Higher CST without C Forms upheld

The Madras High Court has upheld the levy of Central Sales Tax (CST) at 14.5% on interstate sales effected without furnishing C-Forms. 

The Court held that moulds and dies cannot be treated as "capital goods" under the Tamil Nadu Value Added Tax Act (TNVAT Act) merely because they fall within the statutory definition. 

They must also satisfy the mandatory condition of being used within the State for manufacture or processing, failing which the residuary entry would govern the applicable tax rate.