Transit Sales

[YAGAY andSUN]

Can we change the description of goods under transit sale under CST Act while raising the commercial invoice to our customer?

Example  :- We receive an order of item 'X' from our customer.  For item 'X', we do order to our vendor of part of item 'X' say X1, X2 and X3. And ask our vendors to direct supply to our customer these items and we do endorse the relevant documents necessary for evidence of Transit Sale.

Now, the query is that whether at the time of raising commercial invoice to our customer, can we change the description of goods to 'parts of item X as we had obtained the order from our customer for item 'X'.

Please advice.

[BHARAT PUROHIT]

D/ SIRS

 THE BASIC CONCEPT OF TRANSIT SALE IS MOVEMENT OF SAME ( NOT SIMILAR) ITEM.THE PURPOSE OF THIS FACILITY IS TRANSPORT OF SAME ITEM ( WITHOUT STORAGE IN THE WAY) SHOULD NOT B TAXED TO AVOIDE CSCADING EFFECT AND AVOIDE REFUND PROCEDURE.

WITH THIS CONCEPT, I BELIEVE, CHANGE IN DESCRIPTION IS NOT ALLOWED. THE MATERIAL DESCRIPTION MUST B THE SAME. SULPHURIC ACID CAN B CHANGED AS SULPHUR ACID COMMERCIAL GRADE.

 

 THNX/ B.B.PUROHIT

AI Summary

Transit sale requirement: description must match the same goods in transit; minor grade clarifications permitted. Transit sale requires movement of the identical contracted goods; changing invoice descriptions that alter the item's identity is not allowed. Documentation must show the same goods in transit; minor grade clarifications that do not change identity are permissible.