Sale of Packing Material U/ 5(3) of CST Act

[Chetan Deshpande]

Facts:

A Dealer, engaged in manufacturing of Glass Ampoules & Tubular Vials in Maharashtra, sold to a pharma Company who has exported medicins packed in Glass Ampoules & Tubular Vials which are supplied by the Dealer in the financial year 2007-08. Now the dealer is claiming the sale of said Glass Ampoules & Tubular Vials as penaltimate sales u/s 5(3) of the CST Act,1956. Accordingly the Dealer has obtained Certificate from the Buyer in Form H as prescribed u/r 12(10) of CST Rules along with proof of export.

But the Assessing Officer has denied the said claim rellying on Notification No CST 2002/CR-30-A/Taxation-2 Dt 01.05.2002. and asking Form C instead of Form H alongwith prescribed certificate in the said notification.

Please clear the legality of the notification.

AI Summary

Dealer Challenges Rejection of Penultimate Sales Claim Under Section 5(3) of CST Act Citing Supreme Court Ruling A dealer in Maharashtra, who manufactures glass ampoules and tubular vials, sold these to a pharmaceutical company that exported medicines in the financial year 2007-08. The dealer claims these sales as penultimate sales under Section 5(3) of the CST Act, 1956, supported by a Form H certificate from the buyer and export proof. However, the Assessing Officer rejected this claim, citing a 2002 notification requiring Form C and a specific certificate. A reply references a relevant Supreme Court judgment, State of Karnataka v. Azad Coach Builders (P) Ltd., to address the legality of the notification.