GST transit documents: original tax invoice not required during transport, and tax and penalty could not stand on that basis.

Under the GST transit-document framework, a transporter was not required to carry the original tax invoice; the statutory scheme contemplated issuance of the invoice in triplicate, with different copies meant for the recipient, transporter and supplier. On that basis, insisting on the original invoice during transit was inconsistent with the law. Because the tax and penalty orders rested only on that basis, they could not be sustained, and the assessee was also entitled to refund of the excess amount paid.

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Issues: Whether a transporter carrying goods under the GST regime is required to carry the original tax invoice, and whether tax and penalty could be sustained solely on the ground that the original invoice was not carried during transit.

Analysis: The dispute turned on the documentary requirement during transportation of goods. The relevant provisions governing transit documents did not require the transporter to carry the original tax invoice. The invoice-making provisions contemplated preparation of the invoice in triplicate, with the original meant for the recipient, the duplicate for the transporter, and the triplicate for the supplier. On that basis, the insistence on production of the original invoice was inconsistent with the statutory scheme. Since the tax and penalty orders were founded only on that erroneous basis, they could not be sustained. The petitioner was also entitled to refund of the excess amount paid.

Conclusion: The requirement to carry the original tax invoice was negatived, and the levy of tax and penalty was set aside in favour of the assessee.

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