Delivery note requirement for specified goods upheld as a reasonable anti-evasion and inspection measure under sales tax law.

Section 28-A of the Karnataka Sales Tax Act, 1957, requiring carriage of a delivery note for specified goods in a goods vehicle or boat, was upheld as a valid regulatory measure. The Court treated the requirement as incidental to tax collection and enforcement, aimed at preventing evasion and assisting inspection at check posts, and found it neither arbitrary nor unconstitutional. The fact that goods may have been transferred otherwise than by sale did not affect the provision's validity, because a delivery note may relate to movement of goods in sale and non-sale transactions alike. The complaint regarding non-issue of forms was also insufficient to invalidate the section.

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Issues: Whether section 28-A of the Karnataka Sales Tax Act, 1957, requiring carriage of a delivery note for specified goods in a goods vehicle or boat, is unconstitutional or arbitrary.

Analysis: The proviso applies only to specified commodities and serves the object of ensuring proper payment of tax and preventing evasion. The requirement to carry a delivery note is treated as a regulatory measure connected with the inspection of goods and the establishment of check posts, and is therefore not arbitrary. The contention that the goods were transferred otherwise than by sale did not undermine the validity of the provision, since a delivery note may relate to delivery of goods in transactions with or without a completed sale. The grievance that forms were not issued to the extent demanded was also not a ground to invalidate the section.

Conclusion: Section 28-A was held valid and the challenge was rejected.

Final Conclusion: The petitions failed, and the regulatory requirement for delivery notes in respect of specified goods was upheld as a legitimate anti-evasion measure.

Ratio Decidendi: A statutory requirement incidental to the collection and enforcement of sales tax, designed to prevent evasion and assist inspection at check posts, is a reasonable and valid regulatory measure.

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