9911796707
TMI Blog2006 (3) TMI 717X X X X Extracts X X X X X X X X Extracts X X X X ..... i Motors, for demonstration. He did not produce the declaration in form 39 or any sale bill. Therefore, the authorities held that it violated the provisions of section 28A(2) of the Act. The check-post authority issued a show cause notice proposing a penalty of Rs. 1,54,058.40 for violation of clause (b) of sub-section (2) of section 28A of the Act. The person-in-charge of the goods vehicle filed a reply requesting the authorities to reduce the penalty. In the light of the request made for reduction of penalty, the authorities reduced the penalty to Rs. 1,02,706 equal to twice the rate of tax on the value of the goods which were being transported, by means of an order dated August 29, 2001. The penalty was paid without protest and the vehicle was released. Thereafter, the said order was challenged before the Joint Commissioner of Commercial Taxes, Davanagere, who on reconsideration of the entire material dismissed the same. Aggrieved by these two orders the respondent preferred a second appeal before the Tribunal. The Tribunal held the goods were not accompanied by any documents, is only a technical violation. Since the said goods in any event could not be sold without nec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t or the Commissioner consider it necessary that with a view to prevent or check evasion of tax under this Act in any place or places in the State, it is necessary so to do, they may, by notification, direct the establishment of a checkpost or the erection of a barrier, or both, at such place or places as may be notified. (2) The owner or person-in-charge of a goods vehicle or a boat, shall (a) carry with him a goods vehicle record, a trip sheet or a log book, as the case may be; and (b) carry with him a bill of sale or a delivery note obtained from the prescribed authority or such other documents, containing such particulars as may be prescribed, in respect of the goods other than those mentioned in sub-clause (c) carried on the goods vehicle or boat; and (c) carry with him in addition to a bill of sale, a delivery note obtained from such authority containing such particulars as may be prescribed, if the goods carried in the goods vehicle or boat are arecanut, cardamom, cashew, coconut, coffee, copra, cotton, edible oil including vanaspathi, iron and steel, liquor, oil seeds, pepper, rectified spirit, rubber, timber or such other goods as may be notified by the Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e deems it necessary, direct the owner or person-incharge of the goods vehicle to take it to the nearest check-post or police station and such owner or person-in-charge of goods vehicle shall comply with such direction. Explanation. . . . The aforesaid provision provides for establishment of check-post or barrier and inspection of goods while in transit with the intention to prevent or check evasion of tax under the Act. The owner or the person-incharge of a goods vehicle shall carry with him a goods vehicle record, a trip sheet or a log book, a bill of sale or a delivery note obtained from the prescribed authority or such other documents while carrying the goods in the vehicle. Clause (d) of sub-section (2) of section 28A makes it mandatory for such owner or person-in-charge to report at the first check-post or barrier situated on the route and produce the documents referred to above and obtain seal of such officer affixed thereon and in respect of a bill of sale, shall give one copy thereof and in respect of a delivery note, shall give a copy marked thereof as original to such officer and carry and retain with him the other copy until termination of movement of the goods. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... showing the title of the goods, or legal possession of the goods which are being transported. If those documents are available, the question of producing such other documents, in place of or in substitution of those documents would not arise. The whole object being to prevent evasion of sales tax, the authorities want to know the dealer to whom the said goods belong to, and whether he had paid tax. In our view a distinction has to be made between transportation of goods for commercial purposes and for personal purposes. In respect of commercial purposes, the goods shall be accompanied by the documents referred to supra and there is no escape from complying with the mandatory requirement of law. In fact, a Division Bench of this court in the case of Supertronix v. State of Karnataka [2002] 126 STC 275, dealing with a similar situation has held that, the goods of an individual who is not carrying on the trade in household articles, are not covered by any provision of the Act and it cannot be considered that the provisions of section 28A are applicable to such transfer of goods from one place to another. Therefore, if an owner or a person-in-charge of a vehicle is transporting goods, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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