Transit-pass verification must match the actual consignment; unrelated invoices cannot justify seizure at the check-post.

Under the transit-pass regime in section 28-B of the U.P. Trade Tax Act and rule 87 of the Rules, exit check-post verification must focus on whether the goods actually found tally with the particulars in the transit pass. Where 99 drums of agro-chemicals matched the weight and description recorded in the transit pass, detention could not be justified by an invoice and delivery note that were not shown to relate to the same consignment. The presumption against the assessee was therefore unavailable, and the detention, seizure and retention of the goods were held illegal and unsustainable.

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Issues: Whether the detention and seizure of the goods were valid when the goods found on physical verification tallied with the transit pass, and whether the check-post authority could rely on invoice and delivery note not shown to relate to the impugned consignment.

Analysis: The transit-pass regime under section 28-B of the U.P. Trade Tax Act, 1948 and rule 87 of the U.P. Trade Tax Rules, 1948 is a machinery provision intended to prevent tax evasion by ensuring that goods declared for inter-State transit are taken out of the State as declared. At the exit check-post, verification has to be made with reference to the transit pass and the particulars stated therein. Here, the same 99 drums of agro-chemicals, with the same weight and description, were found on physical verification as were mentioned in the transit pass. Invoice No. 33 and delivery note No. 34 did not correspond to the impugned consignment and there was no basis to connect those documents with the goods in transit. The presumption under section 28-B could not therefore be invoked against the assessee.

Conclusion: The detention and seizure were illegal and unsustainable, and the goods could not be retained on the basis of the unrelated invoice and delivery note.

Final Conclusion: The revision succeeded, the seizure and the orders below were set aside, and the goods were directed to be released.

Ratio Decidendi: Under the transit-pass provisions, the check-post authority must verify only whether the goods actually found tally with the particulars in the transit pass, and seizure cannot be sustained on the basis of unrelated documents not shown to pertain to the same consignment.

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