St point goods was enhanced, the trade felt that it would result in double taxation as the tax would be on inputs as well as on the finished goods. Similarly the Delhi based exporter will not be competitive in the export market in case he is made liable to pay tax on his purchases. Keeping these factors in view, a provision was made to allow tax free sale of Sit point goods by a first importer or a manufacturer to a registered dealer who requires the goods for the purpose of manufacture, export, inter state sales on for packing of goods on the strength of a prescribed declaration Form ST-35. Q14. Goods purchase against ST-35 forms by an authorized dealer is not allowed to resale the goods further on forms. Withdrawal of ST-35 implies stoppage of any trading on the strength of forms.
Tax has to be collected by the first point seller.