Sales tax anti-evasion powers do not extend to confiscation of goods merely for missing transit documents.

Section 29(3) and (4) of the Andhra Pradesh General Sales Tax Act, which permitted seizure of goods not covered by the prescribed way bill and confiscation on non-payment of penalty, were held beyond the State's legislative competence under entry 54 of List II. The taxing power includes ancillary or incidental measures to prevent tax evasion, but it does not extend to confiscatory provisions that treat the absence of transit documents as sufficient basis for seizure and confiscation. The provisions were therefore invalid and could not be sustained.

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Issues: Whether sub-sections (3) and (4) of section 29 of the Andhra Pradesh General Sales Tax Act, which authorise seizure of goods not covered by a prescribed way bill and confiscation upon non-payment of penalty, are within the legislative competence of the State under entry 54 of List II of the Seventh Schedule to the Constitution of India.

Analysis: The relevant taxing entry empowers the State Legislature to legislate on taxes on the sale or purchase of goods, including provisions ancillary or incidental to that power and measures for preventing tax evasion. However, the power to seize and confiscate goods merely because they are not accompanied by a way bill containing prescribed particulars was held not to be fairly and reasonably comprehended within that taxing power. The reasoning followed the principle that while machinery provisions to prevent evasion are permissible, confiscatory provisions assuming tax liability from the mere absence of documents go beyond what is ancillary or incidental to the levy of sales tax.

Conclusion: Sub-sections (3) and (4) of section 29 are invalid as beyond the legislative competence of the State and cannot be sustained.

Ratio Decidendi: A taxing entry authorises ancillary measures to prevent evasion of tax, but it does not extend to provisions empowering seizure and confiscation of goods merely for want of prescribed transit documents.

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