https://www.taxtmi.com/caselaws?id=164389 Failure to surrender the transit pass within the stipulated time under section 28AA of the Karnataka Sales Tax Act triggers a statutory presumption that the goods were sold within the State by the owner of the vehicle, and penalty follows on non-compliance. The provision is aimed at preventing diversion of goods in transit, and the owner bears the burden of producing reliable material to rebut the presumption, such as proof of delivery to the consignee, lawful extension of time, or evidence that the goods actually left the State. A Tribunal cannot treat the transaction as a second sale exempt from tax without meeting the specific liability created by section 28AA; authorities relied on for exemption are inapplicable where the statutory transit-pass breach is admitted. en-us Tue, 27 Apr 2010 00:00:00 +0530 Thu, 09 Oct 2014 14:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=164389 Failure to surrender the transit pass within the stipulated time under section 28AA of the Karnataka Sales Tax Act triggers a statutory presumption that the goods were sold within the State by the owner of the vehicle, and penalty follows on non-compliance. The provision is aimed at preventing diversion of goods in transit, and the owner bears the burden of producing reliable material to rebut the presumption, such as proof of delivery to the consignee, lawful extension of time, or evidence that the goods actually left the State. A Tribunal cannot treat the transaction as a second sale exempt from tax without meeting the specific liability created by section 28AA; authorities relied on for exemption are inapplicable where the statutory transit-pass breach is admitted. Case-Laws VAT and Sales Tax Tue, 27 Apr 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=164389