whether cst to be charged on purchase returns

[Ramakrishnan Seshadri]

Dear Sir,

We are purchase raw materials/components on inter state purchases by issuing c form. out of the purchases made some parts has been rejected and they has to be returned. We have to raise invoice for this purchase rejectionby charging excise duty. We would like to know whether we have to charge cst or not in the invoice. if not what is the procedure.if cst is to be charged then  it will be treated as sales and we have to claim c form from them .

Kindly guide us how proceed in this issue.

Thanks & Regards,

S.Ramakrishnan.

AI Summary

CST on purchase returns: not leviable; follow excise procedures for credit reversal or delivery challan.
CST is not leviable on purchase returns because returns are not sales. For excisable goods, if input credit was availed reverse the credit and issue an "input removed as such" invoice referencing the original vendor invoice; if credit was not availed, send the goods under a delivery challan with the original vendor invoice. The need for Form JJ on interstate returns was queried but not answered.