Clearing agent liability under sales tax transport rules upheld where deeming provision treats non-compliance as contravention.

A clearing agent who signs prescribed transport documents and arranges movement of goods can be proceeded against for breach of the transport restrictions under section 68 of the West Bengal Sales Tax Act, 1994 where rule 211A applies. Rule 211A(6) requires compliance with endorsement and documentary conditions during transport, and rule 211A(8) deems infringement by a person covered by sub-rule (1) to be a contravention of section 68 by that person. As the agent fell within the covered class, liability was fastened on him and the penalty under section 71B was sustained.

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Issues: Whether a clearing agent who signs the prescribed documents and arranges transport of goods can be proceeded against and penalised for contravention of section 68 of the West Bengal Sales Tax Act, 1994 and rule 211A of the West Bengal Sales Tax Rules, 1995.

Analysis: Section 68 prohibits transport of consignments except in accordance with the prescribed restrictions and conditions. Rule 211A(6) requires compliance with the endorsement and documentary requirements during transport, and rule 211A(8) expressly deems any infringement of the rule by the person covered by sub-rule (1) to be a contravention of section 68 by that person. On the admitted facts, the petitioner acted as the clearing agent and was within the class of persons covered by the rule. The statutory scheme therefore fastens responsibility on the clearing agent and does not confine liability to the transporter alone.

Conclusion: The clearing agent was liable for contravention and the penalty under section 71B was sustainable.

Final Conclusion: The writ petition failed because the impugned penalty order was upheld and no interference was warranted.

Ratio Decidendi: Where the governing sales tax rules create a deeming provision that treats infringement by the person covered by the rule as a contravention of section 68, a clearing agent engaged in the transport process can be penalised for non-compliance.

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