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For issuance of c-form- consignee address or usage point

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This query is : Resolved

A SOMASUNDARAM (Querist)

21 August 2012 If Company "A" which is situated at State of Tamil Nadu is selling a product to Company "B" which is siutated at State of Pondicherry and if company "B" uses the product in State of Tamil Nadu, can we issue C-Form considering that there is inter state sale transaction. My point is whether one has to see the consigee address or usage point in case of issuance of C-Form when sale transaction is taking place between two states.
A.Somasundaram

RENGARAJ R.K

RENGARAJ R.K (Expert)

21 August 2012 The legal term "situs of sale" is very much important to decide the interstate sale.So,
"a sale, being by definition, transfer of property, becomes taxable under Section 3(a)of CST Act if the movement of goods from one State to another is under a covenant or incident of the contract of sale and the property in the goods passes to the purchaser otherwise than by transfer of documents of title when the goods are in movement from one State to other. In respect of an inter-State sale, the tax is leviable only once and that indicates that two clauses of Section 3 are mutually exclusive.

Therefore c form can be issued if only the goods move physically from one state to another state. Delivery point is to be considered.

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