Not my fault- web problem. Let me do again.
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.

Dear Rajesh Sir,

A lot of things have been clarified by your advice but I am not able refer to your article in 2005(186) ELT A55 as 2005 volume of ELT is missing from our office. Do you have any soft copy (or scaned copy) of the same and can send it to me as attatchment here ?

Thanks and Regards

Attaching a soft copy of the paper.

Dear Rajesh Sir,

Things are very much clear from your paper. that means it would not be right for C to send his invoice to transporter in Pondichery and dispatch the goods to kerela ( as Mr Harinder had suggested) ..? 

Regards 

The manufacturer's invoice must accompany goods. The ultimate customer must take credit on this manufacturer's invoice. Dealer shoud not issue cenvatable invoice.

There is no prohibition if the intermediate dealer send a commercial invoice along with goods.

Hi, I have branch office in Ghaziabad(Y) in UP and I am purchasing goods from Delhi (X) for a local client  in Ghaziabad (Z). the goods are directly received by my client can you please advise me on a) what are tax part required b) I am giving invoice from my company so I would not want them to know the actual price of my supplier. it would be really helpful if you could advise me on the same. thank you

Dear Sir,

Pls can i know the proceadure how a sale in transit transaction can be made and how to raise the invoice's in format  in which state this tranction to be claimed in sales tax

i would like to know the top to bottom of the transaction with clear and easy examples

Dear Savanath

Sale in Transit is a type of inter state sale transaction to encourage the traders. In this type of transaction, the first buyer pays the CST when it purchase the material from manufacture. After that any inter state sale transaction by title transfers to other traders does not attract any tax/duties during the time the material is not delivered by the carrier to the final consignee.

If you consider a supply chain i.e 

A(Manufacture)------->B (Dealer 1)----> C (Dealer 2)------> D (Dealer 3)-----> E (Purchaser)

When the material is physically transferred from one state to another state, then Sale In Transit will be applied irrespective of the adress of all the dealers.

In this case, the material will be delivered physically from A to E through the Carrier (Let us Say K).

A has to mention the Consignee as E. and A will raise the Invoice to B. A will handover the material to K with title ownership. Then B will transfer the title of documents to C by endorsement on LR or a forwarding letter. And similiarly C to D and D to E. The Sale in Transit will be applicable when  the material is in the custody of K. Once the material will be physically handed over or delivered to any other party, then the Sale In Transit will not applicable.