Refund

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 September 2011 hi,

our consignment had been detained by the checkpost authorities since the invoice address and delivery address are different. Eventhough the distance between the two was 5 kms only.

Hence we were instructed to pay the penalty alongwith advance tax for that consignment.

Can anyone tell whether we can get the refund of penalty amount and advice me what documents are required to submit to the CTO.

Your reply is most awaited.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
Follow

20 September 2011 Mr Author,
You say that the invoice address and delivery address are different. It is not clear whether the delivery address is of your own or of somebody else.If it is your own,you should proove that the premises of delivery is your own or hired by you. If you are delivering to someother dealer,you should show that you are doing a sale-in-transit,by issuing an invoice and the consignee is a registered one.In this case they should accept a delivery note(Form VAT505)to show that movement of goods to the delivery address has been brought on record and release the goods.Further, if the delivery address is your own branch,prove it by showing your R.C.Furnishing an invoice is enough as per Sec 53(2a), and rule 157 of KVAT Act and rules. There is nothing like payment of advance tax at checkposts.Cheeckpost can levy only penalty,not any tax.Maximum penalty leviable in this case is one and half times the tax applicable.Even if you pay penalty at a checkpost you will have to pay tax again on sale of such goods.By prefering an appeal ,later,you can get the penalty refunded.
MJK