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TMI Blog2017 (1) TMI 1270X X X X Extracts X X X X X X X X Extracts X X X X ..... penalty u/s 51(7)(c) has been imposed? (iv) Whether a dealer who is not registered under the provisions of the Punjab VAT Act 2005 will be a casual trader u/s 31(5) of the Act ibid and for its contravention, any penalty u/s 51(7)(c) can be imposed upon him?" 2. The facts in brief as recorded in the order of the Tribunal are that on 12.01.2008 information was received by ETO(MW) Amritsar from one Shri Gurdial Singh, SHO, GRP, Amritsar that their team had detained one Ankit Mehra who was carrying gold ornaments while travelling by Dadar Express train from Amritsar to Patiala. The ETO went to Beas Station and checked Ankit Mehra under Section 51 of the Punjab Value Added Tax Act, 2005 (for short 'the Act'). Gold ornaments were found from a bag in his possession. The examination of the goods revealed that these were not covered by proper and genuine documents as required under Section 51(2) of the Act. The gross weight of the gold ornaments was 8,135.320 gms and net weight 8,060.820 gms. The value thereof was assessed to be Rs. 76,61,246/-. The detaining officer issued show cause notice to the owner of the goods under Section 51(6)(b) of the Act. None appeared despite proper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charge of a goods vehicle', it means that any person selling goods within or outside the State in the course of inter-state trade or commerce has to furnish or cause to be furnished a declaration with such particulars, as may be prescribed. As per Rule 63 of the Punjab Value Added Tax Rules, 2005 (for short "the Rules") the declaration referred to in the first proviso to Section 51(2) of the Act shall contain the particulars as prescribed in Form VAT 12. Such declaration was to be given at the nearest Information Collection Centre (for short "ICC") or Check Post. Though there was an ICC outside Railway Station, Ludhiana, no such declaration was furnished. The argument of the Counsel for the appellant that he be considered to be a casual dealer under Section 31 of the Act or that he be treated to be an unregistered dealer, liable to penal action under Section 52 and 53 of the Act was rejected. It was held that as the goods were intercepted in transit, there was clear violation of the first proviso of sub-section (2) of Section 51 of the Act. Accordingly, the appeal was dismissed. 5. It is this order of the Tribunal which has been impugned in the present appeal. 6. Sh. Sandeep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a goods vehicle or not. Hence, if the declaration in terms of the proviso is not furnished, the the checking, detention and imposition of penalty etc. on such a person would be legal and valid even if the goods were not being transported in a goods vehicle. 9. We have heard Ld. Counsel for the parties and perused the record. 10. On the facts of the aforesaid appeals, the following substantial question of law arises for decision: Whether the use of the term 'person' in the first proviso to Section 51(2) as distinct from 'the owner or person in charge of a goods vehicle' in Section 51(2) foists the obligation in terms of the proviso to furnish or cause to be furnished a declaration in the form prescribed, on any person selling goods in the course of inter-State trade or commerce even when such goods are not being transported in a 'goods vehicle' ? 11. Section 51 of the Act as it existed at the relevant time is reproduced below:- "S.51. ESTABLISHMENT OF INFORMATION COLLECTION CENTRES (1) If, with a view to prevent or check avoidance or evasion of tax under this Act, the State Government considers it necessary so to do, it may, by notification, direct fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case may be, and shall furnish in triplicate a declaration mentioned in sub-section (2) alongwith the documents in respect of the goods carried in such vehicle before the officer Incharge of the check post or information collection centre. The officer Incharge shall return a copy of the declaration duly verified by him to the owner or person Incharge of the goods vehicle to enable him to produce the same at the time of subsequent checking, if any: Provided that where a goods vehicle bound for any place outside the State passes through the State, the owner or person Incharge of such vehicle shall furnish, in duplicate, to the officer Incharge of the check post or information collection centre, a declaration in respect of his entry into the State in the prescribed form and obtain from him a copy thereof duly verified. The owner or person Incharge of the goods vehicle, shall deliver within forty-eight hours the aforesaid copy to the officer Incharge of the check post or information collection centre at the point of its exit from the State, failing which, he shall be liable to pay a penalty to be imposed by an order, made by the officer incharge of the check post or information c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . (b) If the owner or the person Incharge of the goods has not submitted the documents as mentioned in sub-sections (2) and (4) at the nearest check post or information collection centre, in the State, as the case may be, on his entry into or before exit from the State, such goods shall be detained alongwith the vehicle for a period not exceeding seventy-two hours subject to orders under clause (c) of sub-section (7). (7) (a) The officer detaining the goods under sub-section (6), shall record the statement, if any, given by the consignor or consignee of the goods or his representative or the driver or other person Incharge of the goods vehicle and shall require him to prove the genuineness of the transaction before him in his office within the period of seventy-two hours of the detention. The said officer shall, immediately thereafter, submit the proceedings alongwith the concerned records to the designated officer for conducting necessary enquiry in the matter; (b) The designated officer shall, before conducting the enquiry, serve a notice on the consignor or consignee of the goods detained under clause (a) of sub-section (6), and give him an 45 opportunity of being heard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enalty imposed, has been realized or the 46 enquiry officer orders release of the detained goods after enquiry, whichever is earlier." 12. It is not denied or sought to be argued by the respondent-State, that the reference in Sections 51(2) and 51(4) of the Act being only to 'the owner or person In charge of a goods vehicle', there is no power in terms of these provisions to detain the goods being transported otherwise than in a 'goods vehicle'. In view of the specific exclusion of 'vehicle running upon fixed rails' from the definition of 'goods vehicle' there would be no jurisdiction to detain goods being transported on a railway train as held by this Court in Indo Arya Central Transport Ltd.'s case (supra) 13. The question is whether the first proviso to Section 51(2) leads to a different conclusion? 14. In our view the answer has to be in the negative. 15. The first proviso has already been reproduced above. As per Section 51(2) of the Act 'the owner or person in charge of a goods vehicle' is required to carry with him a goods vehicle record, goods receipt, a trip sheet or a log- book, a sale invoice or bill or cash memo etc in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds, for such a person transporting goods other than in a goods vehicle, (may be carrying them on his own person), cannot be required to carry all the documents contemplated in Section 51(2) of the Act, most of which namely goods vehicle record, goods receipt, trip sheet or log book are in relation to a goods vehicle only. Accordingly, it has to be held that the proviso also necessarily applies to goods being carried in a goods vehicle though being carried for the purpose specified in the proviso i.e., being sold within or outside the State, in the course of inter-state trade or commerce. 20. Thus, merely the use of the term 'person' in the proviso instead of the term 'owner or person in charge of the goods vehicle' would not support the conclusion of the Tribunal that it applies to any person selling goods within or outside the State in the course of inter-state trade or commerce even though such goods are not being transported in a goods vehicle. 21. This conclusion is further fortified when provisions of Rule 63 and 64 of the Rules are taken note of. 22. Rules 63 and 64 of the Rules fall in Chapter -IX titled `Transportation of Goods'. Rule 63 is titled as ` ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duplicate copy of VAT invoice or retail invoice or delivery challan and trip sheet or log book or way bill and goods receipt; (b) a copy of Form VAT-12 or Form VAT-35, as the case may be; and (c) duplicate foil of Form VAT-36: Provided that where Form VAT 36 is not required to be submitted under these rules, the officer in charge shall also retain copies of the documents as mentioned in clause (a) and (b)." At Sr. No.6 of the Form VAT-12, the name and address of the Transport Company is required to be entered. At Sr. No. 7 the GR/TR/Way Bill/Log Book/Trip Sheet Number is to be entered. At Sr. No. 8 the GR/TR/Way Bill/Log Book/Trip Sheet date is to be filled. At Sr. No.9, the Vehicle Number is required. If the proviso were meant to cover a person transporting goods otherwise than in a goods vehicle, then there was no need for Form VAT 12 to contain these columns with reference to the Transport Company, GR/TR/Way Bill/Log Book/Trip Sheet Number and date and the Vehicle number. 23. Further, sub- rule (1) of Rule 64 of the Rules which requires submission of documents and Forms at the Information Collection Centre, sub-rule (3) which deals with charging sums for issuing com ..... X X X X Extracts X X X X X X X X Extracts X X X X
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