CHECK POST UNDER THE PROVISIONS OF TAMIL NADU VALUE ADDED TAX, 2006

[Mr. M. GOVINDARAJAN]

ESTABLISHMENT OF CHECK POST:

                        If the Government considers preventing or checking evasion of tax in any place or places they, by notification, direct the setting up of a check post or the erection of a barrier or both, at the place or places as may be notified.   Officers of the Commercial Taxes Department not below the rank of an Assistant Commercial Tax Officer shall be the officer prescribed for this purpose.

                        At every check post or barrier any officer prescribed by the Government may examine the contents in the goods vehicle or board and inspect all documents relating to the goods carried which are in the possession of the driver or other person in charge for the purpose of ascertaining whether there has been any sale or purchase of the goods carried and whether such sale or purchases is liable to tax.   If so whether such tax has been paid or whether the sale or purchase has been properly accounted in the documents.

                        If, on such examination and inspection it appears that the tax has been paid and been properly accounted the said officer shall release the goods vehicle or board with the goods carried.   If any tax has not been paid and the officer is satisfied, after making such enquiry as he deems fit, to prevent the evasion of tax it is necessary to detain the goods he shall detain the goods and direct the driver or any other person in charge of the goods vehicle or boat or the consignor or consignee to pay the tax or to furnish adequate security in Form II.   A bill of sale or delivery note shall be in Form JJ and a goods vehicle record or trip sheet log book.

                        The driver or any other person in charge of the goods vehicle or boat shall, if required give his name and address and the name and address of the owner of the goods and also produce his licence for inspection.

                        If the tax is not paid or security as required is not furnished or the driver is not giving correct information and the officer is satisfied after making such enquiry as he deems fit to prevent the evasion of tax he shall detain the goods either in the check post or elsewhere as long as may reasonably be necessary and shall ascertain the correct name and address of the owner of the goods vehicle or the consignor or consignee of the goods.

                        The said officer may, in his discretion permit the vehicle subject to an undertaking given by the driver that the goods shall be kept in the office, go down or other place within the State belonging to the owner of the goods vehicle and in the custody of such owner and that the goods shall not be delivered to the consignor, consignee or any other persons without the orders of the said officer and the driver shall furnish an authorization from the owner of the goods vehicle authorizing to give such undertaking on his behalf.

                        A copy of the detention order shall be served on the driver along with the order specifying the tax or security to be paid for the release of goods.   The owner of the goods which are subject to speedy and natural decay ordered to be detained shall pay the tax or security ordered to be paid within one month from the date of order.   Otherwise the said officer shall subject to such conditions as may be prescribed, sell such goods in open auction and remit the sale proceeds thereof in a Government Treasury.  Any person entitled to such sale proceeds after deducting the expenses of the sale and other incidental charges and the amount of tax in respect of sale or purchase.

                        If the tax or security is paid the officer shall issue a receipt in the name of the person liable to pay tax specifying also the name and status of the person making such payment and shall release the goods and allow the vehicle or boat to pass.   The Officer shall intimate the details of such collection to the concerned assessing authority within 3 days of such collection.

POSSESSION OF RECORDS:

                        The owner or other person in charge of a boat shall carry with him-

• Bill of sale or delivery or such other documents as may be prescribed; and
• Log book.

Relating to the goods under transport and containing such particulars as may be prescribed and shall submit to such officer the documents or copies thereof within such time as may be prescribed.

                        The owner or other person in charge of a goods vehicle shall carry with him-

• Bill of sale or delivery note or such other documents as may be prescribed; and
• Goods vehicle record or trip sheet.

Relating to the goods under transport and containing such particulars as may be prescribed and shall submit to such officer the documents or copies thereof within such time as may be prescribed.

TRANSIT PASS:

                        When a goods vehicle carrying any goods mentioned in the sixth schedule coming from any place outside the State and bound for any other place outside the state, passes through the state, the owner or the person in charge of such goods vehicle shall obtain a transit pass in the prescribed form and in the prescribed manner from the officer in charge of the first check post or barrier after its entry into the state.  The said pass shall be delivered within the prescribed period to the Officer-in-charge of the last check post or barrier before the exit of the goods vehicle from the state.   If the owner fails to comply with it shall be deemed that the goods carried  have been sold within the State and owner and the person in charge of the vehicle shall be jointly and severally liable to pay tax irrespective of the quantum of turnover and also penalty which shall be 150% of tax.

                        Where the goods after entry into the State, transported outside the State by any other vehicle the onus of proving that the goods have actually moved out of the State, shall be the owner or person in charge of the goods vehicle who originally brought the goods into the State.