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TMI Blog2015 (11) TMI 880X X X X Extracts X X X X X X X X Extracts X X X X ..... uments for the generation of form ST-XXIV as required under Clause (4) of Section 14-B of the Punjab General Sales Tax Act, 1948 (in short the Act). After getting the form ST-XXIV generated at the ICC centre, drivers of the said vehicles produced the stock invoices, ground receipts (GR) and forms ST-XXIV before the Excise and Taxation Officer on checking duty. 3. During the process of inspection, having found three loading slips issued by the respondent-company, with the drivers showing that the loaded goods were to be delivered to M/s CWC Stores, GT Road, Shahdara, New Delhi, the checking officer thus concluded that the goods were not to be delivered to the branch office of the respondent-company but were to be delivered elsewhere. Having raised the doubt, in order to verify the correctness and validity of the documents, i.e., the stock transfer invoices, GRs, etc., the checking officer ordered for detention of the goods alongwith documents under Section 14-B(6)(i) of the Act. On 23.12.2003, the respondent-company got the goods released against surety bond in terms of provisions of Section 14-B(6)(i) of the Act. 4. The checking officer issued notice under Section 14-B(7)(ii) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould not have assumed jurisdiction of an assessing officer arrogating to himself the powers to determine the nature of the transaction that is as to whether it was a branch transfer or inter-State sale. 8. Reading of the impugned order and provisions of sub-sections (2) and (4) of Section 14-B as also of Section 14-B(7)(ii) of the Act clearly reveal that the impugned penalty order affirmed by the first Appellate Authority goes far and beyond the powers assigned to such officers under the Act. 9. At this stage, it would be relevant to reproduce the aforesaid provisions, which read as under:- "14-B - Establishment of check posts or information collection centres and inspection of goods in transit: (1)xxx xxx xxx xxx (2)The owner or person incharge of a goods vehicle shall carry with him a goods vehicle record, a trip sheet or a log book, as the case may be, and a goods receipt and a sale bill or cash memo, or delivery note containing such particulars, as may be prescribed. In respect of such goods meant for the purpose of trade as are being carried in the goods vehicle and produce a copy of each of the aforesaid documents to an officer incharge of a check post or information ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the State of Punjab, shall be on the owner or person-in-charge of the vehicle. Provided further that no penalty shall be imposed unless the person concerned has been given a reasonable opportunity of being heard. (5) and (6) xxx xxx xxx xxx (7)(i) xxx xxx xxx xxx (7)(ii) The officer authorized by the State Government shall, before conducting the enquiry, serve a notice on the consignor or the consignee of the goods detained under clause (i) of subsection (6), and given him an opportunity of being heard and if, after the enquiry, such officer finds that there has been an attempt to avoid or evade the tax due or likely to be due under this Act, he shall by order impose on the consignor or consignee of the goods, a penalty, which shall not be less than twenty per cent and not more than thirty percent of the value of the goods and in case he finds otherwise, he shall order the release of the goods and the vehicle, if not already released, after recording reasons in writing and shall decide the matter finally within a period of fourteen days from the commencement of the enquiry proceedings." 10. In similar circumstances, a Division bench of this Court in GSTR No.10 of 1998 (M/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nterception note was issued. The petitioner appeared before the officer and apprised the detaining officer of the entire situation and circumstances. Despite explanation furnished by the trader, penalty under Section 14-B(7) was imposed and then was recovered in cash. The basis for imposing penalty was that the goods were sold in the course of inter-State sales and there was an attempt to evade tax. 12. Even in the present case, allegations are that the goods were being transferred as branch transfer but were actually moving in the course of inter State sale and thus there was evasion of tax. 13. In Automobile Products of India Limited v. State of Karnataka, [1991] 081 STC 414, it was held that check post officer could only see whether prescribed documents were being carried with the vehicles were proper and genuine or not. It was held as under:- .....We find from the order of the Appellate Tribunal that it totally misdirected itself in treating the penalty order as if it was an assessment order passed by a competent assessing authority and looked into the question whether the sale was intra-State sale or inter-State sale. That perhaps was due to the mistake originally committe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n favour of the dealer had recorded as under:- "Section 14-B of PGST Act deals with establishment of check post or Information Collection Centres and inspection of goods in transit. Vehicles had voluntarily reported at ICC. Action under Section 14-B (7)(ii) of the Act could be taken when where there was violation of sub section (2) or (4) of Section 14-B of the Act. The drivers of the vehicles had the invoices in the form of stock transfer and GRs with them. Even if the drivers had some document showing that the goods were to be unloaded at the address of CWC stores, GT Road, Shahdhra, Delhi, still the documents which the drivers were carrying could not be said to be ingenuine or transaction doubtful. If there was any doubt then the matter should have been reported to the Assessing Authority rather than conducting proceedings under Section 14-B of the Act. Proceedings under Section 14-B of the Act are summary proceedings and the authorities at the ICC could not possibly go into intricate questions as to whether it was branch or inter-state sale..." Learned State Counsel has not been able to demonstrate any flaw in the approach of the Tribunal which may warrant interference. In t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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