Waybill ap - 6(2) sale/ sale in transit/ e1 e2 sale - cst - Taxation

V.Devananda Narasimham (Advocate) 09 February 2012

Mr. Vaurn,

As per Sec.3(b) read with Sec.6(2) provides for Interstate sale by transfer of documents of titile to goods during the movement from one State to another. The document of title generally called like Lorry Receipt, Railway Receipt, bill of lading and Air way bill. During the course of interstate movement of goods, such document of title can be endorsed to another dealerat any time before taking delivery of goods from the carrier. So in order to clear the mattter it is stated that endoresment can be done on document of title any time after the goods are handed over to carrier but before physical delivery is taken at destination from the transporter.

In your case Company A in MP is delivering the goods to carrier in M.P and obtains lorry receipt / Railway receipt or such document of title raising its invoice to Company B after collecting 2% CST along with E-1 form. Company B endorse the document of title affixing its seal and signature without unloading the goods from the carrier and issue invoice not collecting CST to Company C at AP. The company C would issue C form to B and in trun B would issue its C form to A .In order to claim exemption B would submit C form recived from company C and E-1 form obtained from A before its assissing authority. This is the procedure to be followed while conducting sale in transit under CST Act, 1956. Since the issues stated in exemple are not clear, I declained to answer the same.

Devananda Narasimham.

dharmendra Singh (Account officer) 13 April 2012

Sir, thanks for the above information, but I want to clarify the matter as under.

(A is not registered in excise) who is in Gurgaon (H.R) purchase goods from (B Excise registered) who is also in (H.R) & sale to (C Excise registered) who is in U.P & want to transfer the Excise modvat benefit from B to C. can it possible ? if yes then what is way of taxation VAT / C.S.T.

Dharmendra Singh

Mobile - 9911659168

singhdk_44@yahoo.com

Md Anamul Haque (Dy manager) 18 April 2012

Yes, ED would be passed on to C .

Regrding E1 sale , E1 sale is against C form but since in this A & B both are in H.R ,so the first sale will not be an interstate sale ,so E 1 can not be issued to A .

A Haque