TMI Blog1985 (10) TMI 268X X X X Extracts X X X X X X X X Extracts X X X X ..... the Sales Tax Act, 1948, was enacted to provide for the levy of a tax on the sale or purchase of goods in U.P. and since there was neither any sale nor purchase of the goods carried by the truck in question inside the State of Uttar Pradesh. Further neither any tax nor any penalty was leviable. The provisions of the Sales Tax Act did not provide for levy of penalty under section 15-A of the Act. It was further contended that the imposition of penalty under section 15-A(1)(r) and section 14(1)(e) of the Act were bad in law, their vires were also questioned. The petitioner engaged trucks for carrying coal from the States of Bihar and Bengal to the State of Madhya Pradesh and its trucks travel over the State of Uttar Pradesh. The trucks gen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The driver of the vehicle in his explanation on oath stated that he was unable to give answer and agreed to pay the penalty. On his paying the amount of penalty imposed he was allowed to proceed. However, in regard to truck No. UPF 4925 it was stated on the basis of the record available with respondent No. 4, the Sales Tax Officer, exit check post, that neither the transit pass of the above vehicle nor the vehicle with goods was detained between 30th May, 1984, to 30th June, 1984, at the check post. However, it was stated that if the vehicle along with the goods and the transit pass issued by the entry check post does not reach the exit check post, there is a presumption that the goods carried on the vehicle were sold in the State of Utta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d business within the meaning of article 19(1)(g) of the Constitution. We are not impressed by this line of argument. It is well-settled that the power to levy tax also empowered the authorities under the Act to do all, i.e., necessary to prevent evasion of sales tax. Any goods entering the State of Uttar Pradesh from another State in the Indian Union would be liable to pay sales tax on a presumption that it was intended to be sold within the State of Uttar Pradesh. In order to exempt payment of such tax transit passes were provided to such trucks which were carrying goods through the State for use/consumption in another State. The provision in regard to the transit pass is contained in rule 87 of the Sales Tax Rules. It provides for a tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there would be a contravention of rule 87. The argument of the petitioner that neither any tax nor any penalty could be levied on the petitioner is, in our opinion, not tenable. In all tax laws, the power to impose tax carries with it the analogous power to prevent evasion of tax, as well as enforcement of the provisions of the Act. The provisions of section 14(1)(e) and section 15-A(1)(r) are such powers which the sales tax authorities necessarily must have to prevent the evasion of tax. It is not necessary that the penalty should be levied only in the case of evasion of tax-power must be vested in the authorities to prevent such an event. These provisions only empower the sales tax authorities to carry out the object of the Act. Learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uiry means after giving an opportunity to the party concerned to explain and show cause. The imposition of a penalty without affording an opportunity to show cause would be hit by the rules of natural justice. In the present case there is no averment that there was any breach of the rules of natural justice. We are, therefore, unable to hold that the rule is arbitrary or capricious. It is, therefore, obvious that it is not obligatory on the part of the Sales Tax Officer at the check post to impose penalty in every case of delay. He has the power not to impose penalty if he is satisfied that the driver has a just cause for the delay in reaching the check post. Since the object of the Act is to impose sales tax and prevent evasion of sale ..... X X X X Extracts X X X X X X X X Extracts X X X X
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