C form against purchase returns

[ulhas mulik]

Hi, My query is with regarding the C form to be collected in case of purchase return to OMS suppliers. Our sales tax assessement is going on. DCST has raised query that, C form is required in case of purchase returns to OMS Parties. Can anyone help me on this query ? Thanks in adavance.

[ALOKE GHOSH]

Dear Mr Mulik

This has reference to your query about necessity for issuing of "C" forms against purchase return.

In the course of making purchase you have issued necessary waybill for import of such goods against the Invoice of seller and the same is duly recorded in the books and on rejection of goods for any reasons while you are returning the goods you must have issued rejection memo and recorded the same in your books and also claimed the reverse entry for such purchase return against the said bill in your return. Assuming all the conditions are fulfilled, then   you must mention the provision of section 8 of CST Act, 1956 wherein it has categorically been stated that the manner & procedure for issuing "C" forms and in case of rejection of goods there is no such prescription.

Had it been a case of stock transfer between the principal and agent , then only question of production of "F" is required.

Hope this may assist you.

Aloke Ghosh

AI Summary

C form requirement for purchase returns not prescribed; rely on rejection memo and reverse accounting entries to demonstrate return.
Where purchases were supported by waybills and entered in the buyer's books, and on rejection the buyer issues a rejection memo, records the return and makes a reverse entry in returns, the statutory procedure for issuance of C forms does not prescribe production of a C form for such rejection and return transactions; compliance is shown by the documentary and accounting reversal steps rather than a C form.