F-FORM CAN BE ISSUED BY MANUFACTURER TO BRANCH

[V K]

 DEAR

WE ARE A MANUFACTURING PLANT , SENDING THE MATERIAL TO OUR BRANCHES AGN FORM-F.

SOME TIMES BRANCHES ARE SENDING THE MATERIAL TO THE MANUFACTURER PLANT AS STOCK TRF AGN FORM-F.

kINDLY CONFIRM ANY  MANUFACTURING PLANT CAN  ISSUE THE F FORM TO ITS BRANCHES?? . PLS GIVE ANY NOTIFICATION OR RULE AS PER CST ACT

VIKAS

[email protected]

[YAGAY andSUN]

Please clarify your query.

 

[V K]

Pradeep Ji

we have a manufac plant in MH & we are sending the Goods to our Branches as Stk TRF Agn Form-F & our branches are giving us Reqd F Forms.

Now the query is : Last year our branch had sent the material to Plant & shown in Sales Tax Return as Stock TRF Agn Form-F. Pls confirm can manufacturing plant issue the Form F to Its branches ?? as our sales Tax Officer is denying to issue the Form-F stating that Main Production Plant , who is Sending the material to its braches AGN Form-F , can not purchase the material from its braches AGN Form-F ),

PLS GIVE YOUR VALUABLE FEEDBACK...

VIKAS KAPOOR

 

 

[Rangarajan DV]

Dear Vikas

Sec.6-A of the CST Act, 1956 talks about the burden of proof in case of transfer of goods from one State to another occasioned as a reason of transfer by one dealer to another place of his business.

Section does not specify any such condition as imposed by your STO that goods should flow from factory to depot and not otherwise.  Form F is a certificate evidencing transfer from one place to business of the same business, where no transfer of ownership in goods passed on to another.

You can very well argue your case, and get the Form F

Best Regards

 

AI Summary

Form F issuance affirmed: manufacturers may issue and accept intra business stock transfer certificates for non ownership transfers. Section 6-A of the CST Act places the burden of proof for transfers between different places of the same dealer but does not require goods to move only from factory to depot. Form F serves as a certificate evidencing intra business transfers where ownership does not change; accordingly, a manufacturer may issue or receive Form F for stock transfers with its branches provided the facts establish non transfer of ownership and continuity of business.