9911796707
TMI Blog1997 (9) TMI 575X X X X Extracts X X X X X X X X Extracts X X X X ..... the Central Sales Tax Act, 1956 (for short "the CST Act"). It is also an assessee on the rolls of the Commercial Tax Officer, Nidadavolu, respondent No. 2 herein. The Corporation entered into a contract with M/s. Sumitomo Corporation, respondent No. 3 (hereinafter referred to as "Sumitomo") for supply, erection and commissioning of gas/steam turbines for generation of power. Sumitomo, it is stated, has supplied certain equipment parts and components, procuring them from suppliers outside the State of Andhra Pradesh and effected transit sales to Corporation. It is in respect of such purchases by the Corporation that it proposes to issue C form. As it claims to enjoy exemption under section 6(2) of the CST Act, it complains that the first re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... form B certificate was granted to the petitioner. It is submitted that on the strength of the registration certificate, the petitioner is entitled to purchase equipment for electricity generation, but not the spares, tools, stores and accessories, therefore, they are not entitled to receive C form declaration. It is further submitted that admittedly the machinery, plant, etc., was made available through various contractors by M/s. Sumitomo Corporation, Secunderabad, who is the main contractor for erection of the power plant at Vijjeswaram. On the ground that the said transaction amounts to sale in transit, for which the petitioner has to issue "C" declaration forms to enable the contractor to get exemption of tax on the sales of goods effec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counsel for the petitioner submits that having regard to the provisions of the CST Act and the Rules made thereunder, the petitioner is entitled to receive C form. He further submits that as M/s. Sumitomo, contractor, transferred documents in the course of inter-State trade that the petitioner will be deemed to be a purchaser in the course of the inter-State trade and he is not liable to pay tax and for that reason it is necessary for the petitioner to issue C form declaration, which the authorities cannot withhold. 6.. The learned Government Pleader on the other hand, contends that M/s. Sumitomo is the real purchaser, the transaction of purchase by the contractor is completed in the course of the inter-State trade. The subsequent step of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered dealer other than the Government goods of the description referred to in sub-section (3) shall be liable to pay tax under this Act, which shall be (four per cent) of his turnover. Section 8(3)(b): are goods of the class or classes specified in the certificate of registration of the registered dealer purchasing the goods as being intended for resale by him or subject to any rules made by the Central Government in this behalf, for use by him in the manufacture or processing of goods for sale or in mining or in the generation or distribution of electricity or any other form of power." 9.. A combined reading of the said rules discloses that when any dealer, during inter-State trade or commerce, sells to a registered dealer other than the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for avoidance of payment of tax which he would be liable to pay. The authorities will, however, be at liberty to make such an enquiry as it is necessary to see whether C forms have been properly issued and if not what is the liability of the parties under the APGST or CST Act, as the case may be. Such an enquiry need not be made at the stage of issuance of C form. What all is required under rule 9 of the said Rules is: (1) whether the person applied for C form is a registered dealer; (2) whether the goods in respect of which C form is used are included in the certificate of registration form "A"; and (3) whether he has paid the amount for the C form and produced necessary challan in proof of the payment; When these requirements are sati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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