2024 (3) TMI 549 - HC - GST

Determining the tax and penalty - Vehicle transporting consignment without Original Tax Invoice - manner of issuing the Invoice - HELD THAT - Rule 48 of the CGST, deals with the manner of issuing the Invoice. Accordingly, to which the Invoice shall be prepared in triplicate in case of supply of goods. The original copy marked as such is meant for recipient or the purchaser and therefore, same will not be carried by transporter. As per Section 48(1)(b) of the CGST, it is only the duplicate copy is meant for transporter and the triplicate copy is for the supplier as per clause-C. Therefore, it is clear that the transporter is not required to carry Original Tax Invoice but law mandates him to carry the duplicate copy. Thus, the contention taken by the respondents that the petitioner is liable for tax and penalty as the transporter had not carried Original Tax Invoice cannot be accepted. It is stated that the petitioner is levied with double tax as he has already paid the tax as required to be paid and once again he paid the tax with penalty and therefore, same is liable to be refunded. The writ petition is allowed.

Summary

Issues involved:
The issues involved in the judgment are the requirement of carrying the Original Tax Invoice by the transporter under the State Goods and Services Tax Act, 2017 (SGST Act) and the Central Goods and Services Tax Act, 2017 (CGST Act).

Details of the Judgment:

Issue 1: Requirement of carrying Original Tax Invoice
- The petitioner, a partnership firm registered under the GST Law, was transporting bitumen in heat insulated containers for subsequent sale.
- The Enforcement officer intercepted the vehicle and imposed a penalty for not carrying the Original Tax Invoice.
- The petitioner contended that neither the SGST Act nor the CGST Act mandates the transporter to carry the Original Tax Invoice.
- The petitioner argued that Rule 48 of the CGST Act specifies that only the duplicate copy of the Invoice is to be carried by the transporter, not the original.
- The court held that the transporter is not required to carry the Original Tax Invoice, as per the provisions of the CGST Act.
- The court noted that the petitioner had already paid the tax required and paid it again with the penalty, leading to double taxation.
- The court allowed the writ petition, quashed the orders imposing tax and penalty, and directed the refund of the excess tax and penalty to the petitioner within three months.

This judgment clarifies the legal requirement of carrying the Original Tax Invoice by transporters under the GST laws, specifically the SGST Act and the CGST Act. The court emphasized that the transporter is obligated to carry only the duplicate copy of the Invoice, not the original, during the transportation of goods. The decision highlights the importance of adherence to the specific provisions of the law and ensures that taxpayers are not subjected to double taxation due to misinterpretation or misapplication of the regulations.