E 1 sales

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S.Jegadeesan (Querist)
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15 October 2012 Dear Sir,
Pl clarify the following

If Mr. A from Mumbai sells the goods to B in Chennai. Now during the movement of goods B endorse the LR & ask to deliver the same to C's Job site situated at Kerala(But C's Registered office & place of business is Chennai). In this
situation whether B can claim the exemption U/s 6(2) on sale to C ?
Reagrds,
S.Jegadeesan

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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16 October 2012 Mr Jagdheeshan,
B can sell the goods bought from A to C by endorsing the LR and issuing another invoice. This is an E1 sale. If it is to be delivered to the job site of C in Kerala it can not be done by endorsing the LR by B. C has to issue his own delivery note showing it as a stock transfer for job work and get it back or whatever he does. This is because C is registered at Chennai and B has to issue his invoice to that address. Delivery and sale address have to be same. If these two differ checkpost people will create problems...MJK.

S.Jegadeesan

S.Jegadeesan (Querist)
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17 October 2012 Dear Sir,
Thank you so much for your reply. By meantime could you please clarify the following

1.Is it possible to issue the C form by the buyer to the seller when both of them belong to the same state under E 1 sale?

Because in my query B & C having the office adddress in Chennai only.
Now I think as per the Act,
A(Mumbai) has to issue E1 to B
B(Chennai) has to issue C form to A
C(Chennai) has to Issue C form to B.

Please confirm whether is it possible under E 1 Sale?
Regards,
S.Jegadeesan

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