Sale in transit u/s 6(2) of cst act

Querist : Anonymous (Querist) 07 October 2011 This query is : Resolved
In case of sale in transit the final purchaser requests to deliver goods for job work to 4th party in the same state of despatching party. Subsequently after job work goods are despatched by said party to the final purchaser in different state.

Pls adv if this transaction can be covered as sale in transit or not. Tks

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Raj Kumar Makkad (Expert) 07 October 2011
As raw material has been changed into finished goods, such transaction cannot be regarded as sale in transit.

Sanjay Kumar (Expert) 11 October 2011
It can not be covered as a sale in Transit u/s 6(2), because under sale in transit, the ownership of goods changes, not the identity of product.

R K JAIN (Expert) 12 October 2011
The goods must move out of the state for claiming the exemption of sale undr CST Act to make the sale in transit. In this case the goods are not moving out of state but remaining in the same state at the time of completion of transaction of sale. So this trancation can not be claimed as sale in transit. There must be inter state movement of goods at the time of sale to claim the sale in transit.

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