Whether form-c are based on consignee address or usage point

Physical movment and delivery of goods is important for deciding whehter it is interstate or intrastate transation. Movement and delivery is between consignor and consignee. Post delivery what consignee does with the goods is irrelevant.

Regards

Dayananda

Thank you for your prompt response. 

I am also of the same view expressed by you. 

In the instant case, there is physical movement of goods between consignor and consignee.

 The problem here is consignee makes all transaction (Purchase / payment ) at state of Pondicherry , but uses the goods in State of Tamil Nadu  from which the products have been sold. There are lot of interpretations in my organisation that we should see only the usage point and not consignee address. My worry is whether sales tax department will interfere in the matter or not?.

However, we transport the material for use from state of pondicherry to Tamil nadu through internal gate pass issued by my organisation which is sheerly meant for internal use only.

Point of delivery is important. If It is delviery at pondicherry and subsequestly moved by buyer to tamilnadu than it is interstate transaction. If It is delivered at tamilnadu and billed as pondicherry than we need to check (There are judgment stating movement and delviery of goods will decided the transation as CST or VAT). But even in that case if the sale is not against C form it should not have impact as far as payment taxes except for change in head. As in case of non c form trasaction rate applicable is local vat rate and also set of input credit against payment of CST is available.

Regards

Dayananda