Indirect taxes - branch transfers to avoid CST

I have a Q on indirect taxes - Central sales tax, 1956. It goes as follows:-
Stock transfer envisages transfer of products which are sold off the shelf. In case the purchaser is already identified even before the movement starts to the other state, then it will tantamount as a inter-state sale and not branch transfer. This will be actually a phony transfer just to put off CST liability.

All I want to ask in this regard is:-
1. In case it is a branch transfer, VAT liability still exists. The buyer though can very well claim ITC of the tax subject to the state VAT laws. But he will have to pay at least the minimum VAT which is 5% almost everywhere.
2. If it is not a branch transfer and CST is getting applicable, then he has the option to make a purchase at the lowest rate of 2% but only for the purpose of manufacture/ resale/repacking/in telecom-mining-electricity, and then ITC won't be available. He will also have to furnish C form to the seller (which doesn't have any financial implication).


So what is purpose of avoiding CST? Is the evasion beneficial to the purchaser for his ITC? Is it the only reason? If yes, then he will have to make the calculations to work out the net outflow in both the cases. Have I been able to take everything into account? Come on sharp minds, help me out and remove my doubt.
Thanks!!