Validity of Sale

[RAJESH MISHRA]

Dear Sirs, Can we make transaction as per the below query? If yes, kindly specify validity & nature of sale (Central / Local) with notification / rule with section. Query 1: In a transaction there are involve three dealers namely A of Mumbai, B of Delhi & C of Mumbai. Dealer B of Delhi wants to deliver / sale (sale in transit), Dealer C of Mumbai after purchasing goods from A of Mumbai. All three are registered dealer and having local & central registration certificate from their respective state. Is this sale is a valid sale or not? If it is valid sale kindly specify validity & nature of sale (Central / Local) with notification / rule & section.

[Mukesh Kumar]

No doubt it is genuine transaction and allowable. But, the care is required to comply with the formalities i.e would it be constituted as Central sale or not? whether buyer is predetermined or not?

AI Summary

Interstate sale validity: triangular sale may be genuine but central sale classification depends on formal documentation and buyer status. The triangular inter state transaction is prima facie genuine and allowable, but whether it qualifies as a central sale depends on compliance with formal documentary and procedural requirements, including proof that the buyer was not predetermined and proper registration, consignment and invoice records as required by applicable notifications and rules.