TMI Blog2017 (1) TMI 1270X X X X Extracts X X X X X X X X Extracts X X X X ..... ration in respect of goods being sold from within or outside the State in the course of inter-state trade or commerce. In terms of the provisions at the relevant time, the use of the term 'person' in the first proviso to Section 51(2) of the Act as distinct from 'the owner or person in charge of a goods vehicle' in Section 51(2) of the Act does not foist obligation of furnishing a declaration in terms of the first proviso, on any person when goods are not being transported in a goods vehicle. It is opined that as per the scheme of the Section 51 (at the relevant time), the declaration in terms of the first proviso to Section 51(2) is required to be furnished only by 'the owner or person in charge of a goods vehicle' in respect of goods as are being carried in the goods vehicle for the purpose as mentioned in the first proviso. The proceedings initiated against the appellant are held to be without jurisdiction. Appeal allowed - decided in favor of appellant. - VAT Appeal No.53 of 2009 (O&M) - - - Dated:- 19-12-2016 - Mr. Rajesh Bindal and Mr. Harinder Singh Sidhu, JJ. For The Appellant : Mr.Sandeep Goyal, Advocate For The Respondent : Mr.Piyush Bansal, DAG, Pun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that these ornaments were prepared from gold given by the parties, was not accepted. Vide order dated 25.1.2008 passed by the AETC (MW) Amritsar penalty of ₹ 39,07,235/- was imposed under Sections 51(7)(c) read with Section 51(12) of the Act. The appeal filed by the appellant was dismissed by DETC(A), Jalandhar Division vide order dated 20.5.2008. The further appeal to the Tribunal was dismissed vide order dated 20.2.2009. 3. Before the Tribunal, it had been argued on behalf of the appellant that the provisions of Sections 51(2) and (4) of the Act were applicable only in a case where goods were being transported in a 'goods vehicle'. Relying on the definition of 'goods vehicle' as given in Section 2(l) of the Act, it was argued that a vehicle running upon fixed rails, was specifically excluded from the definition of 'goods vehicle'. Accordingly, as Ankit Mehra from whose possession, the gold ornaments were found, was travelling in a train, the provisions of Sections 51(2) and 51(4) of the Act were not attracted. Reliance was placed on a decision of this Court in International Switch Gears vs. Union Territory of Chandigarh others (1998) 109 STC 75 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2) thereof, which is concerned only with the liability of the 'owner or person in charge of a goods vehicle' in respect of 'goods being carried in the goods vehicle'. It is only vide the Punjab Value Added Tax (Amendment) Act, 2013 which come into force on 9.4.2013, that Section 51 of the Act has been amended. After this amendment in Section 51(2) of the Act, the words used are the owner or person In charge of the goods or a goods vehicle instead of only 'the owner or person Incharge of the goods vehicle' at the relevant time. Similar amendments have been made in Subsections (3), (4) and (5) of Section 51 of the Act. Also in sub-section (2) of Section 51 of the Act after the words as are being carried in the goods vehicle the words or by any other means have been inserted which now reads as as are being carried in the goods vehicle or by any other means . The first proviso has also been amended and the words intrastate or has been inserted. He further argued that recently interpreting Section 51 (as it existed before the 2013 amendment) this Court in VAT Appeal No. 73 of 2009 titled State of Punjab and another Vs. M/s Indo Arya Central Transpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l or cash memo, or delivery challan containing such particulars, as may be prescribed, in respect of such goods meant for the purpose of business, as are being carried in the goods vehicle and produce a copy each of the aforesaid documents to an officer Incharge of a check post or information collection centre, or any other officer not below the rank of an Excise and Taxation Officer checking the vehicle at any place: Provided that a person selling goods from within or outside the State in the course of inter-State trade or commerce, shall also furnish or cause to be furnished a declaration with such particulars, as may be prescribed: Provided further that a taxable person, who sells or despatches any goods from within the State to a place outside the State or imports or brings any goods or otherwise receives goods from outside the State, shall furnish particulars of the goods in a specified form obtained from the designated officer, duly filled in and signed. (3) At every check post or information collection centre or at any other place when so required by an officer referred to in sub-section (2), the driver or any other person Incharge of the goods vehicle shall stop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the State, shall lie on the owner or person Incharge of the vehicle: Provided further that no penalty shall be imposed unless the person concerned has been given an opportunity of being heard. (5) At every station of transport of goods, bus stand or place of loading or unloading of goods, when so required by the Commissioner or the designated officer, the driver or the owner of the goods vehicle or the employee of transport company or goods booking agency, shall produce for examination, transport receipts and all other documents and accounts books concerning the goods carried, transported, loaded, unloaded, consigned or received for transport, maintained by him in the prescribed manner. The Commissioner or the 44 designated officer shall, for the purpose of examining that such transport receipts or other documents or account books are in respect of the goods carried, transported, loaded, unloaded or consigned or received for transport, have the powers to break open any package, or packages of such goods. (6) (a) If the officer Incharge of the check post or information collection centre or any other officer as mentioned in sub-section (2), has reasons to suspect that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods. In case he finds otherwise, he shall order 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; (c) The officer referred to in clause (b), before conducting the enquiry, shall serve a notice on the consignor or consignee of the goods detained under clause (b) of subsection (6) and give him an opportunity of being heard and if, after the enquiry, such officer is satisfied that the documents as required under subsections (2) and (4), were not furnished at the information collection centre or the check post, as the case may be, with a view to attempt to avoid or evade the tax due or likely to be due under this Act, he shall by order, for reasons to be recorded in writing, impose on the consignor or consignee of the goods, penalty equal to fifty per cent of the value of the goods involved. In case, he finds otherwise, he shall order release of the goods for sufficient reasons to be recorded in writing. He may, however, order release of the goods and the vehicle on furnishing of a security by the consignor or the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecking the vehicle at any place. 16. As per first proviso to Section 51(2) a person selling goods from within or outside the State in the course of inter-state trade or commerce shall also furnish a declaration with such particulars, as may be prescribed. 17. On a plain reading of the above provisions it appears that Section 51(2) of the Act obliges each and every 'owner or person in charge of a goods vehicle' to carry with him the documents prescribed therein in respect of goods meant for the purpose of business and being carried in the goods vehicle. 18. But in respect of goods being sold from within or outside the State in the course of inter-state trade or commerce the first proviso imports an additional condition of furnishing a declaration with such particulars as may be prescribed. Thus the purpose of the proviso appears to be to require furnishing of an additional declaration in respect of goods being sold from within or outside the State in the course of inter-state trade or commerce. This declaration would be in addition to the documents required to be carried in respect of every goods vehicle carrying goods for the purpose of business. It is made clear b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reproduced below: Form VAT 12 (See rule 30, 63 64) Declaration at ICC or check post Rule 64 of the Rules is titled 'Procedure for furnishing information at the Information Collection Centre' The same is reproduced below: 64. Procedure for furnishing information at the Information Collection Centre (1) The owner or person in charge of the goods vehicle shall submit before the authorised person at the Information Collection Centre :- (a) transporter's copy of VAT invoice or retail invoice or delivery challan, as the case may be; (b) declaration for transport of goods to and from the State in Form VAT-36, in duplicate; and (c) Goods Receipt or trip sheet or way bill or log book, as the case may be. (2) The authorised person at the Information Collection Centre, shall enter the relevant information in the computer and generate serially numbered computerized printouts of Form VAT-12 or Form VAT-35, in duplicate, whereafter the documents mentioned in sub-rule(1), shall be returned to the person in charge of the goods along with the aforesaid Forms in duplicate. (3) The authorised person sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m VAT-12 or Form VAT-35 be submitted to the officer in charge of the Information Collection Centre, sub-rule (5) which prescribes that the officer-in-charge of the Information Collection Centre shall retain the original foil of the declaration furnished and return the duly stamped and signed copies thereof, all use the term 'owner or person in charge of the goods vehicle'. 24. This further indicates that just as in Section 51(2) of the Act, the obligation to submit the declaration in terms of the first proviso to Section 51(2) of the Act is also on 'the owner or person in charge of the goods vehicle' and not of any other person who is not 'the owner or person in charge of the goods vehicle' 25. Hence, it is opined that in terms of the provisions at the relevant time, the use of the term 'person' in the first proviso to Section 51(2) of the Act as distinct from 'the owner or person in charge of a goods vehicle' in Section 51(2) of the Act does not foist obligation of furnishing a declaration in terms of the first proviso, on any person when goods are not being transported in a goods vehicle. It is opined that as per the scheme of the Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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