Check-post officers cannot classify a consignment transfer as an inter-State sale or impose penalty on that basis.

Under section 14B of the Punjab General Sales Tax Act and rule 3A of the Punjab CST Rules, the check-post officer's role is limited to verifying prescribed transport documents and, if they appear absent, suspect, or not genuine, detaining the goods for the statutory purpose of checking evasion. The officer cannot decide whether the movement is a consignment transfer or an inter-State sale, because that classification belongs to the regular assessing authority. Where the required documents are produced and are prima facie authentic, detention and penalty cannot be sustained on a transaction-classification basis.

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Issues: Whether the officer in-charge of the check-post under section 14B of the Punjab General Sales Tax Act, 1948 read with rule 3A of the Central Sales Tax (Punjab) Rules, 1957 could determine the nature of the transaction and impose penalty on the ground that the consignment was an inter-State sale rather than a consignment transfer.

Analysis: The statutory scheme required the transporter to carry the prescribed vehicle record, goods receipt, challan or delivery note, and the intimation contemplated by rule 3A. Where those documents are produced and are prima facie authentic, the check-post officer's function is confined to verifying compliance and, if there is reason to suspect absence of proper or genuine documents or an attempt to evade tax, to detain the goods for the limited purpose authorised by section 14B. The provision does not confer jurisdiction on the officer to adjudicate whether the transaction is a consignment sale or an inter-State sale, which remains within the province of the regular assessing authority. The assessment record having already treated the movement as consignment sales, the penalty and detention orders were without jurisdiction.

Conclusion: The check-post officer had no jurisdiction to classify the transaction as an inter-State sale or to impose penalty on that basis; the answer was therefore against the Revenue and in favour of the dealer.

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