GOVERNMENT OF ANDHRA PRADESH

COMMERCIAL TAXES DEPARTMENT

PROCEEDINGS OF THE

AUTHORITY FOR CLARIFICATION AND ADVANCE RULING

(Under Section 67 of APVAT Act, 2005)

Present: Sri G. Lakshmi Prasad, Addl.Commissioner(Policy)

Sri D.Venkateswara Rao, Jt. Commissioner (Legal)

Sri V. Harshavardhan Jt.Commissioner ( Enft.)

*****

ADC Order No.23 Dated 16th May, 2011.

A.R.Com/ 18 /2011. Dated 16th May, 2011.

Ref:-1) CCT' PMT/P&L/A.R.Com/2005, Dated 13-04-2005.

ORDER:

I. M/s. Bawa Fertlizers Company, Basheerbagh, Hyderabd (TIN 28100188274) have filed an application and sought clarification and advance ruling on the following items under Section 67 of APVAT Act, 2005 read with Rule 66(2)(i) of APVAT Rules, 2005 along with the application fee of Rs.1,000/-

II. They sought clarification on the following:

Whether the tax invoice is to be accompanied with way bill along with truck or not as per VAT Act and Rules.

III. The applicant submitted the following documents:

Write up on the issue.

IV. Mr. Mohd. Usman, Partner appeared for hearing and explained the case.

V. The issue has been examined with reference to the provisions of the APVAT Act and Rules and ruling is given as under:

VI. The applicant states that they are doing business in fertilizers and insecticides, whenever the stocks are available they receive delivery order in their firms name and lift the stocks from the go-downs and delivery the stocks to their sub-dealers on their way bills and delivery cum proforma invoices which are prepared manually. After receiving the duplicate challan cum proforma invoice they prepare computerized credit/tax invoice at their office at Hyderabad.

Whenever they are sending the stocks to their sub dealers the officers of the C.T. Department at the time of vehicular check are at the Check Posts they are insisting for tax invoice or else to pay penalty as applicable as per the VAT Act. Hence sought for the clarification. Whether the tax invoice is to be accompanied with way bill along with truck or not as per VAT Act and Rules.

In this case, the applicant seeks clarification as to whether tax invoice should necessarily accompany the way bill, while transporting any goods from one place to another. In this regard, it should be noted that transport of goods from one place to other may take place under several circumstances. Some of these are listed in the prescribed Form of way bill under APVAT Act. Under Sec.48 of the APVAT Act, the goods under transport by a goods vehicle / vessel shall accompany by a bill of sale or tax invoice or delivery note. Rule 55 of the APVAT Rules prescribes the Form 600 or Form X (way bill) as one of the documents that should accompany the goods under transport. A harmonious reading of these two provisions clearly indicates that transport of any goods should be covered by a way bill and also a sale bill or delivery note.

In case, the transport is in pursuance of a concluded sale, the document that should accompany the transport is sale bill, whereas in cases, in which the transport is in pursuance of sale yet to be concluded or when there is no sale and the transport is only between the principal and agent or between the shop and the godown or between one godown and another godown, the document that should accompany the goods along with the way bill is the delivery note.

NOTE:- An appeal against this proceedings can be filed before the Sales Tax Appellate Tribunal, A.P. Hyderabad within 30 days of this ruling.

Jt. Commissioner