E-1 sale, sale in transit - without c-form

[V K]

can we make the E-1 sale (sale in transit) by charging full tax (Witout c-form)?? for example: we purchase goods on full tax & sell it on full tax under E-1 sale. is it ok with CST rules??

[Guest]

The effect of E1 sale as per Sec.6(2)(b)of CST Sale is to exempt the second/subsequent CST Sale in the cousre of movement as exempt under the CST Act on the basis of E1 form from dealer and C form from the buyer. If there is no 'C' form from the buyer and you are also charging full tax from the buyer, it is not the E-1 sale. It is only the other liable CST sale covered under the provisions of CST Act.

[binod pandey]

define pleaselatest supreme court decision for procedure of sale in transit under cst act 1956.

AI Summary

E-1 sale treatment: absence of C-form converts the transaction into a taxable CST sale requiring full tax collection. E-1 sale in transit confers CST exemption only where the buyer furnishes a C-form; without the C-form and where full tax is charged by the seller, the transaction is not an E-1 sale but a taxable CST sale governed by the CST Act, so documentary compliance with prescribed forms determines exemption eligibility.