Subject: Transit Sale – Movement of goods under rule 52A invoice- Regarding.
The Board vide its Circular No. 96/7/96- CX dated 13.2.1996 clarified that under the heading ‘Transit sale’ movement of goods could take place directly on a Rule 52 A invoice from the manufacturer’s premises to the user’s premises on an order being placed by the dealer of excisable goods without being brought to the latter’s premises. The duplicate copy of the manufacturer’s invoice issued under the provisions of Rule 52A will serve as a cover for transport and for availment of Modvat credit.
2. Representations have been received to the effect that the Central Excise field authorities are insisting that such dealers taking part in ‘transit sale’ should get themselves registered with the Department.
3. The matter has been examined by the Board. I am directed to say that as the movement of goods in such cases will take place on the manufacturer’s invoice issued under the rule 52A which will also be treated as valid duty paying document and not separate invoice under the provision of rule 57G is required to be issued in such cases, such persons taking part in transit sale need not get themselves registered.