Delivery Note cannot be used as Delivery Challan under GST: Jammu & Kashmir HC [Read Order]

The Jammu and Kashmir High Court has held that the delivery note cannot be used as a delivery challan under Goods and Service Tax (GST).

The State Tax Officer had detained the vehicle containing the gold ornaments of the petitioner on the ground that the said goods were accompanied by a delivery note, which was not a valid document for the movement of goods. The Petitioner filed an appeal which was dismissed.

It was argued on behalf of the petitioner that the goods were moving on a 'sale on approval basis'. Since there is no supply, the transport under the delivery note was proper. For requirements under GST, delivery note and delivery challan are the same. Therefore, the same can be used for the movement of goods when there is no supply. Since the Petitioner was in possession of the prescribed document, detention and consequent proceedings are invalid. While dismissing the petition the Court held that there is a distinction between delivery note and delivery challan. A delivery note is a mere document that accompanies a shipment of goods which would have an impact on inventory levels since it decreases delivery stock. But delivery challan is issued while making delivery of goods to the buyer as per Rule 55 read with Rule 138A of the CGST Rules, 2017. The delivery note is neither mandatory nor a prescribed document for transportation. The delivery note is not a substitute for delivery Challan. Therefore, the proceedings against the Petitioner are valid.

To Read the full text of the Order CLICK HERE

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