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Not possbile for Karnatak party to give E Sugam no. then

pritam (M D) (26 Points)

14 August 2010

I had supplied STEEL material to Fabrication unit. Buyer Party is from Mudhol which is registered under TIN & consignee party from Hubali is not registered under TIN. I had charged CST @ 4 % in Invoice as Party is not able to submit either C form Or E SUGAM number. as I had charged CST @ 4 % that is as good as unregisterd dealer. Now CheckPost Officer is not allowing to Pass from Checkpost in abscence of E sugam number. Also It is not possible for party to submit E sugam number as Hubli unit is not registered. Also Check Post Officers are not allowing Vehicle to Go back to original destination in case cancellation of order to avoid Conflict & confusion. What should I do as Vehicle is blocked on checkpost & officers are not giving any clarification

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Ravi Prasad (Self employed) (148 Points)
Replied 03 September 2010

Section 22(6) of the KVAT Act states that every dealer who obtains or brings taxable goods from outside the State, whether as a result of purchase or otherwise, shall be liable to be registered after such first purchase or procurement irrespective of the value of goods purchased or procured. It is not clear as to whether the consignment is the first consignment. If it is not the first consignment then, the your dealer must be registered and has committed an offence of non-registration. If it is the first consignment then apply for registration immediately and obtain the e-sugam user name and password and enter the same. Every local branch of the Non-resident dealer also must obtain registration. Hence your Hubli branch being the consignor, he must have obtained registration.