The Karnataka Government issued the instructions regarding the issuance and use of C-Form declaration under the Central Sales Tax Act, 1956 from 1 April 2021 onwards.
The Government in the light of the amended definition of “goods” vide Taxation Laws (Amendment) Act, 2017 dated 4th May 2017 and the provisions under Section 8(3)(b) of Central Sales Tax Act, 1956, as it existed then, Circular instructions were issued vide Commissioner of Commercial Taxes Circular dated March 2, 2018, regarding issuance of declarations in Form C for inter-state purchase of High-Speed Diesel for use in any of the following purposes with effect from 1 July 2017.
By the Finance Act, 2021 (No.13 of 202l, the amendment to the central sales Tax Act, 1956 has been carried out by substituting clause (b) in sub-section (3) in section 8 which reads “(b) ore goods of the class or classes specified in the certificate or registration of the registered dealer purchasing the goods of being intended for resale by him or subject to any rules by the Central Government in this behalf, for use by him in the manufacture or processing for the sole of goods specified under clause (d) of section 2”.
The scope of C-Form facility for the inter-state purchase of the above six goods is examined in the light of the amended provision of clause (b) in sub-section (3)of section 8 of CST Act, 1956 and it is found that the goods referred in section 8(3)(b) of the CST Act are the class or classes of goods specified in the certification of registration of the registered dealer purchasing the goods as being intended for the sale by him or for use by him in the manufacture or processing of goods for sale only inter-state purchase of goods for use in the telecommunication network or in mining or in the generation or distribution of electricity or any other form of power is not permissible with effect from April l, 2021.
ln view of the amended provision of clause (b) in section(3) of section 8 of CST Act 1956, the government issued instructions stating that Form-C declarations to be issued for the period from 1 April 2021 onwards only in respect of inter-state purchase of goods namely, Petroleum crude, High-speed diesel, Motor spirit (commonly known as Petrol), Natural gas, Aviation turbine fuel and alcoholic liquor for human consumption for any of the two purposes only namely resale of above six goods; and use in the manufacture or processing of above six goods for sale.
The Circular instructions shall be followed scrupulously for the period from 1 April 2021 onwards.Subscribe Taxscan AdFree to view the Judgment