Inter-state Stock Transfers vs. Sales: Goods Moved from Rajasthan to Bihar & Jharkhand Not Subject to Central Sales Tax.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....The central issue revolved around whether the movement of goods from manufacturing units in Rajasthan to depots in Bihar and Jharkhand constituted inter-state supply of goods or inter-state stock transfers. The key points are: Transfer of goods from head office to branch cannot be treated as sale in interstate trade since a head office cannot trade with itself. A sale requires transfer of property in goods from seller to buyer for a price, while an agreement to sell involves future transfer subject to conditions. Inter-state sale attracting central sales tax occurs when sale/agreement to sell occasions movement of goods across states. Under the liquor policy, the Corporation is the wholesaler, and manufacturers submit documents like Master .........