Movement Of Goods To CFAs In Other States Is Stock Transfer, Not Inter-State Sale; Central Sales Tax Not Leviable: CESTAT

The CESTAT (Customs, Excise, and Service Tax Appellate Tribunal) has ruled that movement of goods to CFAs (Carrying and Forwarding Agents) in other states is stock transfer, not inter-state sale, thus Central Sales Tax is not leviable. This significant clarification distinguishes between internal business transfers and actual sales. The tribunal determined that merely moving goods to a CFA for storage and subsequent distribution in another state does not constitute an inter-state sale at that point, and therefore, Central Sales Tax (CST) should not be imposed on such movements.