Goods Which Are Returned Need Not be Necessarily Accompanied With a Credit Note | Madras HC
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- Last Updated on 28 August, 2023
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Case Details: Luminous Power Technologies (P.) Ltd. v. State Tax Officer, Adjudication-I - [2023] 153 taxmann.com 623 (Madras)
Judiciary and Counsel Details
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- C. Saravanan, J.
- V. Prakash, Sr. Counsel & K. Krishnamoorthy for the Petitioner.
- V. Prashanth Kiran, Govt. Adv. for the Respondent.
Facts of the Case
The petitioner dispatched goods to consignee/buyer by four different invoices which were accompanied with e-way bills. However, those goods were not received by consignee/buyer as goods got wet due to heavy down pour and re-transported back by petitioner after generating four different e-way bills. The goods were detained by Roving Squad when goods were transmitted back to petitioner’s factory in Chennai on the ground that no Credit Note was issued for return of goods. The petitioner filed writ petition against the detention of goods.
High Court Held
The Honorable high Court noted that the credit note under Section 34 is not required to be issued at stage when goods were being returned without receiving by recipient. The issuance of Credit Note and/or Debit Note under Section 34(1) of CGST Act, is required only for adjustment of tax liability and goods which are returned need not necessarily accompany a Credit Note.
In this case, goods that were detained were covered by four invoices and therefore, the Court held that detention of goods was per se illegal and unwarranted particularly in light of fact that goods accompanied e-way bills, which were generated for return of goods.
List of Cases Referred to
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- ASP Traders v. State of U.P. [2022] 141 taxmann.com 504/93 GST 690/2022 (67) G.S.T.L. 74 (All.) (para 13)
- Hindustan Steel Cement v. Asstt. STO [2022] 141 taxmann.com 342/93 GST 685/2022 (65) G.S.T.L. 133 (Ker.) (para 15)
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