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

Clarification on E-1 Sale: Full Tax Charged Without C-Form Is Regular CST Sale, Not Exempt Under Section 6(2)(b) CST Act. A query was raised about conducting an E-1 sale, or sale in transit, without using a C-form and charging full tax. One response clarified that under Section 6(2)(b) of the CST Act, an E-1 sale exempts the second or subsequent CST sale during movement if an E-1 form and C-form are used. Without a C-form, charging full tax does not qualify as an E-1 sale but as a regular CST sale. Another response requested clarification on the latest Supreme Court decision regarding the procedure for sale in transit under the CST Act of 1956.