Case Law Details
Divya Jyothi Petrochemicals Co. Vs Joint Commissioner Of Commercial Taxes – Appeals (Karnataka High Court)
In a recent case, Divya Jyothi Petrochemicals Co. v. Joint Commissioner Of Commercial Taxes, the Karnataka High Court deliberated on the legality of detaining goods due to the absence of the original copy of the invoice during transportation.
The petitioner, a partnership firm registered under the Goods and Services Tax Law, transported bitumen for sale. However, during transit, enforcement officers intercepted the vehicle, claiming the absence of the original tax invoice warranted a penalty. The petitioner contested this, arguing that neither the State Goods and Services Tax Act nor the Central Goods and Services Tax Act mandates the transport of the original tax invoice.
The court examined Rule 138-A of the SGST and Section 68 of the CGST cited by the respondents and noted that these provisions do not explicitly require the transport of the original tax invoice. Instead, Rule 48 of the CGST stipulates the preparation of the invoice in triplicate, with the original copy meant for the recipient, not the transporter.
The petitioner had already paid the required tax, yet faced additional penalties. The court ruled in favor of the petitioner, emphasizing that the transporter’s obligation is to carry the duplicate copy of the invoice, not the original. As a result, the court quashed the orders levying tax and penalty, directing the refund of the excess tax paid.
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