C from against eot cranes purchases

This query is : Resolved

periasamy (Querist)
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13 September 2013 We are manufacturing Boiler. For moving heavy structures we have planned to purchase EOT cranes and installed into the factory. If the cranes are purchased interstate against C From the tax will be @2% or otherwise it is 14.50%. Kindly inform whether we are eligible for CST purchase. If there is case laws available for supporting the issue kindly forward the same.

RENGARAJ R.K

RENGARAJ R.K (Expert)
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14 September 2013 Yes, 2% is applicable for interstate purchase against c form. But such goods/machineries should be used only for the following purpose viz.,
1) resale
2) processing, manufacturing
3) packing
4) mining/power distribution
5) telecommunications....

Cranes are ofcourse machineries but the purpose of cranes are not within the above norms.

Some relation should be there for the machineries in connection with production, packing etc.,

reference of case law is not readily available.