E-1 Sale w/o knowledge of Consignor., VAT + CST

[VIKAS KAPOOR]

Refer to SAle in transit. Kindly confirm can a buyer further endorse the doc for sale in transit w/o knowledge of Consignor. for Example :

A despatch the goods to B, during movment of goods B further endorse the LR to C w/o knowledge of consignor , as at the time of despatch there was no such intention of Buyer. Now B is asking for E-1 form & ready to provide the C- form , also B has received the C form from C.   B has completed all the formalities of SAle In transit.  but Only he has not taken the  consent of Consignor.

your expert advice is required on the issue.

Regards.......Vikas Kapoor

Posts / Replies

[Pradeep Khatri]

Goods can be moved by endorsing the documents of title upto the extent of form E-II.  Hence there is no requirement of obtaining the consent of the consignor.

[Rangarajan D V]

There is no requirement to obtain the consent of the seller i.e. consignor when such goods are sold in transit. The very purpose of Sec.6(2) of the CST is to avoid multiple interstate tax and hence very much complies with the said section. And the example stated by you clearly depicts what is stated in the Section qualifying the transaction as an Transit sale against Form E1.

Regards

Rangarajan DV

[VIKAS KAPOOR]

Dear Mr Khatri & Rangarajan

That is fine that all the documentation are in place, but just to confirm , if suddenly ( after some months/year) somebody asks for the E-1 Form , which was not aware to the consignor. how he will process the docs to the VATO for E-1 forms after a year or so from his sales tax Return

Regards..Vikas Kapoor