TRANSIT PASS UNDER TAMIL NADU VALUE ADDED TAX ACT, 2006

[Mr. M. GOVINDARAJAN]

Section 70 of the Tamil Nadu Value Added Tax Act, 2006 (‘Act’ for short) deals with the issue of transit pass.  Section 70(1) (a) provides that when a goods vehicle carrying any goods mentioned in the Sixth Schedule, coming from any place outside Tamil Nadu and bound for any other place outside the State, passes through Tamil Nadu, the owner or other person-in-charge of such goods vehicle shall obtain a transit pass in the prescribed format and in the prescribed manner from the officer-in-charge of the first check post or barrier, after its entry into the State.

 The Sixth Schedule contains the following goods:

• Diesel engineers;
• Marbles;
• Raw rubber;
• Refrigerators, air conditions, air coolers and water coolers;
• Washing machines;
• Alcoholic liquors of all kinds of human consumption other than toddy and arrack;
• Foreign liquors, that is to say, wines, spirits and beers imported into India from foreign countries and dealt with under the Indian Tariff Act, 193 (Central Act 32 of 1934) or under any other law for the time being in force relating to the duties of customs on goods imported into India;
• Kerosene;
• All types of plastic granules and plastic raw materials;
• Petrol with or without additives;
• High speed diesel oil;
• Light diesel oil.

Rule 15 (17) (a) provides that the owner or other person in charge of a goods vehicle carrying the goods specified in the sixth schedule to the Act or the seller or consignor or transferor of the goods shall apply for transit pass in Form LL, in triplicate, to the officer in charge of the first check post or barrier to the assessing authority who is the head of the assessment circle, having jurisdiction over the place from where the goods are sold or consigned or transferred and in the absence of head of assessment circle, any other officer authorized by the territorial Deputy Commissioner.

Rule 15 (17) (b) provides that the officer-in-charge of the check post of barrier shall after examining the application and after making such enquiry as he or it deem necessary, issue the transit pass in Form LL. The Officer-in-charge of the check post of barrier or the assessing authority shall retain the original with himself or itself and give two copies to the owner or other person in charge of the goods, vehicle or the seller or consignor or transferor of goods. The seller, consignor or transferor may also generate transit pass in Form LL electronically. The seller or consignor or transferor of goods shall retain one copy of the electronically generated transit pass with himself and give two copies to the owner or other person in charge of the goods.

Rule 15(17) (C) provides that the transit pass will specify the time within which the goods vehicle has to cross the last check post or barrier.   The maximum time to be so fixed shall be 24 hours up to a distance of 300 kms from the first check post or barrier to the last check post or barrier; 48 hours for a distance exceeding 300 kms, but not exceeding 600 kms from the check post to the last check post and 72 hours for a distance exceeding 600 kms from the first check post to last check post.

Section 70(1)(b) of the Act provides that the owner or other person in charge of the goods vehicle shall deliver within the prescribed period, the transit pass to the officer in charge of the last check post or barrier, before the exit of the goods vehicle from Tamil Nadu. Rule 15 (17) (d) provides that the owner or other person in charge of goods vehicles shall allow the officer in charge to inspect the documents and goods in order to ensure that the goods being taken out of Tamil Nadu are the same for which the transit pass has been obtained.   The officer-in-charge of the last check post or barrier shall acknowledge the receipt of the transit pass on the triplicate copy of the transit pass. The officer-in-charge of the last check post or barrier shall have powers to unload and search the contents of the goods vehicle to ensure that the goods being moved out of Tamil Nadu are the same which the transit pass is obtained. Rule 15 (17) (f) provides that the officer-in-charge of the last check shall intimate the delivery of transit pass to the officer-in-charge of first check post indicating the variation, if any noticed between the quantity or description of goods mentioned in the transit pass issued.

Section 70 (1) © provides that if the owner or other person in charge of the goods vehicle fails to take transit pass it shall be deemed that the goods carried have been sold within Tamil Nadu by the owner or person in charge of the goods vehicle, and such owner or person in charge of the goods vehicle shall, notwithstanding anything contained in Section 3, be jointly and severally liable to pay tax in accordance with the provisions of this Act, irrespective of the quantum of turnover and also penalty which shall be 150% of such tax. Where the goods carried by such goods vehicle are, after their entry into Tamil Nadu transported outside the Tamil Nadu by any other vehicle or conveyance, the onus of proving that the goods have actually moved out of Tamil Nadu, shall be on the owner or person in charge of the goods vehicle who originally brought the goods into Tamil Nadu.

In a case where a goods vehicle owned by a person is hired for transportation of goods by some other person, the hirer of the vehicle shall, for the purposes of this section be deemed to be the owner of the goods vehicle.

Rule 15(17) (g) provides that if for any reason, the goods vehicle after its entry into Tamil Nadu is not able to move out of Tamil Nadu within the time specified in the transit pass, for the reasons beyond the control of the owner or other person in-charge of the goods vehicle, such person shall, seek extension of time from-

• The officer who issued the transit pass; or
• Any officer empowered to issue that transit pass; or
• The assessing authority of the area where the vehicle is stationed at the time of seeking extension of time;

The officer may after examining the reasons for delay and after making such enquiry as he deems fit, extend the time limit specified in the transit pass.

Section 70(2)(a) provides that when any goods specified in the 6^th schedule are sold or consigned or transferred by any goods vehicle to another State from any place within Tamil Nadu the seller or consignor or transferor of the goods shall obtain a transit pass in the prescribed form and in the prescribed manner, from the assessing authority having jurisdiction over the place from where the goods are sold or consigned or transferred to other States.  

Section 70(2)(b) provides that the seller or consignor or transferor of the goods shall deliver or cause to be delivered, within the prescribed period, the transit pass to the officer-in-charge of the last check post or barrier, before the exit of the goods vehicles from Tamil Nadu.

Section 70 (2)(C) provides that if the seller or consignor or transferor of the goods fails to comply with clause (b), it shall be deemed that the goods carried thereby have been sold within the State and liable to pay tax in accordance with the provisions of this Act, irrespective of the quantum of turnover and also penalty which shall be 150% of such tax.