Dear Mr. Brajesh Sir,
My view is in accordance with Mr.O.P.Agarawalla Sir, that, even in case of pre-existing contract or order also sale can be made under section 6(2) of the CST Act. Following case may help in this situations
A] Commissioner of Commercial Taxes, Bihar, Patna Vs The State Trading Corporation of India Limited (1972) 30 STC 451. Facts of the case: STC regisistered dealer in bihar entered into a contract with HSL for supply of iron ore at different places situated outside the state of bihar. In pursuance of the contract STC entered into a contract with mine owners in bihar and order him to delivery the goods to outisde the states as agreed with HSL. The court has held that, there was first interstae sale between mine onwers to STC the second sale from STC to HSL fall under the category of section 6(2).
Following case relating to transfer of document of title and endorsement relating to E-1 sales in the case of
B] State of Gujarath Vs Haridas Mulji Thakker (1992) 84 STC 317, wherein the Hon'ble court has held that, for transfer of document of title actual endorsement in writing by the purchasing dealer is not required. The gist of the case is as under
[1992] 084 STC 0317- - State of Gujarat Vs. Haridas Mulji Thakker
Inter-State sale or local sale — Purchasers in Gujarat placing orders with dealer — Dealer placing orders with supplier in Bombay — Dealer instructing Bombay supplier to consign specified goods directly to purchasers f.o.r. Bombay — Purchasers in Gujarat taking delivery and paying freight — Two sales — One by supplier to dealer, another by dealer to purchasers — Constructive delivery by Bombay supplier in favour of dealer — Bombay supplier thereafter acted as agent of dealer — Property in goods transferred to purchasers upon issue of transport receipts in their favour — Second sale by dealer was inter-State sale by transfer of documents of title to goods while goods in transit — Central Sales Tax Act (74 of 1956), Sec. 3(b).
However to avail exemption from tax under section 6(2) is subject to production of E-1 form from supplier and Form-C from purchaser.
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