Applicability of cst

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

28 December 2012 Dear All

I have query, I recd a order from one of our customer, The value of order is 80 Lakhs whereas the customer is supplying the foc material of Rs. 70 Lakhs. The Foc material supplied by the customer will be consumed in final product as an essential part of the final product. Now I am the impression of below:
1. Excise Duty : As per excise duty, cost of such Foc will be apportioned in final product, and ed will be attract on 150 Lakhs (80+70)as per excise valuation.

2. CST : As per CST point of view, CST would to be charged on 80 Lakhs because the cost 70 lakhs is the property of customer and does not form the part of sale/trasansaction value. Customer will pay only 80 lakhs+taxes if any

Please guide me completely, wheather I am worng or right here.

CS, Deepak Pratap Singh

CS, Deepak Pratap Singh (Expert)
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28 December 2012 Dear Friend, Since total value for Excise Duty is Rs.150 Lakhs then CST will be applicable on Rs. 150Lakhs + ED according to the rules of valuation. You have to pay CST on Rs.150 Lakhs + ED. Thanks