Genuine sale in transit goods dispute upheld as unsupported delivery notes and delayed book entries undermined the claim.

Goods intercepted in transit were found not to have been transported pursuant to a genuine sale, because the sale bill was not issued at the time of transport, the delivery note did not credibly support the claimed transaction, and the explanation for the missing delivery note book was rejected. The authorities also relied on the fact that the entry in the books was made only after interception and that the surrounding circumstances did not make the alleged sale probable. The Tribunal further noted incomplete particulars in the delivery note and no convincing proof of a wholesale sale to a retailer. The finding was upheld, and no interference was called for.

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Issues: Whether the goods intercepted in transit were shown to be transported pursuant to a genuine sale, so as to warrant interference with the authorities' finding and penalty-related action under the sales tax law.

Analysis: The material before the authorities consistently indicated that the sale bill was not issued at the time of transport, the delivery note did not satisfactorily support the claim of sale, and the explanation regarding loss of the delivery note book was not credible. The authorities also found that the transaction was entered in the books only after interception and that the circumstances did not probabilise the claim of sale. The Tribunal further noted that the absence of complete particulars in the delivery note and the lack of convincing proof of wholesale sale to a retailer weakened the assessee's case.

Conclusion: The finding that the consignment was not transported as a genuine sale transaction was upheld and no interference was called for.

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