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TMI Blog1970 (11) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... of Madras towards the border of the State of Kerala was when searched by the Check Post Officer found to carry 85 bags of foodstuffs, 45 bags of maida, 20 bags of flour and 20 bags of khandasari sugar. The driver of the motor lorry was found to carry with him a bill of sale and a delivery note which covered 85 bags of flour. On the ground that without a bill of sale or delivery note maida and khandasari sugar were attempted to be transported, and suspecting that there was an attempt at evasion of sales tax, the Check Post Officer by order dated March 2, 1965, confiscated the goods and gave an option to M/s. K.P. Abdulla & Bros., the owners of the goods, to pay Rs. 1,000 as penalty in lieu of confiscation. The owners of the goods then moved ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed, which are in the possession of such driver, or other person in charge, who shall, if so required, give his name and address and the name and address of the owner of the vehicle or boat as well as those of the consignor and the consignee of the goods. (3) The officer in charge of the check post or barrier, or the officer empowered as aforesaid shall have power to seize and confiscate any goods which are under transport by any vehicle or boat and are not covered by, (i) a bill of sale or delivery note, (ii) a Goods Vehicle Record, a Trip Sheet or a Log Book, as the case may be, and (iii) such other documents as may be prescribed under sections Provided that before ordering confiscation the officer shall give the person affecte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate in respect of matters which may fairly and reasonably be said to be comprehended therein: see The United Provinces v. Mst. Atiqa Begum and Others [1940] F.C.R. 110., Navinchandra Mafatlal v. The Commissioner of Income-tax, Bombay City [1954] 26 I.T.R. 758 (S.C.); [1955] 1 S.C.R. 829., and Balaji v. Income-tax Officer, Special Investigation Circle [1961] 43 I.T.R. 393 (S.C.); [1962] 2 S.C.R. 983. A taxing entry therefore confers power upon the Legislature to legislate for matters ancillary or incidental including provisions for preventing evasion of tax. Sub-sections (1) and (2) of section 42 are intended to set up machinery for preventing evasion of sales tax. But, in our judgment, the power to confiscate goods carried in a vehic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ower under sub-section (3) of section 42 cannot be said to be ancillary or incidental to the power to legislate for levy of sales tax. The High Court was of the view that the question which fell to be determined was concluded by the judgment of this court in the Commissioner of Commercial Taxes and Others v. R.S. Jhaver and Others [1967] 20 S.T.C. 453 (S.C.); [1968] 1 S.C.R. 148., That case arose under section 41(2) of the Madras General Sales Tax Act (1 of 1959), and this court struck down the power conferred under the Madras General Sales Tax Act, 1959, upon the officer of the Government to seize such accounts, registers, records or other documents of the dealer as he may consider necessary, if he has reason to suspect that any dealer is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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