Transport of empty gunny bags for fish manure did not trigger sales tax document requirements, and penalty proceedings failed.

Movement of empty gunny bags solely for fetching fish manure was held not to require a sale bill, delivery note, or Form No. 39 under Mysore sales tax law, because the bags were not being transported as goods for sale or ordinary business storage. On the facts, there was no material basis to find contravention of section 28-A read with rule 23(d). The penalty proceedings were quashed, and the sale of the gunnies made in execution of that penalty was set aside, with entitlement to the sale proceeds restored to the petitioner.

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Issues: Whether the movement of empty gunny bags for the purpose of fetching fish manure attracted liability to produce a sale bill, delivery note or form No. 39 under the Mysore Sales Tax law, and whether the consequent penalty and seizure-sale proceedings were sustainable.

Analysis: The goods were not being transported as goods for sale or for storage in the ordinary course of business. The certificate accompanying the vehicle showed that the gunny bags were sent only for bringing fish manure. In such a case, there was no basis to insist upon a sale bill, and the circumstances did not justify a conclusion that there was contravention of section 28-A read with rule 23(d). The penalty was therefore without material support, and the sale of the gunnies made in execution of that penalty could not stand.

Conclusion: The penalty proceedings were quashed, and the petitioner was held entitled to the sale proceeds of the three bundles of gunnies.

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