Kolvekar Logistics Vs Joint Commissioner of Commercial Taxes (Appeals) (Karnataka High Court)
In a significant ruling, the Karnataka High Court in the case of Kolvekar Logistics Vs Joint Commissioner of Commercial Taxes (Appeals) clarified that transporters are not required to carry the original tax invoice while transporting goods. Instead, a duplicate copy suffices under the Central Goods and Services Tax (CGST) Act and State Goods and Services Tax (SGST) Act.
Background of the Case
Kolvekar Logistics, a partnership firm registered under the Goods and Services Tax Law, was transporting bitumen in heat-insulated containers. During transit, the vehicle was intercepted and inspected by the Enforcement Officer of the Commercial Tax department. The issue arose when the transporter could not produce the original tax invoice, only a Xerox copy, resulting in a penalty.
Legal Provisions and Arguments
The petitioner argued that neither the CGST Act nor the SGST Act mandates the carrying of the original tax invoice by the transporter. The relevant sections cited by the authorities were Rule 138-A of the SGST and Section 68 of the CGST, which do not explicitly state that the original tax invoice must be carried. According to Rule 48 of the CGST, invoices must be prepared in triplicate: one original for the recipient, a duplicate for the transporter, and a triplicate for the supplier.
