Notification - validity of central sale

[RAJESH MISHRA]

Dear Sirs, Can we make transaction as per the below query? If yes, kindly specify validity of such central sale with notification / rule & section. Query: Is predetermined sale can be termed as E-1/ E-2, sale? For example, in a transaction there are involve three dealers namely A of Mumbai, B of Delhi & C of U.P. Dealer B of Delhi instructed Dealer A of Mumbai to deliver goods to Dealer C of U.P. directly. Is this predetermined sale can be termed as E-1 sale i.e. sale in transit. Kindly give your valued suggestions with some judgment made earlier in this regard.

[Mukesh Kumar]

In my considered view, this sale is a valid central sale and must constitute E-1 / E-2 sale.

AI Summary

Central sale classification: predetermined triangular delivery qualifies as an E-1/E-2 sale, confirming interstate sale in transit under VAT/CST rules. The document advises that a prearranged triangular transaction-where the seller dispatches goods directly to a consignee in another State on the purchaser's instruction-constitutes a valid central sale and should be treated as an E-1/E-2 sale (sale in transit) for VAT/CST purposes, contingent on satisfaction of relevant statutory conditions and documentary requirements.