Concessional sales tax form C for safety related items purch

This query is : Resolved

U.C.AVADHANI

U.C.AVADHANI (Querist)
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15 September 2008 We have been buying Personal Protective Equipment (PPE) and other safety related items like fire extinguishers, safety shoes, spectacles, tyre protection chasis etc.against concessional sales tax of 2% for use in the plant. Please inform whether we can issue form C for the purchases or shall we have to pay the differential tax to the vendors.

Taxguy

Taxguy (Expert)
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15 September 2008 If it is an interstate sale, then you can issue C form, why is this doubt and any specific against such use of C form.

U.C.AVADHANI

U.C.AVADHANI (Querist)
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15 September 2008 The department has disallowed in the earlier years and raised demand stating that we have misused the C forms. The department's argument is that the safety related items are not directly/indirectly connected to production activities. If possible, some relevant cases/sections may be quoted.

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