E1 sales or not ?

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Anandh. S (Querist)
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04 October 2011 A-Chennai purchases goods from B-Coimbatore and instructs B-Coimbatore to deliver goods directly to C-Mumbai.

A-Chennai issues invoice to C-Mumbai, claiming it as exempt u/s 6 (2) of CST Act.

A, B and C are registered dealers.

Is this an E1 Transaction? If not, what is the correct procedure?

U S Sharma

U S Sharma (Expert)
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05 October 2011 for E-1 ............transport document must be endorsed in favor of C by A after delivery of goods by B to transporter and B as consignee.

in a nutshell no E 1 sale can take place prior to despatch of goods

Amit Bajaj

Amit Bajaj (Expert)
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05 October 2011 The first sale in E1 transaction must be an interstate sale that is the first and foremost requirement. Since coimbatore and chennai are in same state of Tamilnadu, there cant be any subsequent interstate in-transit sales and no consequent exemption u/s 6(2) will be available. For understanding the subject more can refer to the article at below link:

http://blog.amitbajajadvocate.com/2010/12/understanding-e1-and-e2-sales-under-cst.html

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