Transit tax collection adjusted in assessment after check-post detention, with assessment directed to be finalised promptly.

Tax collected at a check-post during transit was directed to be adjusted in the subsequent assessment of a registered dealer, rather than treated as a separate unresolved levy. The High Court noted that the assessment year had already ended and ordered the assessing authority to finalise the assessment within two months while giving credit for the amount collected on 21 October 1994. The relief was limited to adjustment in assessment, and the writ petition was disposed of with costs.

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Issues: Whether the tax collected during transit could be challenged and whether the amount collected was to be adjusted in the subsequent assessment.

Analysis: The writ petition arose from a detention and collection of tax at the check-post in respect of goods covered by documents. The Court noted that the question whether the collection was voluntary or involuntary need not be examined in detail at that stage, as the relevant assessment year had already ended and the petitioner was a registered dealer. The Court therefore directed the assessing authority to finalise the assessment within two months and to grant adjustment of the amount collected on 21 October 1994 while completing the assessment.

Conclusion: The petitioner obtained relief to the extent of adjustment of the collected amount in assessment, and the writ petition was disposed of with costs.

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