Check-post tax cannot be collected in advance on properly documented inter-State consignments; doubtful papers require reasoned enquiry first.

Check-post authorities cannot collect tax in advance on poultry feed or poultry feed ingredients brought from outside the State merely on a presumption of possible clandestine sale or evasion. Where the consignment is supported by genuine documents showing inter-State purchase from registered dealers, anticipatory tax collection is without jurisdiction because no taxable sale has yet been established. If the documents appear doubtful or insufficient, the officer must conduct a summary enquiry under the relevant sales tax provisions and record reasons in a reasoned order. The revenue may still proceed with assessment and penalty where actual suppression or clandestine sale is found.

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Issues: Whether the check-post authorities could collect tax in advance on poultry feed or poultry feed ingredients brought from outside the State when the consignment was supported by genuine documents, and whether they were required to pass a reasoned order where the documents were found wanting.

Analysis: Tax collection at the check-post cannot be justified merely on a presumption that the goods may later be sold clandestinely or that tax may be evaded. Where the consignments are accompanied by genuine documents evidencing inter-State purchase from registered dealers, the check-post officials have no jurisdiction to collect tax in advance as if a taxable sale had already occurred. If the officer finds the documents suspicious or insufficient, the matter must be dealt with by a summary enquiry under section 29 of the A.P. General Sales Tax Act, 1957 read with rules 46 and 47 of the Andhra Pradesh General Sales Tax Rules, 1957, and reasons must be recorded. The revenue is not without remedy because the authorities may proceed with assessment and penalty if there is actual suppression or clandestine sale.

Conclusion: The petitioners were entitled to relief against anticipatory tax collection at the check-post when supported by proper documents, and the authorities could act only through a reasoned order after summary enquiry if the documents were not satisfactory.

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