Sale in transit

Hello,

Please advise which of these is allowed and which forms are to be issued in each of the cases, if they are permissible -

Case 1:
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A company has 2 branches A and B in StateA and StateB respectively. Supplier C is in StateC.

A purchases goods from C and effects 'sale in transit' to B.


Case 2:
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A company has 2 branches A and B in StateA and StateB respectively. Supplier C is in StateB.

A purchases goods from C (in StateB) and effects 'sale in transit' to B.


Reasons to do this -

1. Goods actually travel from C to A through StateB
2. Turnover needs to be booked by A and the main market is in StateB
3. C is a manufacturer / dealer registered excise dealer and passing MODVAT credit. Also, B is a registered excise dealer. All A, B & C have a valid TIN / CST number.

Thanks.