We are dealer dealing in Maharashtra & registered under MVAT Act. We have to apply for duplicate Form H with Sales Tax Dept. What is the current and exact procedure for such application and for getting duplicate Form H or where i can get such information.
Section 5 of the Central Sales Tax Act, 1956 was amended with effect from 1st April 1976 by adding a new sub-section (3) to section 5 of the Central Sales Tax Act, 1956 [C.S.T.Act]. The new sub-section 5(3) reads as follows :
“Notwithstanding anything contained in sub-section (1), the last sale or purchase of any goods preceding the sale or purchase occasioning the export of those goods out of the territory of India shall also be deemed to be in the course of such export, if such last sale or purchase took place after, and was for the purpose of complying with, the agreement or order for or in relation to such export.”
2. The Central Government had also amended the Central Sales Tax [Turnover and Registration] Rules and had, in 1977, introduced a new Form, namely Form-H under these Rules. Rule 12 (10) of the said Rules was also amended. The amended rules stated that, “ A dealer may, in support of his claim that he is not liable to pay tax under this Act in respect of any goods on the ground that the sale of such goods is a sale in the course of export of those goods out of the territory of India within the meaning of the sub-section (3) of section 5, furnish to the prescribed authority a certificate in Form-H duly filled and signed by the exporter along with the evidence of export of such goods”.
3. The sub-section 5(3) refers to what are commonly called as ‘back-to-back exports’. The sub-section provides that in case of a back-to-back export, both the actual final export as well as the sale immediately preceeding such export will be deemed to be in the course of export. Thus, even the penultimate sale is a sale in the course of export if it fulfills the conditions laid down in the said sub-section. The Form-H which had been provided in the rules was merely an enabling mechanism whereby dealers can present in a systematic manner the details of the proof in support of their claim. However, the Form was not mandatory.
4. As stated earlier, such penultimate sales are also in the course of export and were accordingly covered by Section 75 of the Bombay Sales Tax Act, 1959 [BST Act]. There was a common apprehension that Form-H could be used only in case of an inter-State penultimate sale and may not be applicable if both the seller and the purchaser were based in the same State. After considering the problems of the dealers, the State Government had introduced another Form, namely Form N-14B under Rule 21 of the Bombay Sales Tax Rules. This Form was a replica of the Form-H prescribed under the CST Act. The transactions represented by Form N-14B remained transactions under Section 75 of the B.S.T.Act, 1959.
5. Value Added Taxation (VAT) system has replaced the traditional sales tax system with effect from 1st April. Under the Maharashtra VAT Act, there is no provision for purchase against any kind of declaration. Consequently, Form N-14B has also been abolished. The section 5 of the C.S.T.Act has been further amended by the Finance Act, 2005 of the Union Government. A new sub-section, namely sub-section 5(4) has been introduced in the C.S.T.Act, 1956. The new sub-section 5(4) is now a part of the C.S.T.Act, 1956. It provides that the provisions of sub-section 5(3) shall not apply to any transactions unless the dealer selling the goods furnishes the prescribed declaration to the prescribed authority. In other words, in order to make a claim under section 5(3) of the C.S.T.Act, Form-H has become mandatory with the passing of the Finance Bill 2005.
6(1) Queries have been received from members of the trade as to which declaration should be used in place of Form N-14(B). It is now clarified that with the passing of the Finance Bill 2005, Form-H has become mandatory. It will, therefore, have to be used for all transactions for which Form N-14(B) was earlier being used. For administrative convenience, these instructions are made effective from 1st April 2005. In other words, Form-H should be procured in support of any claim regarding sales under section 5(3) in respect of all transactions including intra-State transactions which take place on or after the 1st April 2005.
6(2) However, all such turnovers covered by Form-H, whether inter-State or intra-State must be shown in the CST Return and not in the state VAT return.
7. This circular cannot be made use of for legal interpretation of provisions of law, as it is clarificatory in nature. If any member of the trade has any doubt, he may refer the matter to this office for further clarification.
8. You are requested to bring the contents of this circular to the notice of all the members of your association.
Yours faithfully,
(B.C.KHATUA.)
Commissioner of Sales Tax
Maharashtra State, Mumbai.
No.VAT-2005/Act/VD-1 Mumbai Dt :30th May 2005
Trade Cir.- 11 T of 2005
Copy forwarded To :
1. a. All the Addl. Commissioners of Sales Tax in the State.
b. All the Joint Commissioner of Sales Tax in the State.
c. All the Sr.Dy. Commissioners of Sales Tax in the State.
d. All the Dy.Commissioner of Sales Tax in the State.
e. All the Asstt.Commissioners of Sales Tax in the State.
2.Copy forwarded with compliments for information to:
a. The Deputy Secretary, Finance Department, Mantralaya, Mumbai.
b. The Under Secretary, Finance Department, Mantralaya, Mumbai.
c. The Accounts Officer, Sales Tax Revenue Audit, Mumbai and Nagpur.
3.Copy to all the Desks and Desk Officers in the office of the Commissioner of Sales Tax,Maharashtra State, Mumbai.
CAclubindia
