UNDERSTANDING E1 AND E2 SALES UNDER CST ACT


Central Sales Tax Act 1956 envisages single point of taxation i.e tax at the first point of sales. Subsequent sales during the movement of the goods from one state to another have been exempted under section 6(2) of CST Act.

Before proceeding to understand which sale is exempted under section 6(2) and the conditions for exemption, one should understand some relevant concepts relating to it.

What is sales by transfer of documents of title: Section 3(b) provides that a sale or purchase effected by transfer of documents of title to the goods during their movement from one state to another shall be deemed to take place in the cource of interstate trade or commerce.


Explanation 1 to section 3 provides that the movement of goods commences when goods are delivered to carrier and terminates when delivery is taken from the carrier.

Explanation 2 to section 3 provides that where the movement of goods commences and terminates in the same state it shall not be deemed to be a movement of goods from one state to another by reason merely of the fact that in the cource of such movement the goods pass through the territory of any other state.

For example if goods are booked from Delhi to Mumbai by Railway, movement of goods will commence as soon as goods are handed over to the Railway booking office at Delhi for transport. The movement will be deemed to continue even if goods reach Mumbai and are lying in possession of railways. The movement will be deemed to have terminated only when the delivery of goods is taken at Mumbai on submission of railway receipt. Thus goods will be deemed to be in movement for sales tax purposes till delivery is taken at destination.

What is document of title to goods: Document of title to goods means a document which evidences that the person holding the document has the title of the goods i.e he is the owner of the goods which are represented by the said document.

In normal trade practices when the goods are handed over to the carrier by the seller for transportation to reach the buyer, the carrier issues a receipt to the seller. The seller then sends this receipt to the buyer and the buyer gets delivery of goods on submission of such receipt to the carrier when goods reach at the buyer’s destination. This receipt issued by carrier is document of title to goods.

Thus a document of title to goods may be a lorry receipt(in case of road transport), a Railway receipt(incase of transport by rail), Bill of Lading(in case of transport by sea or an airway bill(in case of transport by air).

What is transfer of documents of title to goods: under section 6(2) of CST provides exemption from CST on sales subsequent to an interstate sales, which has been effected by transfer of documents of title of goods during their movement. Thus it becomes essential to understand what is transfer of documents of title of goods.  

Section 2(4) of the Sales of Goods Act permits transfer of goods by ‘endorsement or delivery of documents of title. Thus documents of title of goods can be transferred by mere delivery or by endorcement on document. Even though goods can be transferred by mere delivery of documents without endorcement on such document, but it is advisable and also convenient to transfer the documents by written endorcement on the documents as it gives proof that the transfer is in due cource of trade, for the purpose of claiming exemption u/s 6(2) of CST Act.  



Conditions for claiming exemption u/s 6(2) of CST Act: Section 6(2) of CST Act provides that notwithstanding anything contained in section 6(1) or 6(1A), where a sale of any goods referred in section 8(3)[i.e.goods which are mentioned in the registration certificate of the dealer],  in the cource of inter state trade or commerce has either occasioned the movement of such goods from one state to another or has been effected by transfer of documents of title during movement from one state to another, any subsequent sales during such movement effected by transfer of documents of title of such goods to a registered dealer, shall be exempt from tax. The condition is that certificate in prescribed form has to be obtained from the registered dealer. Section  6(2) runs as under:
(2) Notwithstanding anything contained in sub-section (1) or sub-section (1A), where a sale of any goods in the course of inter-State trade or commerce has either occasioned the movement of such goods from one State to another or has been effected by a transfer of documents of title to such goods during their movement from one State to another, any subsequent sale during such movement effected by a transfer of documents of title to such goods to a registered dealer, if the goods are of the description referred to in sub-section (3) of section 8, shall be exempt from tax under this Act:
Provided that no such subsequent sale shall be exempt from tax under this sub-section unless the dealer effecting the sale furnishes to the prescribed authority in the prescribed manner and within the prescribed time or within such further time as that authority may, for sufficient cause, permit,
a) a certificate duly filled and signed by the registered dealer from whom the goods were purchased containing the prescribed particulars in a prescribed form obtained from the prescribed authority; and
b) if the subsequent sale is made to a registered dealer, a declaration referred to in sub-section (4) of section 8:
Provided further that it shall not be necessary to furnish the declaration referred to in clause (b) of the preceding proviso in respect of a subsequent sale of goods if, the sale or purchase of such goods is, under the sales tax law of the appropriate State exempt from tax generally or is subject to tax generally at a rate which is lower than three per cent. or such reduced rate as may be notified by the Central Government, by notification in the Official Gazette, under sub-section (1) of section 8 (whether called a tax or fee or by any other name); and
(b) The dealer effecting such subsequent sale proves to the satisfaction of the authority referred to in the preceding proviso that such sale is of the nature referred to in this sub-section."
From reading the above section the following conditions can be summed up which are required to be fulfilled before claiming exemption of CST on subsequent sales under section 6(2):
1.      First sale should be an inter state sales: The first sales must be an interstate sales. It can be either a section 3(a) or section 3(b) sale. A sales is considered as an interstate sales as per section 3 of CST Act if
(a)    It occasions the movement of goods from one state to another or
(b)    It  is  effected by transfer of documents of title to the goods during the movement of goods from one state to another.
Section 3(b) has already been explained above.
2.      Transfer of documents of title: Subsequent sales must be a section 3(b) sale i.e it should be a sales by transfer of documents of title to goods during the movement of such goods from one state to another. As already explained above movement of goods from one state to another commences when goods are handed over to carrier and movement is deemed to continue till delivery is taken at the other end.
3.      Subsequent sales must be to a registered dealer: The subsequent sales is exempt only if it is made to registered dealer
4.      The goods should be of description referred to in section 8(3) of CST Act: Another requirement for claiming exemption for subsequent sales u/s 6(2) of CST Act is that the sale should be of goods which are specified in the certificate of registration  of purchasing dealer.
5.      Certificates required:  Dealer selling the goods has to issue a certificate in prescribed form to the purchasing dealer(Prescribed forms are E1 form if its first sale and E2 form if subsequent sales). Subsequent purchaser has to issue certificate in prescribed form(This is C form) to his seller. Such certificates are to be produced before assessing authorities within prescribed time. The certificates in C,E1 and E2 forms are to be issued on quarterly basis.
The requirements for issuing the above forms i.e who is to issue which form  and to whom which form is to be issued can be explained with the help of following example:
Suppose W in Punjab sends goods in Delhi and raises invoice on X in Bihar, during the movement of goods X sells goods by endorcing documents of title to goods in favour of Y who is a dealer in U.P and Y sells ultimately goods to Z who is a dealer in Delhi by further endorcing the documents of title while the goods are still in transit.Z finally takes delivery of goods in Delhi and the movement of goods comes to an end. 
Now in above example W will issue E-I form to X and will get ‘C form’ from X.

 X will issue E-II form to Y and will get ‘C form’ from Y.

Y will issue E-II form to Z and will get ‘C form’ from Z

 A dealer who sells goods in transit has to obtain E-I/E-II forms from the seller and C form from the buyer. Submissions of both E-I/E-II and C form is mandatory to avail exemption.-Phool Chand Gupta v. State of AP 104 STC 601(SC)

Provisions of C form applicable to E1/E2 forms: Some provisions which are applicable to C forms are also applicable to E-I/E-II forms. For example one declaration for one quartor, indemnity bond if form is lost, issue of duplicate form, sales tax concession is not available if the forms are not submitted.

Latest case of Delhi High Court and Supreme court’s verdict in A&G Projects and Technologies Ltd case: The Supreme court in A & G Projects and Technologies Ltd v. State of Karnataka [2209] 19 VST 239; [2009] 2 SCC 326 explained the scheme of section 6(2) of CST Act and held that once the first inter state sale has suffered CST then subsequent sales effected by transfer of documents during transit will be exempt provided conditions prescribed u/s 6(2) are satisfied. This has been done to remove the cascading effect. The observation of the Supreme court in the said case is provided as below

“Analysing Section 6(2), it is clear that sub-section (2) has been introduced in Section 6 in order to avoid cascading effect of multiple taxation. A subsequent sale falling under sub-section (2), which satisfies the conditions mentioned in the proviso thereto, is exempt from tax as the first sale has been subjected to tax under sub-section (1) of Section 6 of the CST ACT 1956. Thus, in order to attract Section 6(2), it is essential that the concerned sale must be a subsequent inter-State sale effected by transfer of documents of title to the goods during the movement of the goods from one State to another and it must be preceded by a prior inter-State sale. It is only then that Section 6(2) may be attracted
in order to make such subsequent sale exempt from levy of sales tax. However, the
proviso to sub-section (2) of Section 6 prescribes further conditions and it is only on
fulfillment of those conditions that the subsequent sale stands exempted. If those
conditions are not satisfied then, notwithstanding the fact that the sale is a
subsequent sale, the exemption would not be admissible to such subsequent sales.
This is the scheme of Section 6 of the CST ACT 1956.”

In a recent case namely Mitsubishi Corp. Ind. Ltd. Vs Value Added Tax officer decided by Delhi High court wherein sighting the above observation of the Supreme court it was argued by the councel for the state that if the first Inter State sales is an exempted sale then the subsequent sales should not get the benefit of Section 6(2) of CST Act even if all the conditions u/s 6(2) are satisfied since the first sales had not suffered tax. The Delhi High Court in this regard observed as under:
“A reading of the said portion of the Supreme Court decision only indicates that where the first sale is taxed, the second sale would be exempted because of the object of avoiding the cascading effect. However, the Supreme Court decision cannot be understood to mean that where the first sale is exempted, the second sale must be taxed even though the conditions under Section 6(2) for exemption stand satisfied.”

Thus even if the first sales was exempted due to exemption on tax available in the state wherefrom the first sale is made the subsequent sales in other state will be exempted if the conditions u/s 6(2) of CST Act are satisfied.


Exemption in case of Predetermined contract of sales u/s6(2)  Supreme court in its verdict in A&G Project(Supra) case examined sales u/s 3(a) and 3(b) and laid down conditions for section 3(b) sales which need to be fulfilled before claiming exemotion u/s 6(2)
It was held by Supreme court that if a contract of subsequent sales is in existence before the commencement of the movement of goods for the purpose of exemption u/s 6(2) of CST Act then the exemption u/s 6(2) will not be available. But the decision of the SC has been interpreted by department in various states to mean that if there is predetermined subsequent buyer before the movement of goods starts even then subsequent sales will not qualify for exemption u/s 6(2) as in transit sales.

But better sense have seemed to be prevailed as the West Bengal Govt has issued an explanatory circular regarding to set out the position in this regard. It has been explained in the circular that in A & G technology case it was held that pre determination of contract of subsequent sales before the movement of goods starts may result in denial of exemption u/s 6(2) but it cannot be understood to mean there cannot be pre determination of the buyer especially in case of tailor made goods and pre determination of buyer or receiving of an order from the subsequent buyer will not result in denial of exemption u/s 6(2)


The  circular is produced as below.
GOVERNMENT OF WEST BENGAL
DIRECTORATE OF COMMERCIAL TAXES,
14, BELIAGHATA ROAD, KOLKATA-700 015.
Trade Circular No. 11 /2010 Date: 04.10.2010

Sub : Inter state sale that comes u/s. 3(b) of the CST Act, ’56 and is usually
claimed as exempted u/s. 6(2 of the Act.

Reports are coming in from different corners highlighting the fact that
dealers, registered in West Bengal, who have since been effecting inter state
sales u/s. 3(b) of the CST Act, ’56 and have since been claiming those
subsequent sales as exempted u/s. 6(2) of that Act, are now denied their
claims by the assessing authorities of Directorate. Further, the dealers,
registered in West Bengal, who have effected inter state sales falling u/s. 3(a)
of the Act are, in some cases, denied issue of certificates in form E-1 by the
assessing authorities. The reason, as presumed by assessing authorities, is
that in all such cases the concerned dealers have effected the purported inter
state sales u/s. 3(b), not during the movement of goods from one state to
another, pursuant to sales u/s. 3(a) but prior to the commencement of
movement of goods from one state to another.

The fact cannot be denied that in the commercial world, substantial
number of transactions of subsequent sales take place particularly for
specially made goods where a dealer first collects order from his outside state
customer and thereafter places his corresponding purchase order either to
inside state supplier or to outside state supplier. Therefore, there exists one
pre-existing order or pre-determined party at the hands of a subsequent
seller when he is making agreement of purchase/sale with the inside state or
outside state supplier.

Reports, thus received, also show that assessing authorities are
following the ratio of the judgment of Hon’ble Supreme Court of India
pronounced in the case of A & G Projects & Technologies Ltd. –vs- State of
Karnataka reported in 19 VST 239(2009). In that judgment Hon’ble Court
had an occasion to refer to inter state sale falling u/s. 3(a) and that u/s. 3(b)
and also to refer, in that connection to exemption of sale prescribed u/s. 6(2)
while Hon’ble Court was virtually concerned to decide on the appropriate state
which would be competent to levy CST in relation to a long chain of 3 inter
state sales, all being decided by the assessing authority of Karnataka as inter
state sales falling u/s. 3(a) of the Act. (Reference para 8 & 9 of the judgment).
Hon’ble Court was pleased in that context to lay down the following principles
of law in para 11 :
“The dividing line between sales or purchases u/s. 3(a) and those
falling u/s. 3(b) is that in the former case the movement is under the contract
whereas in the latter case the contract comes into existence only after the
commencement and before termination of the inter state movement of the
goods.”
Emphasing on the part underlined above i.e. the contract comes into
existence only after commencement, in the latter case, the assessing
authorities are denying the dealer’s claim of subsequent sales u/s. 6(2) where
they find pre-existing order or pre-determined party at the hands of the
subsequent seller. This has resulted in denial of sale falling u/s. 3(b) and
consequential denial of issue of certificate in form E-1 etc. to the original
supplying dealer who has effected sale u/s. 3(a) and also denial of claim of
sale u/s. 6(2) to the subsequent seller who has effected subsequent sale.
Circumstances being as such, we may have a relook on the position of
law. From the definition prescribed under the Act, we see that section 3(a)
requires that not the contract of sale but the sale itself would occasion the
movement of goods from one state to another. Section 3(b) requires that sale
is to be effected i.e. contract of sale should come into existence by transfer of
documents of title to the goods after the commencement of movement and
before termination thereof.

Now let us see what is observed by Hon’ble Courts from time to time.
In the judgment delivered in the case of Tata Iron & Steel Co. Ltd. –vs- S.R.
Sarkar (1960) 11 STC 655 (SC), Hon’ble Supreme Court has settled the
following principles:
i) Mere contract of sale is not a sale within the definition u/s. 2(g)
of CST Act, ’56.
ii) An inter state sale can either be governed u/s. 3(a) if it
occasions movement of goods from one state to another or u/s.
3(b) if it is effected by transfer of documents of title after the
commencement of movement. They are mutually exclusive.
iii) A sale (transfer of property) becomes an inter state sale u/s.
3(a) if movement of goods from one state to another is under
contract of sale. It implies that not a contract of sale but the sale
itself occasions the movement of goods and, therefore, any
contemplation of endorsement of consignment note/RR is not
permissible under 3(a) sale.
iv) Transfer of document of title to the goods will arise only in case
of sale u/s. 3(b) and that too during its movement irrespective of
when the contract of this second/subsequent sale has been
made between second seller and the next/the final purchaser.

Moreover, a sale falling u/s. 3(b) takes place only when the transport
documents are physically transferred or stand transferred by implication and
obviously that by instruction. This has already been accepted as constructive
transfer of transport documents, in judicial parlance,as envisaged by Hon’ble
Apex Court in the case of G.A. Galiakotwalla & Co. (P) Ltd. –vs- The State of
Madras reported in 37 STC 576 (1976)(SC).

Besides above, we see that in the case of State of West Bengal &
Others –vs- Joshi Jute Corporation & another reported in 100 STC 17 (1996)
Hon’ble Calcutta High Court has observed that a dealer in jute goods in
Calcutta placed an order upon a jute mill in Calcutta for certain jute goods.
Under instruction from the dealer, the goods were delivered directly to a party
in Kerala. Hon’ble Court has admitted that sale made by dealer in jute goods
in Calcutta to Kerala party was subsequent sale within the meaning of section
6(2) of the Act and hence exempt.

When principles of law laid down above are holding the field, Hon’ble
Supreme Court has pronounced the judgment in case of A & G. Projects &
Technologies Ltd. (supra). As mentioned earlier, in this case Hon’ble
Supreme Court again laid down almost the same principles of law in same
languages excepting that in earlier judgment (Tata Iron & Steel Co. Ltd. etc.)
the sale contemplated u/s. 3(b) is held to be one which is effected by transfer
of documents of title to the goods during their movement from one state to
another and in the latest case (A & G. Projects & Technologies Ltd.) it is held
to be one where contract comes into existence only after the commencement
and before the termination of the inter state movement of goods. In both the
cases, Hon’ble Court has emphasized on the materialization of the contract by
using the terms “sale is effected” in earlier case and “contract comes into
existence” in latter one and not on its written or verbal understanding. ‘Sale is
effected’ means contract of sale has come into existence and nothing more
than that. Nothing new is, therefore, observed by Hon’ble Apex Court in the
latter case.

It is, therefore, clarified for all concerned that –
i) in case of sale falling u/s. 3(a), any kind of endorsement of
consignment note/LR etc. cannot be invited;
ii) as contract of sale and sale itself are altogether different in case
of inter state sale, pre-existing order or pre-determined parties
will not negate any 3(b) sale if other requirements are found
fulfilled i.e. physical or constructive transfer of documents of title
to the goods is made;
iii) purchase of goods from local dealer and sale of it to outside
state purchaser by transfer of documents of title to the goods will
also qualify as sale falling u/s. 3(b);
iv) once a sale is established as 3(b) sale, the same will
automatically qualify itself to come under the ambit of section
6(2) of the Act;
v) section 6(2) is simply concerned with a valid 3(b) sale, a
certificate in form E-I/E-II issued by supplier and a declaration in
form ‘C’ collected from customer and nothing more than that.

All concerned are, therefore, requested to follow the clarifications given
above. Issue of certificate in form E-I/E-II and of declaration form in Form ‘C’
in connection with subsequent sale is to be streamlined accordingly. It is
hereby informed, in this connection, that authority will take a tough stand if it is
found that a dealer registered in West Bengal is claiming input tax credit
under WBVAT Act on purchase of an item from a local dealer while at the
same time he is claiming inter state sale of the said purchased item u/s. 3(b)
of the CST Act, ’56, in this way or that, and thereby as exempted u/s. 6(2) of
the same Act.
I want to make it clear that this circular is clarificatory in nature and not
at all an interpretation of law.
Although the above circular is issued by West Bengal Govt. and is an explanatory in nature but would be very helpfull in interpreting the relevant provisions of the law applicable through out all states.

30 comments :

  • could you please explain a little about the name of the consignee GR of the transporter of the first seller? as i understand the GR shall be marked to the first seller only. can the same rule in valid for order side items too, as there are instances when preexistence of sale contract before execution of purchase contract on tailor made goods can be termed as misuse of the spirit of the rule.

  • The name in the GR should always be that of first buyer and for subsequent sales written endorcement on the GR should be made in the favour of subsequent buyer.

    If the GR is made by the first seller in the name of ultimate buyer then it would create doubt as to that the contract of subsequent sales has happened before the goods were put into transit which may result in denial of exemption u/s 6(2) of CST Act.

    Same case should be in tailor made goods. But in case of tailor made goods it is difficult to prove sometimes that the contract of subsequent sales has been made after the goods were put into transit by the first seller and its not a section 3(a) sales in which case the benefit of section 6(2) may be denied.

  • Kindly advise on the following

    1. X in Bengal sends goods to Y in Maharashtra .During the same movement, Y sells goods to another buyer Z in Maharashtra by transfer of documents of title. Whether the second sale by Y to Z is interstate or intrastate ? If it is intra state sale, whether Y is liable to pay tax under the Maharashtra VAT ?

    2. To get E1 form from first interstate seller, should the buyer need to prove to the seller that he has made a subsequent inter sate sale by transfer of documents of title. If so, how it is to be proved?


    3.X in Kerala sells goods to Y in Tamilnadu. Then Y sells goods to Z in Kerala by transfer of documents of title to the goods during the same movement. What would be tax implications?

  • 1. Sales between Y to Z is an inter state sales and benefit of exemption u/s 6(2) will be available subject to the satisfaction of other conditions.

    2. No need to prove anything to first seller just ask for the E1 form from the first seller stating him that the subsequent sale is going to be an in transit sales.

    3 If the movement of goods starts and ends in the same state then it will not be treated as an interstate sales as per explanation 2 to section 3 of CST Act so in this case benefit of section 6(2) may not be available on the subsequent sales.

  • Sir Your discussion on transit sales under the CST Act is informative. But as regards your reply to the 2nd. querry made by Mr. Roni Jacob, CA I have yet another doubt, i.e. what if the first seller does not issue E-1 Form to the first purchaser even after receiving the C Form from him and takes the plea that I had sold the goods on C Form condition and just give me the C form and do not ask for anything more?

  • E-1 form is must to claim exemption u/s 6(2) in regard to the subsequent sales, E1 from is mandatory from first seller for claiming exemption on subsequent in transit sales

  • Is C form is mandatory? or can the movement of goods can happen on full rate of tax during the first sale? Should E1 and C form should co-exist in the same transaction or is it not necessary? Please give your thoughts.

    Regards
    Harsha S.Rumale

  • Kindly advise on the following

    1. X in Maharashtra Sells goods to Y in JHARKHAND. Y sells goods to another buyer Z in JHARKHAND by transfer of documents of title. Whose road Permit should X use to despatch the material, Y or Z?

    Regards
    Umesh Agrawal

  • Sir, thanks for your response. E-1 form is mandatory to claim exemption. I am clear about this.But does the statute cast any responsibility on the first seller to issue E-1 Form? To my knowledge there is no such provision. In this situation if the first seller does not issue E-1 form what legal remedy exists on the part of the person who intends to claim exemption?

  • Dear Umesh Agrawalji. In your querry Y and Z both are of Jharkhand.Road permit is meant to facilitate smooth inter-State movement of goods.The first inter-State purchaser in your case is Y. So Road permit of Y should be used.

  • 1. X in Maharashtra Sells goods to Y in DELHI. Y sells goods to another buyer Z in HARYANA by transfer of documents of title. Whose TIN No. use to despatch the material, X Y or Z?And also pls confirm Z is not a registered dealer

    Regards

    Sanjiv Yadav

  • X will raise invoive to Y as Y is his buyer. Y will then raise invoice in favour of Z and will endorce in writing the GR in favour of Z. whether Z is a registered dealer or not is immaterial to the exemption of subsequent sales in such case u/s 6(2)of CST Act subject to fulfilment of all conditions of section 3(b) and 6(2).

  • Hello Mr Bajaj,
    Thanks for the explanations above. I have a question. We are based in Pune - maharashtra and have received order from Orissa. Our supplier is from Maharashtra. We want to do Sale in Transit transaction. Its predetermined contract sale. We have asked our supplier to send material directly to Orissa under C form. We shall endorse the L.R and send the goods. We will not levy CST in our invoice to customer.We shall take E 1 from from our supplier. Is this correct transaction and eligible for exemption to CST to our end customer ? Pl advise

  • Purchasing from local dealer then sending outside the state, in such case the sale outside state will be the first CST sales and will be considered as section 3(a) sales hence will be liable for CST and exemption u/s 6(2) will not be available. In simple words its not an E-I sales

  • Hello Mr. Bajaj,

    I have a question. I am based in Mumbai. I need to supply material to a dealer in Madhya Pradesh (Z).I order that material to X in Mumbai who purchases the same from a manufacturer(Y)in Gujarat and instructs the manufacturer to send material to Madhya Pradesh. Manufacturer gets the transport receipt directly for delivering material to me in Andhra Pradesh at Z's address. What forms are needed to be given by whome to get examption under Sale in Transit. Please advice

  • Dear Mr Bajaj:
    While searching on the internet I came across your website and hence this mail.
    Sir, could you please advise on the following:
    Manufacturer X sells headlight relays to an automotive parts manufacturer.
    X sends goods to various branches of the customer in different states.
    In the case of customer's Jalandhar branch for issuing C form they are asking for E1 form.
    X is unable to get the E1 form since his Sales Tax advisor informs that for FY2007-08 E1 form is unavailable since it is time barred beyond 2 years.
    Could you please advise me on what is the best way out of this.
    Thank you for your time and advise.
    Regards,
    Ajay S Kini

  • Dear Mr Bajaj:
    Your post on E1C is informative. Sir could you please advice if the first buyer has to furnish details of subsequent buyers to the first sellers in order to get E1 from him ??

    Regards ,
    Chandan

  • Hi, If X in Andhra sells goods to Y in Gujarat who sells the goods to Z in Haryana who sells the good to A in Gujarat again...Are Z and A liable to pay CST as its an subsequent sale?

    regards,

    Madhur

  • Can please someone suggest if E2 form can be issued without E1 ???

  • my company entered into a works contract with a contractor in 2010.The contractor is registered in the same state and is making interstate purchase but now he is saying that he has made E1 sale to my company, for which he is asking for c forms. The bills of seller states contractor as buyer and my co.as consignee but the contractor is receiving the goods in his store itself and says that he is receiving goods on behalf of my company for which it has also signed an indemnity bond.
    can the first buyer receive the goods on behalf of second buyer in case of E1 transaction by signing an indemnity bond?

  • Dear Sir. Hello. I have a question for the E1 Sale.

    "A" from Delhi sells goods to "B" in Punjab

    "B" in Punjab sells the goods to "C" in Haryana via E1 Sale and endorsing the GR. "Transfer of documents".

    "C" wants to take the modvat of the Excise levied on the invoice.

    Is it necessary for "B" to be a registered excise dealer so as to enable the "C" to take the modvat.

  • This comment has been removed by the author.
  • We at Mumbai "A" purchased material from Gujarat "B" stating sales under E1 terms & delivery to mumbai "C" by courier & final buyer in mumbai "D" lifts material from mumbai "C".

    A is 1st buyer in Mumbai,
    C is delivery place Mumbai
    B is supplier from Gujarat - Invoice @ 2% CST + "Sales under E1" to A + delivery Address to C by Courier.
    A invoice @2% CST sale to "D" Mumbai - Delivery from "C" where material despatch through courier by Original Supplier "B"

    Is this valid transaction under E1 /C?
    Date of sale Invoice to "D" by "A" ?
    Need to write Sale under E1 & 2% CST even if A sales to D in same state?
    Pls..... advice......


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  • Dear sir,

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