Goods which are returned need not be necessarily accompanied with a Credit Note: Madras HC
The petitioner had transported the consignment of solar power generating systems/solar panels of different descriptions to the buyer in Tiruppur under four different invoices.It is submitted that the when the goods were being transported from Chennai to Tiruppur, due to heavy down pour, the solar panels got wet and therefore, the buyer namely Attrib System, Tiruppur, refused to take delivery of the goods mentioned in the four invoices.
Therefore, the petitioner generated fresh e-way bills, all dated 28.12.2022, valid up to 31.12.2022 and re-transported to its factory, which was intercepted by the second respondent on its way back.It is submitted that the detention was incorrect, as the consignee refused to take delivery. Therefore, issuance of Credit Notes under Section 34 of the respective GST enactments does not arise.
The court held that a Credit Note under Section 34 is not mandatory at the stage when goods are returned without being received by the recipient. The issuance of Credit Note or Debit Note under Section 34(1) of the CGST Act is primarily for the adjustment of tax liability. Goods that are returned do not necessarily need to be accompanied by a Credit Note.
In this particular case, since the goods were covered by four invoices and accompanied by e-way bills generated for the return of the goods, the court concluded that the detention of the goods should be deemed illegal and unwarranted.
The copy of the order is as under:
From,
Krishnakant Jakhotia
Mobile No :-9422507911
Email Id :- taxtalknew@gmail.com
