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

This query is : Resolved

Rahul Jain (Querist)
Follow

13 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 from A fall under Sec 3(a) or Sec 3(b) purchase?

VASANTH D JAGANATH

VASANTH D JAGANATH (Expert)
Follow

24 July 2013 first sale i.e., first movement of goods should fall under section 3(a), thereafter if any subsequent sale by transfer of document of title fall under section 3(b), therefore movement of goods from A to B fall under section 3(a) of the cst act, further the movement of goods from B to C fall under 3(b) if sale is effected by transfer of document of title