Check-post tax collection requires statutory conditions and Form VI-B notice; immediate refund was not granted at writ stage.

Tax collection at a check-post was confined to cases where the goods were not fully covered by the way-bill, the way-bill was defective or incomplete, or there was tax evasion. The officer had to be satisfied that one of those conditions existed and had to serve notice in Form VI-B before collection, so the person concerned could rectify the defect or opt to pay the amount indicated. Collection without those statutory safeguards was impermissible. The request for immediate refund was declined because entitlement to refund was to be examined at assessment on the basis of evidence and materials.

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Issues: Whether tax could be collected at the check-post without satisfaction of the statutory conditions and issuance of notice in Form VI-B, and whether refund could be directed at the writ stage.

Analysis: The power of the officer in-charge of a check-post to collect tax is confined to situations where the goods are not fully covered by the way-bill, the way-bill is defective or incomplete, or there is evasion of tax. Before collection, the officer must be satisfied that one of those situations exists and must serve notice in Form VI-B, thereby giving the person concerned an opportunity to rectify the defect or opt to pay the amount indicated. As the controversy included whether the payment was voluntary or illegally collected, future collection could not be made without compliance with those statutory safeguards. However, refund was not granted at the writ stage because entitlement to refund was to be considered at assessment on the basis of evidence and materials.

Conclusion: Collection at the check-post without satisfaction of the statutory conditions and without notice in Form VI-B was impermissible, but the prayer for immediate refund was declined.

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