CST- purchase of first aid box and items for factory own use -can we issue C-form

[Asked by Guest]

Interstate purchase of first aid items for own use in the manufacturing unit can be treated as CST purchase?

Can we issue C-form for this transaction?

[KASTURI SETHI]

Dear Querist,. Why are you talking of CST and Form C in GST era ? Pl.clarify.

[Praveen Nair]

Dear Tony

I presume that you are dealing with your assessment query where the Tax officer might have raised issue related C-form.

Please note that Purchases under concessional rate (C-Form) in CST can be done for manufacturing unit if used in the Manufacture or Processing of goods for Sale.

Check whether First-Aid Box forms input to manufacture / processing?

[KASTURI SETHI]

In support of Sh.Parveen Nair's reply, in Central Excise and Service Tax, credit was allowed as input/input service in relation to manufacture of goods and providing taxable service. The following case laws can be helpful:-

2015 (37) S.T.R. 379 (Tri. - Del.) = 2014 (10) TMI 90 - CESTAT NEW DELHI JAYPEE SIDHI CEMENT PLANT Versus COMMISSIONER OF CENTRAL EXCISE, BHOPAL

[KASTURI SETHI]

Firs Aid Boxes are classified under Pharmaceutical goods. Go through the case law:- See Para 11.

2007 (211) E.L.T. 521 (S.C.)  = 2007 (4) TMI 617 - SUPREME COURT OF INDIA SPAN DIAGNOSTICS LTD. Versus COMMISSIONER OF C. EX., SURAT

[Ganeshan Kalyani]

statutory form is supplied by the department on the item used in manufacturing process . hence in my view form c cannot be obtained for first aid.

[YAGAY and SUN]

C Form can only be issued in following conditions

Goods used in manufacturing, Trading , Packaging, in generation of electricity or in telecommunication. First Aid items do not fit in any of the aforesaid conditions. Hence, C form cannot be used for purchase of such goods.

AI Summary

Concessional CST via C-form denied for first aid items not used as inputs in manufacture, so concessional rate unavailable.
Eligibility for concessional CST via Form C requires that purchased goods be used as inputs in the manufacture, trading, packaging, power generation, or telecommunication of goods for sale. First aid boxes and related items, being routine workplace welfare supplies and not demonstrably consumed in the manufacturing process, do not ordinarily meet the nexus required for Form C issuance; administrative practice and cited analogies therefore indicate Form C is not appropriate for such purchases.