Check-post jurisdiction and inter-State trade exemption barred purchase tax collection at the raw jute check-post.

Check-post officers lacked jurisdiction under the Bengal Raw Jute Taxation Act, 1941 because the Act contained no provision authorising check-posts or interception of consignments in transit, so recovery of purchase tax at the check-post was without statutory authority. The materials also showed that the raw jute transactions were in the course of inter-State trade or commerce and fell within the statutory exemption, so the amount collected was refundable to the applicant.

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Issues: Whether the check-post officers had jurisdiction under the Bengal Raw Jute Taxation Act, 1941 to intercept or detain raw jute consignments in transit and levy purchase tax at the check-post, and whether the tax collected was liable to be refunded.

Analysis: The State representative conceded that the Bengal Raw Jute Taxation Act, 1941 did not contain any provision authorising the setting up of check-posts. On that basis, the interception of the consignment and recovery of purchase tax at the check-post were without statutory authority. The materials also supported the applicant's contention that the transactions were in the course of inter-State trade or commerce and were within the statutory exemption.

Conclusion: The check-post officers had no jurisdiction to intercept or detain the consignment or to impose purchase tax at the check-post, and the amount collected was refundable to the applicant.

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