Transit pass non-surrender and statutory presumption supported sales tax penalty under Kerala law.

A vehicle carrying goods through Kerala was required to obtain a transit pass at the first check-post and surrender it at the last check-post under section 30B of the Kerala General Sales Tax Act, 1963. Failure to surrender the pass gave rise to a statutory presumption that the goods were sold within the State to evade tax, which supported penalty under section 45A. The authorities found, after considering the dealer's explanation, that the pass was not delivered at the last check-post and that the goods were sold within the State. Those concurrent factual findings were treated as not warranting interference in writ jurisdiction unless perverse, arbitrary, or contrary to law, and the penalty was upheld.

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Issues: Whether penalty under section 45A of the Kerala General Sales Tax Act, 1963 was justified when the transit pass obtained at the first check-post was not surrendered at the last check-post.

Analysis: Section 30B of the Kerala General Sales Tax Act, 1963 requires a vehicle carrying goods through the State to obtain a transit pass at the first check-post and surrender it at the last check-post. Failure to surrender the transit pass attracts the statutory presumption that the goods were sold within the State so as to evade tax liability. The factual authorities had, after considering the explanation offered by the dealer, recorded findings that the transit pass was not delivered at the last check-post and that the goods were sold within the State. In writ jurisdiction, such concurrent findings of fact are not to be interfered with unless they are perverse, arbitrary, or contrary to law.

Conclusion: The penalty was upheld and the original petition was rejected.

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