar3 only for export purpose

I will appreciate if someone can help in finding case law of this case for uttar pradesh

Regards

Gaurav

Posts / Replies

[MUKUND THAKKAR]

So far no problem happened but the commissioner requested me to give the case law which proves that there is no need to bring goods to uttar pradesh before exporting to abroad.

please submit with authority that if once we can taking delivery in uttar pradesh transaction will be complete. and what bases we will providing H form.. also you can request him for case law which proves that export goods which purchase Under H form to bring first your place and than after export.

it is purely making India BABU....

[Gaurav Sharma]

Thank you for your reply

I appreciate your quick reply

Its really disgrace to the country and then we hope that india will grow and compete in international market

I am really looking forward to some proof which can be shown as an evidence and make these people realise abut their lack of knowledge

As it sounds stupid if one have to open office at every port city

Looking forward to case law if possible

[surya narayana]

Dear Mr. Sharma,

In my view, Generally, FORM H will be issued by the buyer to the supplier of goods(Mfr.) if the said goods are meant for use in the ultimate Export intended to be manufactured by the buyer.

In your case it sounds me that as a merchant exporter, your buying various goods from different manufacturers and exporting from the nearest/convenient port . In this scenario, I am of the view that issuance of FORM H is not required since you are not using the goods in the manufactured product meant for export as you are directly exporting the procured goods as it is .

I am of the view that you are giving CT1 to the manufacturer from the Bond executed before your jurisdictional Excise Authorities as a merchant exporter.

You may please check the transaction in view of the above .

Best Regards

Suryanarayana

[Gaurav Sharma]

Thanks for your reply

H form is issued so that VAT is not applicable,its immaterial whether the good is exported by the manufacturer or the merchant exporter.This is mentioned in CST “Article 286. Restrictions as to imposition of tax on the sale or purchase of

goods.-

I just want to know if the goods should be bring to registered address state or not as its not practical to open office in so many port cities for a merchant exporter

[surya narayana]

Dear Friend,

As stated, H Form need to be given for procuring raw material required for manufacture of export goods which need to be bring to the area of factory.

Whereas, in your case since you are only exporting the goods from the manufacturers as merchant exporter, in my view H form is not required and hence there is no need to bring such goods your state wherein you have registered.

Best Regards

Suryanarayana

[Ganeshan Kalyani]

Sir, in my view to claim benefit of Nil tax on ultimate export by issuing required statutory form to the manufacturer it is essential to have export order for which you are procuring the material. In case you do have the same then it will not qualify for such exemption.

However for case law it is a fact that it requires lot of time to dig out the same from a huge case law bank and to it has to be read and understood before mentioning here to reply you.

Hence in my view if the amount involved is substantial then you may contact any of the experts of this Forum or the one in your circle. Thanks.

[Gaurav Sharma]

Dear ganeshan

There is no doubt that h form will issue in my case,

Let me explain with example.

Company is registered in uttar pradesh,company has the tin number.now company buy product from kolkata mumbai chennai.because all of the above mention city are port cities so company buy product from port cities and sell the good from same city

Now sale tax people say its important to bring good to uttar pradesh and then send again to port cities to export.

I dont know why to do above exercise

[Ganeshan Kalyani]

Better to appoint an consultant to get concrete solution. Thanks.

[KASTURI SETHI]

Addl.information regarding Form-H and export procedure

SSI Units export - Proof of export - Clarifications

Circular No. 648/39/2002-CX., dated 25-7-2002

[Gaurav Sharma]

Dear KASTURI SETHI ji

Thanks for your message

In my case the place where we are stuck is We are buying product from Kolkata,our sale tax registration is in Uttar Pradesh.Now there is no port city in uttar pradesh so we buy from kolkata and export from kolkata itself without bringing to uttar pradesh

We do have supporting document(BL/IV/PL/PO/SB etc) which proves that we have exported the goods,Now when we go to uttar pradesh sale tax department to get the H form,Sale tax department is asking why you not bringing good to uttar pradesh,

I DoNT understand that why should we bring good to uttar pradesh when goods are purchased for export purpose

why to do this unnecessary transportation

looking forward to your reply

Regards

gaurav

[KASTURI SETHI]

Sh.Gaurav Sharma ji,

This problem pertains to VAT Department. This is not my field. Sh.Sanjay Malhotra,CS Sir and Sh.Ganeshan Kalyani Sir are experts in VAT in addition to Customs, Central Excise & Service Tax. You may contact them through their email Id which are available in their profile.

Thanks.

K.L.SETHI

[Gaurav Sharma]

KASTURI SETHI ji

Thank you so much for your reply

Can i get email id of both of them so that i can send email directly to them,It really urgent

I will appreciate your quick reply

REgards

gaurav