C Form Issue Contravention

[Pravinkumar Mundada]

My one of the client (Maharashtra) has purchased Windmill from Tamilnadu, Wind mill has established in Tamilnadu & bill is received in maharashtra. Maharashtra Dealer has given C Form but goods are not received in Maharashtra. According to definition there is given that - goods transfer from one state to another state, but in this case not happened same. 

My Querry is

1. Whether C Form given is contravention the provision of law ? If so then what to do ?

[YAGAY and SUN]

This is bill to ship to Transaction.  The contract (PO) occassions the movement of goods. In this case, since goods have not been moved out of the Tamilnadu State, therefore, VAT/CST authorities may not accept the Form C in this transaction.

 

 

AI Summary

C Form validity questioned when goods do not leave the supplier's state; tax authorities may reject the form.
Because the goods were not moved out of the supplying State, the issuance of the C Form is inconsistent with the factual predicate for interstate sale; VAT/CST authorities may not accept the C Form in such transactions.