NON-ISSUANCE OF 'C' FORM BY THE REGISTERED DEALER

[KASTURI SETHI]

Dear Experts,

During the year 2013-14 and 2014-15, the registered dealer (purchaser) did not issue 'C' Form to the seller on account inter-state sale. Resultantly, Excise & Taxation Department confirmed the demand against the seller and attached the bank account of the seller for recovery of demand along with interest. Till date, the buyer has not issued 'C' Form.

Is there no provision in CST Act for taking action against the purchaser for non-issuance of 'C '-Form ? Is the purchaser not statutorily bound to issue C Form within stipulated period ?

Experts are requested to throw light on the above issues.

Thanks a lot.

AI Summary

Non-issuance of C form: seller bears tax liability and may pursue civil recovery; no statutory buyer penalty.
Absence of C Form from a purchaser makes the seller liable to assessment at the regular intra state tax rate with interest; the CST Act contains no provision to directly penalise or fix tax liability on the purchaser for non issuance. The seller must obtain and produce the C Form and, if not provided, may either pay the departmental demand and pursue civil recovery from the purchaser or, if a belated form is supplied, seek adjustment or refund from the tax authority. A quarterly periodicity for issuance of the form has been noted, and CST continues to govern certain specified products not covered by GST.