Stock Transfers of Explosives to two State Depots Are Branch Transfers, Not Inter-State Sales: HC

Solar Industries India Ltd. Vs State of Maharashtra (CESTAT Delhi) Conclusion: The movement of explosives from Maharashtra to company depots in West Bengal and Jharkhand under a running contract with Coal India Ltd. constituted branch transfers under Section 6A of the CST Act and not inter-State sales. Held: Assessee-company was engaged in the manufacture and trade of industrial explosives. The company participated in Coal India’s tender process and entered into running contracts that fix prices and maximum supply quantities, but did not guarantee purchase obligations. Subsidiary companies o...