Sale in transit / CST without C -Form

[ashok sharma]

We are a delhi based trader (A) deals into Nonwoven Fabric.

We purchase Nonwoven Fabric from Gujarat (B) and they chared 0% CST becasue CST is exempted on Nonwoven Fabric in Gujarat. No C -Form is required by them.

I want to dispatch the material directly Gujarat to Mumbai based customer (C).

Gujarat based company(B) will raise the invoice in favor of my firm (A) and consignee address will be Mumbai based customer (C).

We (A) will send our invoice directly to customer with 5% CST without C form.

Our questions are -

1. Can we mark consignment sale word on my invoice in place of transporter name and LR ? 

2. There is requiremnt of E1& E2 form (We are not paying any tax to Gujarat based company (B) due to exemption but i am charging CST to Mumbai based customer)

3. Is it called Transit sale?

Please help.

Regards,

Ashok

[YAGAY andSUN]

It is not clear that if you are purchasing goods which are exempted from levy of VAT/CST, then, during transit sale why are you charging CST @ 5%.

Please clarify.

AI Summary

CST applicability on interstate transit sale when supplier claimed exemption, and whether C Forms and transit documents are required. A Delhi trader bought exempt nonwoven fabric from a Gujarat supplier who charged nil CST and no C Form; the goods are consigned directly to a Mumbai customer. The trader plans to invoice the customer charging CST without a C Form. Key operative issues are whether the invoice may be marked as a consignment sale instead of listing transporter and LR, whether E1/E2 transit documentation is required despite the inward exemption, and whether the arrangement constitutes a transit sale for CST purposes.