Transport document lapse may justify seizure, but penalty needs a finding of tax evasion intent.

Goods intercepted in transit under the West Bengal Sales Tax regime may be seized where the prescribed transport documents are not produced within the required time, even if supporting bills or invoices are filed later. Penalty, however, cannot be imposed mechanically on that basis alone; after the amendment to Rule 214C, the authority must consider all relevant materials, including later-produced documents, and determine whether there was any intention to evade tax. Where no finding on evasion or intent to evade is recorded, the penalty decision is liable to be set aside and reconsidered.

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Issues: (i) Whether the seizure of goods for non-production of the prescribed documents under the West Bengal Sales Tax regime was justified. (ii) Whether penalty could be sustained without a finding that the petitioner intended to evade payment of sales tax, especially in view of the documents subsequently produced and the amended Rule 214C.

Issue (i): Whether the seizure of goods for non-production of the prescribed documents under the West Bengal Sales Tax regime was justified.

Analysis: The goods were intercepted while being transported outside the State, and the driver failed to produce the documents required by the statutory scheme within the stipulated time. The Court held that, on those facts, the seizure could not be faulted merely because supporting bills and invoices were produced later.

Conclusion: The seizure was upheld as justified.

Issue (ii): Whether penalty could be sustained without a finding that the petitioner intended to evade payment of sales tax, especially in view of the documents subsequently produced and the amended Rule 214C.

Analysis: The Court noted that after the amendment to Rule 214C, the transporter was not required to carry both the way bill and challans in the rigid manner assumed by the authorities, and that the Tribunal had treated the delivery challans as irrelevant while still imposing penalty. Penalty under the fiscal scheme depended on a judicially exercised discretion and required consideration of all relevant circumstances, including whether there was any intention to evade tax. The Tribunal had not examined the later-produced bills and invoices or recorded any finding on evasion or intent to evade.

Conclusion: The penalty order was unsustainable and the matter had to be reconsidered on the question of evasion and intention to evade.

Final Conclusion: The Tribunal's order was set aside and the matter was remitted for fresh decision after considering the relevant documents and recording a finding on evasion and intention to evade.

Ratio Decidendi: Penalty for non-compliance with fiscal transport requirements cannot be imposed mechanically upon a valid seizure; it requires a judicial determination, on all relevant materials, that the dealer or transporter intended to evade tax.

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