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TMI Blog2009 (2) TMI 760X X X X Extracts X X X X X X X X Extracts X X X X ..... n of law deserves to be answered in favour of the dealer and against the Revenue. - GSTR No.10 of 1998 - - - Dated:- 16-2-2009 - KUMAR M.M. AND BHALLA H.S. , JJ. The judgment of the court was delivered by M.M. KUMAR J. In pursuance of order dated September 11, 1997, passed by this court in S.T.C. No. 6 of 1996, the Sales Tax Tribunal, Punjab, Chandigarh (for brevity, the Tribunal ), has referred the following question of law, in respect of assessment year 1991-92, for determination of this court: Whether, on the facts and circumstances of the case, the officer in-charge of the check barrier was not empowered under section 14B of the Punjab General Sales Tax Act, 1948 read with rule 3A of the Central Sales Tax (Punjab) Rules, 1957, to check and detain the goods and impose penalty on the ground that it was an inter-State sale and not transfer of goods on consignment basis. According to the statement of facts, the petitioner is a registered dealer at Moga, under the Punjab General Sales Tax Act, 1948 (for brevity, the Act ) and the Central Sales Tax Act, 1956 (for brevity, the CST Act ). The nature of its business is to acquire oil seeds and cotton, which are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itioner, has vehemently argued that according to section 14B(2) of the Act, four documents are required to accompany any consignment, which are to be scrutinised by an officer at the Barrier Check-post. He has maintained that the four documents would be (i) a goods receipt or log book; (ii) Challan or delivery note; (iii) Form No. XXIVA as per the pro forma in the Act; and (iv) Intimation of the consignment to the Assessing Officer under rule 3A of the Central Sales Tax (Punjab) Rules, 1957 (for brevity, the Rules ). The learned counsel has pointed out that the jurisdiction to determine the nature of consignment does not lie with the officer on the check barrier but the same vests entirely in the Assessing Authority. According to the learned counsel if such a course is permitted then there would be complete chaos at the check-post and every consignment would be subjected to suspicion. The whole assessment procedure would be undertaken at the check-post itself. He has referred to the findings recorded by the Tribunal at page 36 concluding that the intention of the appellant is to send the goods on consignment whereas the documents accompanying the goods along with the details me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d assessment order (mark A ) that all transfers to branches and appointed agents outside the State of Punjab were assessed as consignments sales and not as inter-State sales. The consignment in question, namely, the consignment covered under Challan No. 245, vide Consignment Note No. 0304, dated July 8, 1991 in respect of bill of Rs. 3,03,175 was also assessed as consignment sale on the basis of books of account and record produced before the Assessing Authority, Moga. The assessment order has attained finality. Secondly we find substantial merit in the submission of Mr. Nehra that the officer in-charge at the check-post would be deprived of jurisdiction after he finds that requisite documents have been submitted and prima facie there is nothing on record to suspect the authenticity of information given therein. In the present case the dealer has complied with section 14B(2) and (6) of the Act which mandates as under: 14B. Establishment of cheek-posts or information collection centres and inspection of goods in transit. (1) . . . (2) The owner or person in-charge of a goods vehicle shall carry with him a goods vehicle record, a trip sheet or a log book, as the case may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th him (a) goods vehicle record or in other words a trip sheet or a log book; (b) a goods receipt; (c) a challan or delivery note containing prescribed particulars; form No. XIV-A as per pro forma of the Act; and an intimation of the consignment to the Assessing Officer as per the requirement of rule 3A of the Rules showing that the dealer is selling the goods outside the State or within the State. If the aforesaid documents are shown and found authentic then no further steps are required to be taken by the officer in charge of a check-post. However, as per provisions of sub-section (6), if the officer in-charge of the check-post or information collection centre has reason to suspect that the goods under transport are meant for trade and not covered by proper and genuine documents or for other reasons finds that the person transporting the goods is attempting to evade payment of tax then for reasons to be recorded in writing, a detention order of goods along with vehicle could be passed and the goods have to be released on executing a bond with sureties in the prescribed form or furnishing a security or even bank guarantee, etc. The expression reason to believe used in sub-sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation so gathered by the Check-post Officer could at best be utilised to bring to tax by the concerned authority at Bangalore where M/s. South India Automotive Corporation Limited would be a registered dealer. Any mistake made as claimed, as we have already expressed, cannot clothe the Check-post Officer with jurisdiction to do something which he was not expected to do under the provisions of section 28A of the Act. His job was to ascertain whether the prescribed documents accompanied the vehicle and the goods which in turn were liable to tax under the Act. Anything else he did would be without jurisdiction and we have no hesitation to state, that on account of his total misdirection, there was improper exercise of jurisdiction and the order of the Appellate Tribunal, the first appellate authority as well as Check-post Officer are, therefore, liable to be quashed and they are accordingly quashed. When the facts of the present case are examined in the light of the aforesaid observations then it becomes evident that the order of penalty passed by the Officer in-charge of the check-post, dated July 11, 1991 and consequential order passed by the Appellate Authority as well as by th ..... 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