2001 (3) TMI 874

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.... goods on the ground of under-valuation under section 29-A(2) of the Kerala General Sales Tax Act, 1963 (for short "the Act")? Sub-section (2) of section 29-A of the Act provides that if the check-post authority had reason to suspect that the goods under transport are not covered by proper and genuine documents or that any person transporting the goods is attempting to evade payment of the tax due under this Act, he may, for reasons to be recorded in writing, detain the goods and shall allow the same to be transported only on the owner of the goods, or his representative or the driver or other person-in-charge of the vehicle or vessel on behalf of the owner of the goods, furnishing security for double the amount of tax likely to be evaded, ....

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....heard. Thus section 19-B(1) of the Act can be pressed into service by the assessing authority only at the stage of making assessment. Section 29-A(2) can be invoked by the check-post authority while the goods are in transit. Under sub-section (2) of section 29-A of the Act, goods can be detained if the check-post authority has reasons to suspect that there is an attempt to evade payment of the tax. If the check-post authority prima facie, believe from under-valuation of the goods that the same was done with a view to evade the payment of tax, the goods can be detained. Of course, it does not depend upon the ipse dixit of the check-post authority. It must be on cogent materials to come to the conclusion that there was an attempt to evade ....

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....l amount, it cannot be stated that the check-post authorities have no powers to search, inspect and detain the goods if they have material to suspect, that the goods under transport do not possess the required documents, or there is an attempt at evasion of tax." So, the power to detain the goods in transit can be exercised by the check-post authority only when he has reason to believe that there was an attempt to evade the tax. If such inference can be drawn from under-valuation of the goods, then the power to detain the goods can be exercised by the check-post authorities. Simply because valuation of the goods can be determined by a best judgment assessment under section 19-B of the Act, it cannot be said that power to detain the goods....