Forklift purchase against C Form and tax credit validity of entry tax

[Parth Bhatt]

Dear Sir

1)Can we purchse Forklift ( two scenario i) for general use ii) for specific use in manufacturing process ) against C Form with 2% cst ?

2)can we take credit of entry tax paid on purchase of it ? I knw we cant for VAT ITC as it was answerd for VAT credit but want to confirm as its entry tax now in scenario.

3)what to do in case where dealer has not provided Form 403 road permit ? can it be considered local purchase in absense of availability of form 403 ? wt r consequnces/remedies for ds 403 issue

AI Summary

Form C eligibility: inter-state purchases allowed if goods are specified and used in manufacture; tax credit governed by local rules.
Whether a forklift may be purchased against Form C turns on two conditions: the forklift must be a category authorised in the purchaser's CST registration and must be acquired for a permitted purpose such as use in manufacture or processing. Form C must be obtained from the Sales Tax Officer for concessional inter state treatment. Entry tax credit is governed by local entry tax rules (see Gujarat Tax on Entry Rules s.4(2)), and absence of a road permit (Form 403) may alter classification and require reliance on the relevant checkpost/permit circular and CST turnover rule provisions.