set of on branch trasfer

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nilesh kshirsagar (Querist)
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08 July 2009 Hi, Dear all
can any one share his knowladgein respect of following matter

My clints is a private ltd co Ho at Nagpur and open a new branch at nasik during 2005-06 and trasfer plant & achinery on excise Invoice without vat as branch trasfer and also sale certain raw material and final product on tax invoices imposing vat, Vat is imposed because branch again sold that material to to HO'S Pre determined buyer AT NASIK
( new branch has taken separate excise ,service tax and vat no ) because there is judgement of SC that if buyer is pre determined then trasfer to branch is treated as sale.

Now Sales tax Officer audit has dis allowed that Vat saying that trasfer to branch is not sale and therefor there is no question of imposing vat on such trasfer
is ther is any case law similar to this Case in VAT (there are no of case laws in cst) but the officer demanding Vat or BSt case law

Sanjeev Kumar

Sanjeev Kumar (Expert)
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09 July 2009 Dear Sir, my understanidng: HO at Nagpur transfer materials at Branch office,Nasik. NOW, VAT is a state level tax and in this case both location in Maharashtra. hence no need to obtained VAT NO. in Nasik. you can transfer goods thru challan BUT in this case ultimate customer is indetified before dispatch the goods from Nagpur to Nasik, hence it is a sale from Nagpur itself. in both the cases, because, location is in Maharahstra there is no question of litigation but if there is transfer in less value and further sold out in excess value than before Octroi AO you face the litigation. this fact base case..