Non Issuance of FORM C

[Gargi kumari]

If, under an agreement, the Purchasing Dealer has failed to issue FORM C to the Selling Dealer what remedies lie with the Selling Dealer under Law? And can the Selling Dealer seek directions for issuance of FORM C from the Purchasing Dealer? Please provide any case law on the same.

AI Summary

Purchasing Dealer's Failure to Issue Form C Under CST Act Leads to Higher Tax and Legal Consequences for Seller. A purchasing dealer's failure to issue Form C under the Central Sales Tax (CST) Act results in significant legal and financial consequences for the selling dealer. Without Form C, the seller cannot claim concessional tax rates, leading to a higher tax burden. The seller may issue a debit note for the tax difference and initiate recovery proceedings. Courts typically do not compel purchasers to issue Form C, and sellers often face penalties or loss of tax credits. Sellers have rights to demand Form C, recover full tax, and seek legal redress if necessary. Landmark judgments emphasize adherence to CST Act requirements for tax benefits.