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TMI Blog1998 (7) TMI 653X X X X Extracts X X X X X X X X Extracts X X X X ..... Petitioner made arrangements to transport the said materials through Shreeji Transport Corporation. The said transporter did not make available a suitable vehicle until August 18, 1992. The goods were despatched on August 18, 1992 along with the bill. The vehicle left the petitioner s factory at 4.30 p.m. Before the vehicle could leave Bangalore, it developed some mechanical problems and in those circumstances, the vehicle was brought back to Bangalore for repairs. After getting necessary repairs done, the vehicle left and reached Nippani on August 20, 1992 by which time, the validity of the export permit had expired. 3.. The Commercial Tax Officer in-charge of the check-post issued a notice under section 28-A(4) of the Karnataka Sales Tax Act, 1957 (hereinafter referred to as the Act ). Petitioner filed its objections. The Commercial Tax Officerin-charge of the check-post rejected the objections filed by the petitioner and passed an order on August 26, 1992 levying penalty of a sum of Rs. 6,84,000. Aggrieved by the said order, an appeal was filed before the Deputy Commissioner of Commercial Taxes, Bangalore, which was dismissed. Further appeal carried to the Tribunal met with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all be an officer not below the rank of an Assistant Commercial Tax Officer and not higher in rank than an Assistant Commissioner of Commercial Taxes and any other officer not below the rank of a Commercial Tax Inspector as may be empowered by the Commissioner. (3A) Where goods are delivered to a carrier or other bailee for transmission, the movement of the goods shall be deemed to commence at the time of such delivery and terminate at the time when delivery is taken from such carrier or bailee. Where before delivery is taken from him a carrier or bailee to whom the goods are delivered for transmission, keeps the said goods in any office, shop, godown, vessel, receptacle, vehicle or any other place of business or any building or place, any officer empowered to exercise the powers under sub-section (3) shall have power to enter into and search such office, shop, godown, vessel, receptacle, vehicle or other place of business or building or place, and to examine the goods and inspect all records relating to such goods. The carrier or bailee or the person in-charge of the goods and records shall give all facilities for such examination or inspection and shall, if so required, produce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds exigible to tax within or outside the State with a view to avoid payment of tax. Under section 28-A(4) of the Act, officer in-charge of the checkpost or barrier has been authorised to levy a penalty not exceeding the limits specified in sub-section (5) in respect of any contravention of or non-compliance with the provisions of sub-sections (2), (3), (3A) or (3B) of the Act. Subclause (2) enjoins upon the owner or person in-charge of the goods vehicle to carry with him a goods vehicle record, a trip sheet or a log book and a bill of sale or delivery note containing such particulars as may be prescribed in respect of the goods carried in the goods vehicle. Under sub-clause (3), the driver or any other person in-charge of the goods vehicle is required to stop the vehicle on the asking of the officer in-charge of a check-post or barrier and keep it stationary as long as may be required by the said officer to examine the contents in the vehicle and to inspect the records relating to the goods carried. Under sub-clause (3A), the movement of goods is deemed to commence at the time of such delivery of goods to the carrier or bailee for transmission and terminate at the time when deliver ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner or the driver of the goods vehicle was trying to evade the payment of tax under the Act. The only thing found against the petitioner is that it was carrying the goods on the basis of an export permit which had expired. In our view that by itself would not entitle the respondents to penalise the petitioner under section 28-A(4) of the Act. It would not authorise or clothe the check-post officer the jurisdiction under section 28-A. His duty was to ascertain whether the prescribed documents accompanying the vehicle and the goods carried by it had been subjected to tax or not. In case there was any attempt to evade tax, the jurisdiction under section 28-A could be invoked and not otherwise. In our view, the check-post officer had exceeded his jurisdiction. The exercise of jurisdiction under section 28-A(4) of the Act is held to be improper. This Court in Automobile Products of India Limited v. State of Karnataka [1991] 81 STC 414; [1993] 37 KLJ (TS) 44 considered the scope of section 28-A(4) of the Act and it held as follows: It is obvious that the intendment of the section is to prevent the movement of goods exigible to tax within or without the State with a view to avoid pay ..... X X X X Extracts X X X X X X X X Extracts X X X X
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