Documents to be carried by a person-in-charge of a conveyance under bill to ship to model.

[Pralhad Jadhav]

"A" from Kerala places an order on "B" from Maharashtra for supply of goods directly to customer "C" in Karnataka.

Accordingly, B raises a tax invoice on A for supply of goods with ship to details of C. Parallely, A also raises a tax invoice on C. B per the instruction of A arranges for transport of goods to C and issues an E-way bill with details as present on tax invoice raised on A.

B handsover the copy of the e-way bill and tax invoice (raised on A) to the transporter. The transporter is now intercepted at the border of Karnataka and the flying squad officers are saying that the tax invoice raised by A to C should also be present. Since, tax invoice is not present when the interception is made, submission of same at later stage will not eliminate tax liability and penal consequences.

Dear Experts, your views are requested on the following:

1. Whether the transporter was required to carry the copy of the tax invoice raised by A on C where the movement was caused by B and copy of invoice raised by B on A was also present which provides the details of bill to and ship to party?

2. In case the transporter was required to carry the copy of invoice raised by A on C, and on providing the same after inception, whether tax liability can be raised and penalty can be imposed?

[Sadanand Bulbule]

Plz refer the following:

2023 (7) TMI 418 - SC Order - ADDITIONAL COMMISSIONER GRADE-2 (APPEAL) FIFTH COMMERCIAL TAX & ANR. Versus M/s SLEEVCO TRADERS

Detention of goods alongwith vehicle - generation of two e-way bills - goods was in transit and the delivery was not taken - It was held by Allahabad High Court that In the case in hand once the valid document i.e. e-way bill and tax invoice, builty was accompanying with the goods, therefore the authorities ought not to have drag the petitioner in an unnecessary litigation.

HELD THAT:- This Court is of the opinion that there is no infirmity in the judgment of the High Court, which is correctly appreciated.

 

[KASTURI SETHI]

Sh Sadanand Bulbule Ji,

Sir, Really you are in a new AVATAR in TMI Discussion Forum.

                                       

 

[Pralhad Jadhav]

Thank You Sir.

A small doubt still remains - in the case law shared, at para 12, it is stated that second tax invoice was also shared when the goods reached Kanpur. Considering both the tax invoices and e-way bill were present before reoving officer, Court held that there was no contravention of law. Will this affect my case where second tax invoice is not presented for commercial reasons. 

[Sadanand Bulbule]

"Change is the true spice of life".

So kind of you for inspiring me as usual, Sirji.

[Sadanand Bulbule]

Plz refer the following on "Bill to ship to" transactions:

2025 (8) TMI 1132 - ALLAHABAD HIGH COURT - M/s Kesarwani Traders Versus State of UP And 3 Others

 

[KALLESHAMURTHY MURTHY K.N.]

Sir, 

When goods was moved towards its destination, accompanied by the valid documents of the invoice and e-Way Bill under" bill to ship to", other documents are not warranted for the movement of goods. Hence, the Intercepting authority cannot demand from the original supplier. In case the invoice is raised by A before the time of interception, and produced subsequent to inception, it doesnt warrant the levy of tax and penalty. 

[KASTURI SETHI]

 Sh. Kalleshamurthy Murthy Ji,

 Sir, Well clarified. Chances of doubt are plugged.

[Shilpi Jain]

Also refer to the press release at this link which guides regarding the issuance of EWB in case of Bill to ship to transaction. 

Issues regarding “Bill To Ship To” for e-Way Bill under CGST Rules, 2017

Transporter is required to carry only one set of docs.

AI Summary

Bill-to ship-to documentation: valid invoice and e-way bill accompanying consignment negate need for separate ordering-party invoice.
Where goods move under a bill-to ship-to arrangement, if the consignment is accompanied by a valid tax invoice issued by the consignor and a valid e-way bill showing bill-to/ship-to details, intercepting authorities should not demand the ordering party's separate tax invoice; subsequent production of that secondary invoice, when legitimately issued, should not by itself justify tax liability or penalty.