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Answer Posted / manish.panchal
It is a Form Issued by a 1st Consignee to Seller.
Transaction works in Following manner.
A - Seller in RAJASTHAN.
B - Consignee in GUJRAT.
C - Final Cosumer in MAHARASHTRA.
"c" Wants material which is only manufactured by "A".But
directly will not sell good to "C"."C" will approach to "B"
as he knows "A".
Now, "A" will bill to "B"in Gujrat stating that Good wlll be
delivered to different Consignee ie "C" in Maharashtra. and
Even LR ( Lorry Receipt ) will be prepared in name of "C".
After all this. "C" will issue a Form C to "B". Since "B"
have not consumed or traded goods locally and his name in
involved in this transaction and specifically sold to "C"
through him, he will issue a E1 form to "A". As "A" have not
sold goods directly to "C".
Hope this makes you clear.
E1 form will not be issued if A & B were in same state.
There has to be a three different state for such
Transactions.
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