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

[Guest]

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.

[YAGAY andSUN]

Following judgment is relevant in your matter:-

State of Karnataka v. Azad Coah Builders (P) Ltd. (2010 (9) TMI 879 - SUPREME COURT OF INDIA)= (2010 - TIOL -70-SC-CST-CB)

AI Summary

Penultimate sale under CST Act: dispute over admissible export documentation affecting tax exemption entitlement for sellers. Whether the manufacturer's supplies of glass ampoules and tubular vials to a buyer who exported medicines qualify as penultimate sales under the CST Act, where the dealer produced Form H and export proofs but the assessing officer relied on a departmental notification requiring a different certificate and sought Form C instead, raising a dispute on the notification's legality.