Rejection of central sale

[d.v. gupta]

Case of my client selected for audit under DVAT act. The VATO insist on GR of goods sent outside the state. while we have form 31 of the party and payment received by cheque from the party. the party by own vehicle taken the goods outsid state. the VATO is going to reject the central sale. whether he is correct . please discuss.

[Surender Gupta]

I think apparently the action of the VATO is wrong. Since you have all the evidences except copy of GR being own vehicle, VATO should accept the Central Sale.

AI Summary

Central sale evidence: buyer transport, transfer form and cheque payment can validate an interstate sale without a GR. Rejection of a central sale based solely on absence of a goods receipt is inappropriate where the seller produces alternative contemporaneous evidence-namely the buyer's receipted transfer form, cheque payment records, and proof that the buyer transported the goods in its own vehicle-such evidence collectively establishes that possession passed outside the State and validates the interstate sale.