APVAT and CST Act-Inter-State and Intra state Movement o to the places other than the place of buying dealer Certain instructions issued by Commissioner
This is a clarification issued by Commissioner of Commercial Taxes AP , which speaks of circumstances and cases where the goods are detained by the check-post authorities on the alleged lapses occurring in the documents accompanying the movement of goods.
Government of Andhra Pradesh
Commercial Taxes Department
Office of the
Commissioner of Commercial Taxes
CCT’s Ref. Enft/D2/172/2010 Dated: 06 -2-2013
Sri Suresh Chanda, I.A.S., Commissioner of Commercial Taxes, A.P. Hyderabad
Sub: APVAT and CST Act-Inter-State and Intra state Movement of Goods to the places other
than the place of buying dealer –Certain instructions issued- Regarding
It has been reported by some dealers and transporters that, the goods vehicles are detained by the Officials of the C.T. Department at the Check Posts or while in transit , though the In charge of the Vehicle is carrying the required documents, on the plea that, the vehicles are moving to the direction other than the place of the buyer .
In this regard the following instructions are issued to all the Officers in the State including Check Post Officials.
1. The Circumstances in which the goods vehicle can move to the places other than the place of the buyer are explained in the following examples.
a) Intrastate Movement of Goods : The dealer ‘A’ in Hyderabad selling goods to Dealer ‘B’ in Khammam (Buyer) but the goods are moving to Vishakhpatnam to be delivered to the consignee ‘C’ .
When the dealer ‘B’ in Khammam has placed an order for purchase of goods on the Dealer ‘A’ at Hyderabad, he may request the selling dealer ‘A’ at Hyderabad to dispatch the goods directly to the dealer ‘C’ at Vishakhapatnam as the buying dealer ‘B’ at Khammam has sold the goods to the dealer ‘C’ at Vishakhaptanam.
For this purpose, the buying dealer ‘B” may request the Selling dealer ‘A” to write the name and address of the consignee ‘C’ at Vishakapatnam in the Sale Invoice, Waybill and Lorry Receipt(LR) where the goods will be delivered.
As long as the delivery address is noted in the documents accompanying the goods is found to be correct , the CT Officials should allow the movement of goods till the goods vehicle reaches its destination i.e., delivery address written in the above said documents. It may also happen that Dealer “A” (First Seller) may issue Waybill from Hyderabad to Khamam and Dealer “B” (First Buyer) may issue another Waybill from Khammam to Visakhapatnam. It is also valid.
The buying dealer ‘B’ shall issue a local VAT invoice for the sale made by him to the Consignee’ C” at Vishakhaptnam, but the invoice need not be accompanied along with the goods Vehicle for the purpose of its transportation.
b) Inter-State Movement of Goods:
1) The buying dealer ‘ Y’ at Hyderabad purchasing goods from a selling dealer ‘X’ at Mumbai may request to deliver the goods to the Consignee ‘Z’ at Tirupathi . Accordingly the Selling dealer may write the consignee ‘Z” address in the sale invoice, waybill and LR.
As long as the delivery address is written in the above said documents and the goods vehicle is moving directly in the direction of the consignee ‘Z’ place without coming to the place of the buyer ‘Y”, the Officers checking the goods vehicle should allow its movement, if the documents are found to be genuine.
The buying dealer ‘Y’ at Hyderabad should also issue CST waybill in advance for the movement of goods if such goods are notified as sensitive by the Commissioner(CT) A.P. showing the delivery address of consignee ‘Z’ at Tirupathi.
The buying dealer ‘Y’ should also raise APVAT invoice in the name of the Consignee ‘Z’ if the consignment is sold to him.
2) The Buying dealer ‘A’ at Hyderabad may request the selling dealer ‘ B’ at Bhuvaneshwar (Odisha State) to transport the goods directly to the consignee ‘C’ at Bangaluru of Karnataka State.
For the movement of these goods the selling dealer ‘B” at Bhuvaneshwar should write the details of buying dealer ‘A’ and consignee “C” delivery addresses in the invoice/waybill/LR.
If the goods vehicle is accompanied by the above said documents showing the delivery address at Bangaluru, the Officers checking the Vehicle either at Check Post or in-transit should allow the movement of the Vehicle.
In the above two examples ,the sale invoice raised by the buying dealers in the name of consignees need not accompany the goods vehicle while it is moving directly for the delivery of the goods at the place of the consignee.
The field officers and Check Post Authorities are instructed to follow the above Circular instructions scrupulously.
Sd/- Suresh Chanda
All the DCs/ ACs/CTOs/DCTOs in the State (Through mail)
The Check Post Authorities in the State (Through mail)