M/S Dozoco (INDIA) PVT. LTD. vs. The State Of Madhya Pradesh
Held
The Court held that the issue of wrong mention of the destination address on the invoice of the consignee is no longer res integra, in view of earlier decisions of this Court in WP. No.12913/2020 and WP. No.6118/2021. These decisions derived strength from Circular No.64/38/2018-GST dated 14.09.2018. Consequently, the impugned order of penalty dated 23.10.2021 and the appellate order dated 03.02.2023 were set aside. The respondents were directed to consider the case of the petitioner and take a decision on the question of penalty after taking into account the contents of Circular No.64/38/2018-GST. The ratio decidendi is that a clerical error in the destination address on an invoice, when addressed in light of the relevant circular and prior judicial pronouncements, should not automatically lead to a penalty.
Facts
The petitioner, M/s Dozoco (India) Pvt. Ltd., filed a writ petition challenging an order of penalty dated October 23, 2021, and an appellate order dated February 3, 2023. The dispute arose from a wrong mention of the destination address on the consignee's invoice. The petitioner contended that this was a clerical error. The respondents are the State of Madhya Pradesh and various tax authorities. The petition was admitted for hearing by the High Court of Madhya Pradesh.
Key Issues
1. Whether the wrong mention of the destination address on the invoice of the consignee constitutes a violation of GST provisions warranting penalty, considering Circular No. 64/38/2018-GST dated 14.09.2018? Petitioner's argument: The petitioner argued that the issue of wrong mention of the destination address on the invoice is no longer res integra, citing previous decisions of the High Court in WP. No.12913/2020 and WP. No.6118/2021. These decisions, in turn, relied on Circular No.64/38/2018-GST. Revenue's argument: The learned counsel for the State, after seeking instructions, did not dispute the petitioner's contention regarding the applicability of previous High Court decisions and the relevant circular.
Sections Cited
Circular No.64/38/2018-GST
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF MADHYA PRADESH AT JABALPUR BEFORE HON'BLE SHRI JUSTICE SHEEL NAGU & HON'BLE SHRI JUSTICE HIRDESH ON THE 3rd OF MAY, 2023 WRIT PETITION No. 5838 of 2023 BETWEEN:- M/S DOZOCO (INDIA) PVT. LTD. THROUGH ITS AUTHORIZED SIGNATORY SHRI RAKESH KUMAR TIWARI S/O SHRI RAMESH PRASAD TIWARI OCCUPATION SERVICE, A PRIVATE LTD. COMPANY, INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT, HAVING ITS PRINCIPAL PLACE OF BUSINESS AT HOUSE NO. 5, DOZOCO (INDIA) PVT. LTD. RADHA SWAMI FARM HOUSE, CIVIL LINES, KOTHI ROAD, SATNA (MADHYA PRADESH) .....PETITIONER (BY SHRI MUKESH AGRAWAL AND SHRI AYUSH GUPTA - ADVOCATES ) AND 1. THE STATE OF MADHYA PRADESH DEPARATMENT OF COMMERCIAL TAX, THROUGH ITS SECRETARY, VALLABH BHAWAN, BHOPAL (MADHYA PRADESH)
THE COMMISSIONER OF STATE TAX, MADHYA PRADESH, MOTI BUNGALOW, MG ROAD, INDORE (MADHYA PRADESH)
THE ASST. COMMISSIONER, STATE TAX, ANTI EVASION BUREAU, DISTRICT SATNA (MADHYA PRADESH)
THE JOINT COMMISSIONER AND APPELLATE AUTHORITY, STATE TAX DISTRICT SATNA (MADHYA PRADESH) .....RESPONDENTS (BY SHRI A.D. BAJPAI - GOVERNMENT ADVOCATE) 1 Signed by: MOHAMMED MOHSIN QURESHI Signing time: 5/4/2023 1:24:00 PM S
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Madhya Pradesh High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.