TMI Blog1992 (1) TMI 332X X X X Extracts X X X X X X X X Extracts X X X X ..... arly breached. The relevant facts may be briefly summarised thus: Messrs. Prayag Udyog (Pvt.) Ltd., Allahabad, is a registered dealer carrying on the business of buying and selling chassis. On September 2, 1991, a chassis No. HR-05A/ 0312-B reached the sales tax check-post at Bhopura district, Ghaziabad on its way from Karnal. The driver, Mahendra Kumar, produced a temporary registration certificate and an invoice along with an application for issue of a transit pass in form XXXIV. Though these papers, prima facie, showed that the chassis was on its way to Rewa, Madhya Pradesh, and the name of the petitioner was shown as the consignee, a little interrogation by the Sales Tax Officer at the check-post revealed that the real truth was being suppressed. The driver gave evasive replies from which the Sales Tax Officer concluded that the story that the chassis was in transit was a pure concoction. The chassis was accordingly detained by the Sales Tax Officer who declined to issue transit pass in form XXXIV. The Sales Tax Officer issued a show cause notice to Messrs. Prayag Udyog (Pvt.) Ltd. why the chassis should not be seized for violation of section 28-A not having been accompanied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rdingly seized from the custody of Messrs. Prayag Udyog (Pvt.) Ltd. On inspection carried out on subsequent dates the Sales Tax Officer, S.I.B., Allahabad, recorded the statement of the petitioner who was also present at the premises of Messrs. Prayag Udyog (Pvt.) Ltd. The petitioner reiterated that he was a resident of Civil Lines, Rewa and produced a photostat copy of the ration card in support of that allegation. The Sales Tax Officer, S.I.B., Allahabad, got an enquiry made from his counterpart at Rewa and found that somebody else was residing at the address given by the petitioner at Rewa and that the ration card produced by him was also fake. The petitioner was also called upon to produce the original cash receipt and other material to support that he was resident of Rewa. Even after seeking several adjournments the petitioner did not furnish any document nor could he substantiate that he was a resident of Rewa. After the Sales Tax Officer, S.I.B., Allahabad, had carried a thorough enquiry he issued a show cause notice on September 26, 1991 fixing October 1, 1991. Despite several adjournments obtained by him on October 1, 1991, October 7, 1991, October 10, 1991 and October 21, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cle even if they discover that the transit pass was obtained on a fraudulent misrepresentation that the goods were intended to pass through the State without any transaction of sale taking place therein and even if the authorities discover that the goods were imported, as in the present case, for sale within the State. Section 28-A(1) of the U.P. Sales Tax Act mandates that any person who intends to bring, import or otherwise receive into the State from outside any goods liable to tax under the U.P. Sales Tax Act in connection with business, must obtain the prescribed declaration forms, i.e., forms XXXI and XXXII. Sub-section (6) of section 28 authorises the assessing authority to detain any goods if he finds upon search or inspection that the person transporting or attempting or abetting to transport any goods without being covered by proper and genuine documents referred to in that section. The officer is also authorised to exercise all such powers as are mentioned in sub-sections (2), (6) and (8) of section 13-A of the Act, i.e., the power to seize the stocks and to indicate the amount not exceeding such amount as would be sufficient to cover the penalty likely to be imposed on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... referred to as 'declaration', 'certificate' or 'pass', respectively), as the case may be, in duplicate; (ii) cash memo, bill of sale or challan; (iii) a trip sheet in triplicate; (b) The owner, driver or any other person in-charge of any vehicle or vessel shall in respect of all other goods carried in such vehicle or vessel carry with him a trip sheet in triplicate." Rule 84 provides: "84. Inspection of goods in transit.-(1) At every check-post or barrier or at any other place, when so required by the officer in-charge of the checkpost or by an officer empowered under section 13 or 13-A or under rule 3-A or 4 the owner, driver or any other person in-charge of the vehicle or vessel, as the case may be, shall stop the vehicle or vessel and keep it stationary for as long as may be required by such officer. He shall also allow such officer to examine the contents of the vehicle or vessel and to inspect all documents and records relating to the goods carried, which may be in his possession or in the possession of any other person in the vehicle or vessel. (2)......................................... (3) If on such examination the officer finds or has reason to believe that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bout the proposition laid down in that case. The facts in the present case are, however, wholly distinguishable. The department's stand in the present case is that the real importer of the chassis was Messrs. Prayag Udyog (Pvt.) Ltd. and that the same was brought within the State for sale therein. The chassis was, therefore, clearly liable to tax on the facts as have been found by the Sales Tax Officer while seizing the chassis. We also find no merit in the contention that once the Assistant Commissioner, Check Post, directed the issue of form XXXIV and the release of the chassis without security the same could not be seized again. A plain reading of the order passed by the Assistant Commissioner under section 13-A(6) of the Act goes to show that the order was passed on the basis of the apparent state of things. There was the invoice and the temporary licence produced by the driver at the entry check-post at Bhopura which, prima facie, indicated that the petitioner as purchaser of the chassis was taking it to Rewa (Madhya Pradesh) via Uttar Pradesh. The Assistant Commissioner, therefore, allowed the release of the vehicle and directed the Sales Tax Officer to issue transit pass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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