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TMI Blog1986 (5) TMI 258X X X X Extracts X X X X X X X X Extracts X X X X ..... nsactions in the course of inter-State trade and commerce, consequently the learned counsel for the petitioners has also urged that the penalty imposed upon petitioner No. 1 by an order dated 6th February, 1986 (annexure 1), is without any authority of law inasmuch as the petitioners were not liable to pay any tax. The submission with regard to the vires of the notification dated 28th December, 1985 (annexure 6), is linked with sub-section (2a) and sub-section (3) of section 31 of -- the Bihar Finance Act, 1981 (hereinafter referred to as the Act), as amended by section 9 of the Bihar Finance Act, 1984. Sub-section (2a) and sub-section (3) of section 31 of the Act, as amended by section 9 of the Bihar Finance Act, 1984, have already been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ------------------------------------------ FORM XXVIII-B Form of permit [See rule 42(2) of the Bihar Sales Tax Rules, 1983] (Original-Not transferable) Serial No. (To be filled in by the permit-holder before transport of goods) 1.. Name of dealer to whom the permit is granted with registration certificate number. 2. Name and address of the consignor. 3. Name and address of the consignee. 4. Place of despatch. 5. Designation. 6. Name of, notified railway station/other place, from where delivery is to be taken. 7. Number and date of- (i) Railway receipt (ii) Other document. 8. Description of consignmentName of goods. Value. Quantity. 9. Seller's invoice/forwarding note number and date. 10. Mode of transport (vehicle No.) I/We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le to produce the documents/informations as required under the impugned notification (annexure 6), stands in the danger of having its goods forfeited and, in that view of the matter, the provisions of sub-section (2a) and sub-section (3) of section 31 of the Act as well as the impugned notification (annexure 6) could not be said to be ancillary or incidental to the power of the State to legislate for levy of tax. In order to appreciate the submission advanced by the learned counsel for the petitioners, as already stated above, it is most pertinent to state the fact in brief: Petitioner No. 1 is the driver of truck No. BHA 2464; whereas, petitioner No. 2 is the manager of M/s. Hariyana Transport Company (hereinafter referred to the petiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the prevention of evasion of sales tax is a power incidental and ancillary to the levy of sales tax and falls within entry 54 of List II of the Seventh Schedule of the Constitution. Sub-section (2a) and subsection (3) of section 31 of the Act (as amended by section 9 of the Bihar Finance Act, 1984) provide for only levy of penalty, if there is an attempt to evade the tax due under the Act and, therefore, cannot be held to be without constitutional sanction. These provisions have been made with a view to check evasion and for the purpose of securing the revenue due under the Act. While the liability to pay the tax is only on the dealer in order to make that liability effective and realisable, others who are connected with the transact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Constitution. The requirements, as envisaged under the aforesaid 'sub-sections (2a) and (3) of section 31 of the Act, have been made with the object of checking the evasion of payment of sales tax and therefore these requirements are clearly in Public interest and cannot be regarded as unreasonable restriction on the citizens' fundamental rights. The case ([1971] 27 STC 1 (SC) [Check Post Officer v. K.P. Abdulla and Bros.]) referred to above and relied upon by the learned counsel for the petitioners in support of his submission is clearly distinguishable. The Supreme Court, in that case, was concerned with the question of the vires of section 42(3) of the Madras General Sales Tax Act, 1959, which provided for the seizure and confisca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re being carried by the vehicle. In the case of goods which are sold and are being removed by the vehicle, the carrier has only to satisfy the officer that such goods had been carried in the vehicle under proper documents and that there was no evasion of tax. What has been done in the present case by the officer concerned was only to ascertain that fact. If he failed to do so, he would have failed to discharge his statutory duties. It is, in fact, a verification of that type which was done by the officer concerned in the present case in the discharge of his official duties. In the circumstances, we hold that the submission advanced by the learned counsel for the petitioners (as referred to in the earlier paragraph of this order) is withou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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