Use of Double-Side Carbon is a Mandatory Requirement while filing delivery note: Kerala HC [Read Judgment]

In a recent decision, the single bench of the Kerala High Court has opined that under Rule 58(16) of KVAT Rules, using double-side carbon is a mandatory requirement while filing delivery notes. Therefore, dealers/sellers of Kerala are bound to follow such condition.

In the instant case, the officer imposed penalty on the assessee for the reason that on verification of the accompanying documents, double side carbon has not been used while filling the delivery note.Consequently, the vehicle was detained and passed an order of penalty against the assessee on ground of evasion of payment of tax. Without availing the statutory relief, the assessee approached the High Court impugning the order.

The single bench observed that the use of double side carbon in Kerala is because of an amendment made to sub rule (16) of Rule 58 of KVAT Rules whereas in Tamil Nadu, there is no such rule for use of double side carbon. If the Kerala Rules prescribe a particular format, transporters/dealers are bound to comply with the same. The imposition ofpenalty is justified if it had been imposed on that basis.

However, the petition was dismissed with a direction to the assessee to avail statutory remedy.

Read the full text of the Judgment below.