Can c forms be issued ?

I am auditing a 5 star hotel in Pondicherry. The hotel has been registered under CST Act under 'Hotel & Restaurant. They had issued tenders for the construction of the hotel like electricals, air conditioning, kitchen equipments etc.
All the contractors are from chennai and they supply items and carry out installation at Pondy. All the contractors have been charging 12.5% VAT even though the hotel has been registered under CST Act under Hotel & Restaurant.
My question is whether C forms can be issued for the purchase of kitchen equipments, Electrical fittings and Air conditioning ?

Thanks in Advance