Vrs Foods Ltd Vs Additional Commissioner (Allahabad High Court)
SEO Title: VRS Foods: Delivery Challan Must Accompany Goods
The Allahabad High Court has ruled that a delivery challan must accompany goods in transit, even if they are only being transported for weighment. The court’s decision came in the case of VRS Foods Ltd vs. Additional Commissioner, where it upheld a penalty imposed on the company for transporting goods without proper documentation. The judgment reinforces the position that the absence of requisite documents at the time of interception is a clear violation of the Goods and Services Tax (GST) laws, regardless of the company’s subsequent claims.
The dispute arose after a truck carrying a consignment of battery scrap from VRS Foods Limited was intercepted by a mobile squad of the Commercial Tax Department in Ghaziabad. At the time of the interception, no documents whatsoever were available with the driver. A show cause notice was issued, leading to a detention order. In its reply, the company contended that the truck was merely en route to a nearby weighbridge, Balaji Dharmkanta, and a Gate Pass had been issued but was not carried by the driver. The company also argued that under Rule 138(14)(n) of the GST Rules, no documents are required for goods sent for weighment within a 20-kilometer radius. They further highlighted that the consignee, M/s Shiva Traders, had later accepted the goods and made the payment, indicating there was no intent to evade tax.
