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2015 (3) TMI 477 - HC - VAT and Sales TaxDetention of transit - notice was issued for reason of an earlier transit pass not surrendered at the exit check post - Held that:- though a notice under Section 47(2) was not issued, effectively the vehicle was detained at the check post, for reason of an earlier transit-transport having not been properly registered at the exit check post. On failure to surrender a transit pass at the exit check post, necessarily, the department is entitled to take proceedings under Section 48(3) of the Act deeming, an owner or cosignor of the goods or owner or driver or the person in charge of the vehicle or goods, to be an assessee in default, presuming the sale to have been made within the State itself. The statute does not permit prevention of further transport in the same vehicle or detention of goods on that count. Admittedly the present consignment does not suffer any defect in transport and no notice on that count was issued. But for all practical purposes the goods and vehicle were detained, at the check post. If such detention is made, especially without notice under Section 47(2), that would fall foul of the statutory prescriptions, and violate Article 301 of the Constitution of India. The elaborate provisions dealing with transport of goods, and the prescription of documents to accompany such transport, intra-State and inter-State, is definitely to ensure revenue collection. It should also further trade and commerce and facilitate smooth movement of goods within and between the States. It is clear that Ext.P1 notice has been issued against the driver of the vehicle, who was in charge of the subsequent transport and 48 (3) deems; only a driver or owner or person, who was in control of the vehicle or the goods, at the time when the delinquency is noticed, to be an assessee in default. However, since, the registered owner of the vehicle, whose vehicle was used in the earlier transportation also, is before this Court, it is directed that the registered owner shall appear before the Commercial Tax Officer, Kasargod on 25.07.2014 when the registered owner shall be issued with a proper notice by the officer, under Section 48(3) and proceedings shall be carried on, against the petitioner or any other person who are held to be jointly and severally liable, as per the provisions. Ext.P1 cannot be given effect to if the driver of the subsequent consignment was not the one who carried the earlier one and proceedings shall be proceeded with against the petitioner herein, if he appears or otherwise the proceedings shall be on notice. The Department would be reserved the liberty to initiate proceedings simultaneously against the owner of the goods also; since the liability is joint and several. - Petition disposed of.
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