https://www.taxtmi.com/caselaws?id=153517 Check-post interception of goods permits scrutiny of invoices and transport documents and, where justified, further proceedings on the merits, but it does not authorise a coercive demand for advance tax or compounding fee before assessment when the accompanying papers disclose an inter-State transit sale. Tax liability arises only after a completed taxable sale is established and assessed; interception powers cannot be used on an erroneous assumption that the movement is a local sale. On those facts, the detention of the goods and the demand made as a condition for release were held illegal, and the impugned order was set aside. en-us Tue, 12 Jan 1982 00:00:00 +0530 Wed, 24 Jul 2013 15:40:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=153517 Check-post interception of goods permits scrutiny of invoices and transport documents and, where justified, further proceedings on the merits, but it does not authorise a coercive demand for advance tax or compounding fee before assessment when the accompanying papers disclose an inter-State transit sale. Tax liability arises only after a completed taxable sale is established and assessed; interception powers cannot be used on an erroneous assumption that the movement is a local sale. On those facts, the detention of the goods and the demand made as a condition for release were held illegal, and the impugned order was set aside. Case-Laws VAT and Sales Tax Tue, 12 Jan 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=153517