https://www.taxtmi.com/caselaws?id=150261 Goods intercepted in transit without the prescribed bills and delivery notes were held to involve a statutory contravention, and the prescribed authority was entitled to compound the offence; the demand for compounding fee was therefore sustained. By contrast, the demand and collection of advance tax as a condition for release of goods were invalid because tax can be levied only when authorised by law and referable to an actual taxable sale or purchase. The court held that preventive powers to check evasion could not be extended into a power to impose sales tax on goods merely because they were in transit, so the advance tax demand was struck down. en-us Wed, 28 Jul 1971 00:00:00 +0530 Fri, 10 May 2013 18:17:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=150261 Goods intercepted in transit without the prescribed bills and delivery notes were held to involve a statutory contravention, and the prescribed authority was entitled to compound the offence; the demand for compounding fee was therefore sustained. By contrast, the demand and collection of advance tax as a condition for release of goods were invalid because tax can be levied only when authorised by law and referable to an actual taxable sale or purchase. The court held that preventive powers to check evasion could not be extended into a power to impose sales tax on goods merely because they were in transit, so the advance tax demand was struck down. Case-Laws VAT and Sales Tax Wed, 28 Jul 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=150261