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Section 3(b) of the CST Act provides for passing of property in goods by transfer of document of title of the goods while the goods are in transit from one state to another, unless the property in goods passes by transfer of document of title to the goods, provisions of section 3(b) cannot be applied.
In view of the above the rejection of exemption by the AA is upheld on this account. The petitioners appeals to the DVAT Tribunal are pending. The DVAT Tribunal prima facie observed as follows:- 23.