2017 (3) TMI 1396 - HC - VAT and Sales Tax

Prosecution - tampering with statutory documents - Held that - it is evidently clear that the vehicles, which transported the goods from the State of Kerala, did not carry the goods, when going out of the State. That apart, vehicle numbers in Form-IV issued by the Rubber Board have been tampered. Further, the time schedule fixed in the transit passes have not been adhered to and the goods did not pass through the designated check posts as mentioned in the transit passes - petition dismissed - decided against petitioner.

Summary

Issues:
Transport of goods with altered vehicle numbers, tampering of statutory documents, tax evasion, jurisdiction under Article 226 of the Constitution of India.

Analysis:

1. Altered Vehicle Numbers and Tampering of Statutory Documents:
The Transport Contractors engaged by Consignors at Kerala for transporting raw rubber to Calcutta and Bihar altered vehicle numbers in Form-IV issued by the Rubber Board. This alteration involved substituting the registration numbers of lorries assigned by the State of Andhra Pradesh for the original vehicle numbers. Such tampering of records issued by the Rubber Board, which are statutory documents, constitutes a criminal offense and renders the petitioner liable for prosecution. The vehicles did not carry the goods when exiting the State, and the time schedules and designated check posts mentioned in transit passes were not adhered to.

2. Tax Evasion and Legal Proceedings:
Upon entering Tamil Nadu, the vehicles were detained at a check post different from the one specified in the transit passes. Consequently, a demand for tax, surcharge, and penalty was made on the petitioners. Despite the petitioners' explanation of transshipment and the use of vehicles with Andhra Pradesh registration numbers, their objections were rejected by the Assistant Commissioner of Commercial Taxes and subsequently by the Commissioner of Commercial Taxes. The petitioners then approached the High Court under Article 226 of the Constitution of India challenging the orders passed by the tax authorities.

3. Court's Decision and Dismissal of Writ Petitions:
The High Court declined to act as a third appellate authority over the tax authorities' factual findings. The Court found that the vehicles did not transport the goods as per the specified routes and timeframes. Consequently, the writ petitions were dismissed. However, considering the petitioners' claim that the goods reached their destinations and taxes were paid in the respective states, the Court allowed the petitioners to approach the tax authorities with proof of tax payment in other states. The tax authorities were instructed to consider the petitioners' representation on its merits and in accordance with the law. No costs were awarded, and the connected Writ Miscellaneous Petitions were closed.

In conclusion, the High Court's judgment upheld the tax authorities' decisions, emphasizing the importance of adhering to statutory requirements in the transport of goods and the consequences of tampering with official documents. The Court's decision highlighted the limited scope of judicial review under Article 226 and provided the petitioners with an opportunity to present evidence of tax payment in other states for further consideration by the tax authorities.