E-Transit pass non-surrender creates only a rebuttable presumption; assessment must consider other evidence and objections.

Non-surrender of an E-Transit pass creates only a rebuttable presumption and is not a condition precedent for proving inter-State movement of goods. Where the assessee produces legally valid documentary evidence and detailed objections showing that the goods crossed the State border, the assessing authority must consider those materials and cannot reject them solely because the transit pass was not surrendered. The Madras HC declined to issue a writ of prohibition, but directed fresh consideration of the assessment after independent application of mind to the petitioner's objections and supporting records, without insisting on surrender of the E-Transit pass.

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Issues: Whether a writ of prohibition could be issued to prevent the assessing authority from proceeding under the Tamil Nadu Value Added Tax Act, 2006 on the ground that the non-surrender of the E-Transit pass could not by itself establish local sale, and whether the assessment had to be reconsidered in light of the departmental circular permitting reliance on other documentary evidence.

Analysis: The circular relied upon recognises that non-surrender of a transit pass creates only a rebuttable presumption and does not make surrender of the E-Transit pass a condition precedent for establishing inter-State movement of goods. It further permits the assessee to produce legally valid and reliable documentary evidence to show that the goods had crossed the State border. Since the petitioner had already produced detailed objections and supporting records, the authority could not ignore those materials merely on the footing that the transit pass was not surrendered. However, on the facts, the Court was not inclined to grant the prohibitory writ sought, and instead considered it appropriate to have the matter examined afresh by the assessing authority.

Conclusion: The writ of prohibition was declined, and the assessment matter was remitted for fresh consideration without insisting on surrender of the E-Transit pass, after examining the petitioner's objections and documents and by independently applying mind.

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