TaxTMI 
TaxTMI 
Goods received by an EOU under the sale in transit transaction, the benefit of CST paid can be claimed as refund. If yes under which Section of the CST ACT.
Benefit of CST
15 May 2009 
6 Replies 
11352 Views Asked by
CST exemption on sales to SEZs affects whether manufacturers can claim refund of CST paid on sale in transit supplies.
Whether a manufacturer who pays central sales tax on goods sent under a sale-in-transit route to an EOU or similar duty-free unit can claim refund of that CST depends on whether the supply qualifies for the statutory exemption. Replies in the thread distinguish supplies to Special Economic Zones-which are identified as enjoying CST exemption under the cited provisions-from supplies to EOUs, and indicate that exemption under Section 6(2)(b) and the subsection of Section 8 determine whether CST is leviable and hence whether refund or input recovery arises. (AI Summary)
Whether a manufacturer who pays central sales tax on goods sent under a sale-in-transit route to an EOU or similar duty-free unit can claim refund of that CST depends on whether the supply qualifies for the statutory exemption. Replies in the thread distinguish supplies to Special Economic Zones-which are identified as enjoying CST exemption under the cited provisions-from supplies to EOUs, and indicate that exemption under Section 6(2)(b) and the subsection of Section 8 determine whether CST is leviable and hence whether refund or input recovery arises. (AI Summary)