TaxTMI 
TaxTMI 
sir. Goods were sent on demo/trial from and were accompanied with DC & Eway bill but officer demands Tax invoice! and levied penalty. what to be done ? is the officer correct? any provisions for my defence available with case law if taken for appeal.
documents necessary for goods sent for trial/demo
05 Mar 2023 
7 Replies 
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Transportation without invoice permitted under Rule 55; delivery challan suffices for demo/trial when supported by evidence.
Officer demanded a tax invoice and imposed penalty despite goods being sent for demo/trial with a delivery challan and e way bill. The GST regime permits transportation without issue of invoice for movements not constituting supply; a delivery challan in lieu of an invoice is the operative document. Contesting the demand requires presenting the delivery challan and supporting evidence showing the demo/trial purpose and non supply, and framing these facts in the appeal memorandum. (AI Summary)
Officer demanded a tax invoice and imposed penalty despite goods being sent for demo/trial with a delivery challan and e way bill. The GST regime permits transportation without issue of invoice for movements not constituting supply; a delivery challan in lieu of an invoice is the operative document. Contesting the demand requires presenting the delivery challan and supporting evidence showing the demo/trial purpose and non supply, and framing these facts in the appeal memorandum. (AI Summary)