Cst sales (e1 transaction)

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Thamotharan S (Querist)

25 January 2013 Dear Sir,

I have a doubt about E1 Transaction...

"A" is in banglore-karnataka who sells the goods to "B in chennai-Tamilnadu....

The goods and the title are transferred (Endorsed) by "B" directly to "C" in coimbatore-Tamilnadu on the movement of goods...

Is this E1 transaction under CST ?
(or) How to treat it?

Please advice me...

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

25 January 2013 Yes. your transaction is can be called as E-1 transactions. please refer the below case law

M/s. State of Gujarat vs. Haridas Mulji Thakker (84 STC 317)(Guj).
In this case the facts are that the Gujarat dealer received order from another dealer in Gujarat. For supplying the said goods, the vendor dealer in Gujarat placed order on Maharashtra dealer and instructed to send the goods directly to the Gujarat purchasing party. Gujarat High Court held that the sale by Maharashtra dealer to Gujarat vendor dealer is first interstate sale and the one by Gujarat vendor dealer to Gujarat purchasing dealer is second interstate sale. Gujarat High Court also held that the second interstate sale is exempt u/s. 6(2) being effected by transfer of documents of title to goods. In this case though there was no physical transfer of L.R. etc. Gujarat High Court held that there is constructive transfer by instruction and hence duly covered by section 6(2). This judgment duly covers both issues, that there is no need for physical transfer and also that having predetermined parties does not affect the claim.

Thamotharan S

Thamotharan S (Querist)

01 February 2013 Thank you Sir...
as above that, the Gujrat purchasing dealer has purchased from Gujrat Vendor dealer is also Inter state sale, then which Forms applicable...

Form E1 from MP to GJ(vendor)
Form C from Gj(ven.)to MP
Form C from Gj(purchser) to Gj vendor
is this transactions(forms)correct..?

My question is, How the gujrat purchasing dealer can issue Form "C" to gujrat vendor dealer (within state)...?

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