Sec 3(a) or sec 3(b) purchase under cst act

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Rahul Jain (Querist)
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12 July 2013 In case of E-1 sale, a manufacturer A sells goods to a Trader B, who in turn sells goods while in transit to his customer C.(All three parties are in 3 different states)

Will this purchase by B be Sec 3(a) or Sec 3(b) purchase?

CA Vibhash Kumar Sah

CA Vibhash Kumar Sah (Expert)
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12 July 2013 U/S 6(2) which provides for exemption of EI sales, the first sale may be under clause (a) or (b) of section 3. So u analyse under which clause it falls.