Free movement of goods prevails where documentary proof shows bona fide inter state carriage, so detention is unlawful absent reasonable doubt.

Detention powers at state check-posts under sales tax rules are limited by the constitutional guarantee of free movement of goods; they apply only where concrete facts raise a reasonable doubt that inter-state transport is a sham to effect local sale. Documentary proof-road challan, way bill under another State Act, consignment note and prior checks-may establish bona fide carriage to a destination outside the State and negate jurisdiction to detain. Absent specific facts creating reasonable doubt, detention is unlawful and the vehicle and goods must be released with a transit pass issued.

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Issues: Whether the detention of a goods vehicle at a State check-post under Section 27, Section 29-B of the A.P.G.S.T. Act and Rule 46-A(1) of the A.P.G.S.T. Rules was lawful where documents produced showed carriage from outside the State to outside the State.

Analysis: The statutory scheme requires carriers to carry prescribed documents and obtain transit passes to safeguard against evasion of sales tax. That supervisory power, however, is constrained by the constitutional guarantee of free movement of goods between States and applies only so long as there is a real and reasonable doubt that the transport is a camouflage to effect local sale. The materials produced included a road challan on the consignor's letterhead, way bill issued under the Orissa Sales Tax Act, consignment note, lorry challans showing consignor and consignee and prior checks at an earlier check gate. The form and annexures do not mandate a specific format of delivery note disclosing the party who handed the goods to the carrier. In the absence of concrete facts giving rise to a reasonable doubt that the movement was sham, the detention power could not be exercised.

Conclusion: The detention of the vehicle was without authority and unlawful; the goods must be released and a transit pass issued. This conclusion is in favour of the assessee.

Ratio Decidendi: Where documentary evidence establishes bona fide inter-state carriage to a destination outside the State, a checking officer lacks jurisdiction to detain the vehicle; detention is permissible only upon a reasonable doubt grounded in concrete facts that the transport is a camouflaged sale to evade tax.

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