E-1 Sale (Transit Sale)

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Prasen Ganguly

Service

21 Points Posted on 16 March 2009

My company has applied for the sales tax registration no., and may be within a week will recd the same. The product deals is having excise duty. So excise registration not yet done, after getting sales tax regd. excise regd will be done.

Now I have a supplier located at Raigarh (Chhattisgarh) and Buyer at Raipur (Chhattisgarh). Wants to do transit sale, that is the supplier will send material directly to the buyer on behalf me. Can I do it? Please inform. Also note the material is having excise duty.

Buyer will provide me 'C' Form, I will provide the supplier 'C' Form and Supplier will provide me 'E1' Form. Is it? Kindly suggest.

Will I show the amount of excise duty and CST on the commercial invoice raised to my buyer?

Replies (2)

Umesh V Naig

Statutory Analyst

387 Points Posted on 22 March 2009

Excise duty will be chargeble only after taking registration which allows the party to transaction can take cenvat credit, how ever E 1 is independent of your Cenvat bill. But credit cannot be taken . Your other party can take if he has got the Excise regn no and the material can be moved directly to his a/c , LR endorsement in transit

Syed Altaf Husain

Consultant

22 Points Posted on 23 March 2009

For a E 1 transaction to be complete there has to be interstate movement of goods, in this case movement of goods is originating in Raigarh and terminating in Raipur both the placesare in Chattisgarh. Hence the transaction does not satisfy the conditions of E 1 sales as required u/s 6(2) of the CST Act, 1956. The said transaction is not one of inra state sales and not inter state sales.