Transit sale u/s 6(2) of cst

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 October 2014
PLEASE GUIDE US BELOW REFERRED SALE IS SALE U/S 6(2) OR NOT :

1. Registered Dealer :”A” from having office in Delhi and Bhopal also
Registered Dealer Purchased goods on 01.04.13 material from delhi Against Form C in delhi ( Used his Bhopal TIN) and sold the same to Registered Dealer “B” in Bhopal by using Bhopals TIN on 02.04.13.( This Transaction can fall in E1 + C Sale ?)(material sold without charging CST on Subsequent sale)

2. Registered Dealer X have Bhopals(M.P.) TIN he purchased Water Pump(Material) from Surats ( Gujrats dealer) in April 13, may 13 and Aug 13 then he sold All pumps to Dealer Y, Jabalpur(M.P.) on Oct 13 ( all material has been direct deliver to party )( Dealer X bill all water pumps to Dealer Y in single invoice without charging CST in bills)

3. Dealer Ram from Mumbai got a Sales order from Mr. Rahim from Harda (M.P.) for machine selling in harda. Then Ram Purchase machine from Dealer Shyam from Jaipur. He supplied parts of machine in various instalment by charging CST in each bill.all parts has directly been deliver to harda then Mr. Ram Assemble the machine in harda and sold to Mr. Rahim by raising bill to him without charging CST on bill.

PLEASE GIVE YOUR VALUABLE OPINIONS

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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30 October 2014 Out of the three types of sales mentioned above,the one given in Sl No (!)is a sale in transit.The sale of Sl No.(2) is not acceptable,because,any sale transaction has to be continued in the same form and combining or splitting of any of them is not allowed,although direct delivery is made. This also creates problem in issuing statutory forms. The sale of type (3) is not allowed as delivery of goods was made and changed into a commercially different product(i.e.from parts into a full machine).The transactions is also broken to do the assembling work,and hence,its continuity,which is essential nature of sale in transit is breached......mjk