Transport seizure and penalty require statutory document defects; declared value below market value alone is insufficient.

Seizure of a vehicle and goods under the M.P. General Sales Tax Act is permissible only when the transporter is not carrying the prescribed documents, the documents are not in order, or the declaration copy is missing. A penalty proceeding under section 29-A also requires the statutory conditions for evasion-related action to be satisfied. Where the transporter carried the required invoice and other documents in order, the declared value could not be rejected merely because it was below assumed market value. On those facts, the seizure and notice proposing penalty were without jurisdiction and liable to be quashed.

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Issues: Whether seizure of the vehicle and goods, and the notice proposing penalty, were without jurisdiction where the transporter was carrying the prescribed documents in order and the authority proceeded only on the basis that the declared value was below the market value.

Analysis: Section 29-CC(3) of the M.P. General Sales Tax Act, 1958 permits further action under section 29-A only when, on inspection, the officer finds that the transporter is not carrying the prescribed documents, or that the documents are not in order, or that the copy of declaration is not carried. Section 29-A(4) requires carriage of the prescribed invoice, bill, challan or other document, while section 29-A(11) contemplates penalty only for an attempt to facilitate evasion of tax where the statutory conditions are satisfied. On the facts found, the documents were carried, were in order, and there was no statutory basis to question the declared value merely by reference to assumed market value. The statutory conditions for seizure and penalty proceedings were therefore absent.

Conclusion: The seizure and the notice were held to be without jurisdiction and liable to be quashed.

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