20 May 2011
I submit the following query with reference to a sales transactions with a request to enlighten me with supportive case laws if any whether the transaction is in the nature of local sales or interstate sales?
A manufacturer of cable wires in Tamil nadu get order from BSNL H.O. at Chennai(also in T.N) for supply of cables to various sites BSNL in other States and the dealer is also supplying the cables directly to other state BSNL sites. The agreement, payment are made by the BSNL Chennai.Treating the above transaction as CST Sales the dealer charge 2% and get C Forms supplied by the BSNL Chennai? I request your valuable advise whether the above transaction is local sales or CST sales as claimed by the dealer?