Tax invoice compliance controls deduction claims when statutory particulars are missing from the invoice itself.

Deduction of tax from bill value under the Karnataka VAT regime depends on a tax invoice complying with the prescribed particulars: the goods, their value, the rate of tax, and the tax amount must be separately shown in the invoice itself. Where invoices omit these mandatory details, the dealer cannot rely on books of account to cure the defect or claim the deduction. The revisional authority was justified in interfering with the appellate order, because the defective invoices did not satisfy the statutory requirements for deduction and the assessment was properly restored.

---

---

Issues: Whether the assessee was entitled to deduct tax from the total value of the bills when the invoices did not separately show the value of the goods and the tax payable thereon.

Analysis: Section 9(1) of the Karnataka Value Added Tax Act, 2003 and rule 29(1) of the Karnataka Value Added Tax Rules, 2005 require a registered dealer, in the tax invoice, to state the description and value of the goods, the rate and amount of tax charged, and the total value. The entitlement to deduct tax from the bill value depends on compliance with these mandatory invoice particulars. Here, the invoices did not separately disclose the value of the goods, the tax rate, and the tax amount in the manner required by law. Entries in the books of account could not override the defective invoices. The revisional authority was therefore justified in interfering with the appellate order that had allowed deduction on the basis of the books of account.

Conclusion: The assessee was not entitled to the deduction claimed, and the revisional order restoring the assessment was in law.

Ratio Decidendi: For deduction of tax from a bill value under the Karnataka Value Added Tax regime, the tax invoice must itself comply with the prescribed statutory particulars by separately showing the value of goods and the tax charged; entries in the books of account cannot cure a non-compliant invoice.

---