Transit documents and revenue security: trip sheet directed on bank guarantee where diversion was feared.

Where transit documents were said to be irregular and there was apprehension of diversion of goods within the State, the Court balanced the transit right against the revenue interest by requiring security. It declined to examine the validity of the seizure at that stage and directed issuance of the trip sheet on furnishing of a bank guarantee up to the tax amount, ensuring movement of the goods while protecting the revenue.

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Issues: Whether, in the circumstances of alleged irregularity in transit documents and apprehension of possible diversion within the State, the authority should be directed to issue the trip sheet on furnishing of security by way of bank guarantee.

Analysis: The revision challenged the refusal to grant relief under the transit provisions of the U.P. Trade Tax Act, 1948. The dispute centered on the check-post authority's apprehension that the goods might be sold inside the State and that the trip sheet might not be surrendered at the exit check-post. The Court declined to enter into the validity of the seizure at that stage and instead balanced the competing considerations by safeguarding the revenue interest through security.

Conclusion: The authority was directed to issue the trip sheet on furnishing of a bank guarantee to the extent of the tax amount, so as to secure the revenue and ensure movement of the goods the State of U.P.; the revision was disposed of accordingly.

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