Indirect taxes - branch transfers to avoid CST - VAT

I have a Q on indirect taxes - Central sales tax, 1956. It goes as follows:-
Stock transfer envisages transfer of products which are sold off the shelf. In case the purchaser is already identified even before the movement starts to the other state, then it will tantamount as a inter-state sale and not branch transfer. This will be actually a phony transfer just to put off CST liability.

All I want to ask in this regard is:-
1. In case it is a branch transfer, VAT liability still exists. The buyer though can very well claim ITC of the tax subject to the state VAT laws. But he will have to pay at least the minimum VAT which is 5% almost everywhere.
2. If it is not a branch transfer and CST is getting applicable, then he has the option to make a purchase at the lowest rate of 2% but only for the purpose of manufacture/ resale/repacking/in telecom-mining-electricity, and then ITC won't be available. He will also have to furnish C form to the seller (which doesn't have any financial implication).

So what is purpose of avoiding CST? Is the evasion beneficial to the purchaser for his ITC? Is it the only reason? If yes, then he will have to make the calculations to work out the net outflow in both the cases. Have I been able to take everything into account? Come on sharp minds, help me out and remove my doubt.
Thanks!!

U have taken eveythin right in calculation.. Now for other readers let me explain wat u said with an Ex

Let us assume I have Head office in Mumbai and a Branch in Chennai..

A customer has asked me in Chennai, product which i am selling for Rs 1 lac.

I dont hold the stock at chennai office and so i have order it to my HO.

Now since the purchaser is known in advance, the transfer by Ho to Chennai will be deemed to be CST.

So on 1 lac Rs, the purchaser has to pay 2000 Rs(2%) and he cannot claim this amount as ITC, as well he has to get C form or else he will be taxed at the Highest Rate applicable ie 12.5%. apart from it have to maintain C form Register, have to pay Bribe of around 1000Rs for getting C form, have to go around 5 times to sales tax office.

Instead of tat, if the goods are first trnsfd to Branch(when purchaser is not known) and then if u sell it will amount to sales within the State. Hence tax at 4%(assumin tat state rate), so 4000 Rs. But he wil get this as an ITC when he makes the sales, apart from it all his time saved in getting C form, payin Bribe etc etc..

The amount which i have said Rs 1lac, is just a small amt. Transactions of Rs 1 Cr takes place at one shot and so 2% CST i.e. 2 lacs one is able to save, if routed through Branch.

So this is the oly reason as pointed by u i would say. SAVING of tax.