Penalty under sales tax transit rules needs a real statutory default; mere route deviation is not enough.

Penalty proceedings under section 29-CC of the M.P. General Sales Tax Act, 1958 require an actual statutory default, such as absence of required documents, improper documents, or missing declaration copy. Where inspection shows that the transporter carried the necessary documents in order, a mere deviation from the normal route does not create a lawful basis for penalty. The notice initiating proceedings was therefore unsustainable and was quashed, along with consequential action.

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Issues: Whether penalty proceedings under section 29-CC of the M.P. General Sales Tax Act, 1958 could be initiated or continued merely because the truck took a different route, when on inspection all required documents were found to be in order.

Analysis: The statutory power under section 29-CC is attracted only where the transporter is not carrying the required documents, the documents are not in order, or the declaration copy is missing. The facts found on inspection showed that the vehicle was carrying the necessary documents and no default within the scope of section 29-CC was established. A mere deviation from the normal route, without any statutory lapse, did not furnish a lawful basis for penalty proceedings. The authority was required to act within the limits of its jurisdiction, and proceedings unsupported by any factual foundation could not be sustained.

Conclusion: The notice initiating penalty proceedings was unsustainable and was quashed, along with all consequential proceedings.

Ratio Decidendi: Penalty proceedings under section 29-CC of the M.P. General Sales Tax Act, 1958 cannot be sustained unless the statutory preconditions for interception and action are actually made out on inspection; mere route deviation, by itself, is insufficient.

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