Undervaluation in way bill can justify interception and seizure where tax evasion is indicated under the statutory scheme.

Where the value disclosed in the way bill is found to be materially below the prevailing market value, the check-post authority may treat the discrepancy as indicating attempted tax evasion and intercept the vehicle under the statutory scheme. The Tribunal held that an earlier endorsement at another check-post did not bar fresh verification, because precedent binds only on the issues actually decided and on the relevant facts. On the material before it, the interception and seizure of the consignment were upheld as lawful under rule 212(10) and the provisions dealing with contravention, and the dealer's challenge failed.

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Issues: Whether the interception and detention of the vehicle carrying goods on the ground of undervaluation and suspected evasion of tax was lawful, and whether the authority was justified in seizing the consignment under the statutory scheme.

Analysis: The Tribunal held that the challenge could not succeed on the basis of an earlier decision because precedent is binding only for what it actually decides, and a case decided on different facts or without considering the relevant sub-rules cannot control the present matter. It further held that the controversy was not about a mere subsequent re-check of endorsed documents, but about verification of the value disclosed in the way bill. On the material before it, the Tribunal accepted that the consignment was shown at a rate far below the prevailing market value and that this indicated an attempt to evade tax. In that situation, the checking authority was held entitled to act under rule 212(10) and to intercept the vehicle and proceed under the statutory provisions dealing with contravention.

Conclusion: The interception and seizure were upheld, and the challenge by the dealer failed.

Final Conclusion: The application was found to be without merit and was dismissed, leaving the revenue authorities' action intact.

Ratio Decidendi: Where the disclosed value of goods in the way bill is found to be materially undervalued so as to indicate an attempt to evade tax, the check-post authority may verify the consignment and take action under the statutory provisions for contravention notwithstanding prior endorsement of the documents at an earlier check-post.

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