Dear SS Narayana
The correct sequence of events will be as follows
1. B receives invoice from A, and issues "C" Form to A
2. A issues E1 Form to B
4. B issues invoice to C mentioning the same LR/RR Number.
3. B receives "C" Form and payment from C
The correct documentation and procedure will be as follows
1. A hands over the goods to Transporter who issues LR in the name of B with destination as C (AP)
2. During the period of transit B endorses the LR in the name of C.
3. Based on the Endorsed Copy of the LR, C takes delivery of the material for his use.
Please note that all invoices raised for the transaction by A and B should mention the same LR/RR Number and date. The material should not be sent on "Door Delivery" basis.
B should not show the value of CST separately in its invoice on C.
The quantity at the begining and end of the transaction should remain the same.