For interstate transaction essence of delivery of goods is considered and not date of sales invoice for issuance of declaration in C / F forms

Office of the

Commissioner of Sales
Tax,

Maharashtra State,
Mumbai,

Vikrikar Bhavan, 8th
Floor,

Mazgaon, Mumbai-400
010.

TRADE CIRCULAR

To,

………………………

………………………

………………………

No. VAT/34/Central Rep./B-                                                                                                       Mumbai,
dt. 06.12.2007

Trade Circular No.- 70 T of 2007

Gentlemen/Sir/Madam,

Sub: Issue and
receipt of declarations in Form C / F / H.

Representations have been received by this office pointing
out the difficulties faced by the applicants for the declarations under CST Act
in Form C /Form F/Form H etc. In certain situations there is a time lag between
the raising of the sale invoice/ consignment note by the vendor situated
outside the State and the receipt of the goods by the purchaser in Maharashtra.
Normally, the dealers enter the purchase invoices in their registers as per the
invoice date, but some dealers may enter such invoice in their purchase
register on the basis of the date of the receipt of the goods or the date of
inspection of goods etc. In this situation, for a given transaction the date on
the sales invoice and the date of purchase recorded in the purchase register
are different.

2. The Sales Tax Officers in the Central Repository may
raise objections due to this mis-match of dates and refuse to issue the
declarations for the period of purchase as recorded by the purchaser or the
officers in other branches may also take an objection that the sale/consignment
transfer against the declaration cannot be allowed due to the difference in
dates. Alternatively,

the officers may ask the dealer to rectify the declarations.

3. The 2nd proviso to rule 12(1) in the Central Sales Tax
Rules (Registration & Turnover)

rules, 1957 reads as follows:

“Provided further that a single declaration may cover
all transactions of sale, which take place in a quarter of a financial year between the same two
dealers”.

The 3rd Proviso to the same sub-rule reads as follows:

” Provided also that where, in the case of any
transaction of sale, the delivery of goods is spread over to different quarters
in a financial year or of different financial years, it shall be necessary to
furnish a separate declaration or certificate in respect of goods delivered in
each quarter of a financial year”.

The first proviso to Rule 12 (5), which relates to Form F
reads as follows:

“Provided that a single declaration may cover transfer
of goods by a dealer, to any other place of his business or to his agent or
principal, as the case may be, effected during a period of one calendar
month.”

4. The interpretation of these provisos leads to following
conclusions:

a) A single declaration in form ‘C’ etc. may be issued in
case of all transactions of sale

in a given quarter between two dealers.

b) A single declaration in Form F may be issued in case of
all transfers effected in a

calendar month.

c) As far as the issuance declarations in form ‘C’ / ‘F’
etc. for interstate transactions is concerned, the essence is the delivery of
goods and not the date of sale or date of transfer printed on the sale invoice/
consignment note.

5. In view of the above, following instructions are issued
as regards the declaration in form ‘C’/Form ‘F’ /Form H etc.

A. The officers in the Central
Repository will not refuse the declarations only because for a given
transaction the date of purchase/transfer as recorded by the purchaser falls in
the next quarter/month than the date of sale printed on the sale invoice.

B. The officers in other branches
will also not object the sale/consignment transfer against the declarations in
form ‘C’ / form ‘F’/Form ‘H’ , if there is a difference in recording the date
of transactions by the purchaser and the date recorded by the purchaser falls
in a next quarter/month. This clarification will therefore becomes applicable
in case of receipt of declarations in form C, H & F from
buyers/branch/agent from other states.

C. It is needless to add that in
any case, the above referred Provisos do not, in any case, determine the date
on which the sale/transfer is said to have taken place since the provisos speak
only about the admissibility and production of the declarations and the
provisos do not determine the event of sale in any way.

This circular cannot be made use of
for legal interpretation of provisions of law, as it is clarificatory in
nature. If any member of the trade has any doubt he may refer the matter to
this office for further clarification.

You are requested to bring the contents
of this circular to the notice of all the members of your association.

(Sanjay Bhatia)

Commissioner of Sales
Tax,

Maharashtra State,
Mumbai.

No. VAT/34/Central Rep./B-                                                                                                       Mumbai,
dt. 06.12.2007

 Trade Circular No.-
70 T of 2007

1. Copy forwarded To
:

a. All the Addl. Commissioners of Sales Tax in the State.

b. All the Joint Commissioner of Sales Tax in the State.

c. All the Sr. Dy. Commissioners of Sales Tax in the State.

d. All the Dy. Commissioner of Sales Tax in the State.

e. All the Asstt. Commissioners of Sales Tax in the State.

2. Copy forwarded
with compliments for information to:

a. The Deputy Secretary, Finance Department, Mantralaya,
Mumbai.

b. The Under Secretary, Finance Department, Mantralaya,
Mumbai.

c. The Accounts Officer, Sales Tax Revenue Audit, Mumbai and
Nagpur.

3.Copy to
: All the Desks and Desk Officers in the office of the Commissioner of Sales
Tax, Maharashtra State, Mumbai.

( DILIP DIXIT)

Addl. Commissioner of
Sales Tax (2),

Maharashtra State,
Mumbai

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