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2015 (7) TMI 587

Issuance of 'C' forms - subsequent sale against E-1 / E-2 forms - The petitioner has been denied "C" Form by the Board (purchaser of the goods) on the ground that the petitioner has not produced any proof of payment of tax under the CST Act - Held that:- the first sale alone will be taxable and the tax on subsequent sale will be exempted if dealers are registered. Therefore, the Board cannot insist proof of tax paid by the first seller.

For the reason that the Board has already admit .....

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writ petitioner is a Company which had executed contract works on behalf of the Kerala State Electricity Board (for short, "the Board"). They have approached this Court seeking a writ of mandamus directing the Board to issue C' Form declaration for the value of materials supplied and as admitted in Ext.P1 certificate. It is submitted by the petitioner-Company that the Board has agreed under clause 14.4 of Instruction to Bidders as follows:- "14.4 Construction of sales Tax dec .....

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f tax under the CST Act. It is also submitted that invoices issued by the petitioner are not in the name of the Board and invoices are tampered. 4. In this matter, the Commercial Tax Officer was also impleaded. It is submitted that the petitioner, after purchasing materials, bring the same to Kerala and supply it to the Board as a part of intra-State works contract and therefore, the petitioner is not entitled for the benefit of CST Act. 5. The learned counsel for the petitioner would submit tha .....

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stered dealer, if the goods are of the description referred to in sub-section (3) of section 8, shall be exempt from tax under this Act: Provided that no such subsequent sale shall be exempt from tax under this sub-section unless the dealer effecting the sale furnishes to the prescribed authority in the prescribed manner and within the prescribed time or within such further time as the authority may, for sufficient cause, permit,- (a) a certificate duly filled and signed by the registered dealer .....

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ture referred to in this sub-section." (emphasis supplied) 7. Rule12(4) of the Central Sales Tax (Registration and Turn Over) Rules, 1957 prescribes that certificate referred in Section 6(2) of the CST Act which shall be either in Form E-1 or Form E-2. Thus, it is admitted now by the petitioner that he has issued "C" Form to the first seller who in turn issued Form E-1 to the petitioner. The petitioner's case is that he has made the sale to the Board during the movement of goo .....

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he dictum laid down by the Hon'ble Supreme Court in A & G Projects and Technologies Ltd. v. State of Karnataka[(2009) 2 SCC 326] wherein in para.16 it was held as follows: "16. Analysing Section 6(2), it is clear that sub- section (2) has been introduced in Section 6 in order to avoid cascading effect of multiple taxation. A subsequent sale falling under sub-section (2), which satisfies the conditions mentioned in the proviso thereto, is exempt from tax as the first sale has been su .....

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oner, they are bound to issue "C" Forms as and when Form E-2 certificate is received from the petitioner. It is always open to the Assessing Authority to consider genuineness of the claim for exemption claimed by the petitioner in appropriate proceedings. The issue whether the petitioner is entitled for exemption and has satisfied the conditions under Section 6(2) of the CST Act cannot be decided in these proceedings at the instance of the Tax Department. Thus, the writ petition is dis .....

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