Transit Sale in Central Excise:
Transit sale procedure has been explained in CBEC circular 96/7/95 dated 13.02.1995. The circular clearly says that when the whole consignment is dispatched to a buyer, cenvat will be available on manufacturer invoice to the final buyer shown in the invoice as consignee. The invoice shall be issued in the name of buyer (trader in this case). Goods need not be brought to the traders place and traders invoice is not required for availing cenvat.
In circular 218/52/96 dated 4.6.1996, it was further clarified that the intermediate trader is not even required to be registered as dealer of central excise. The view has been upheld in various judgments notably in stadmed [1998 (102) ELT 466], Curies [1999 (112) ELT 539]. In fact pune commissionerate trade notice 76/95 dated 20.7.1995 specifically prohibits issuance of cenvatable invoice in such cases as the trader is not receiving the goods. Off course, the intermediate trader can issue commercial invoice to the final buyer for payment/accounts purposes.
Receipt of goods is extremely important in Central Excise. Sale/purchase has been defined in Central Excise [Section 2(h) of the Central Excise Act] as transfer of possession of goods. In the present case the intermediate dealer is never receiving the goods, never getting the possession and hence in the eyes of Central Excise Law, not a buyer or seller of goods.
These points has been examined in one of my papers published in Excise Law Times, "Who is a first stage dealer" [2005 (186) ELT A55]. If possible, look into the paper, it may be helpful.