TaxTMI 
TaxTMI 
1990 (9) TMI 315
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....as per the Invoice No. 11/30436 to No. 11/30464 dated 27th July, 1983, M/s. Automobile Products of India Ltd., Bhandup, Bombay-78, had issued those invoices to different customers in Bangalore and one in Devaraya Samudra of Kolar District. The invoices also disclosed that Central sales tax at 12 per cent was collected apparently by the seller at Bombay. However, the goods vehicle record, which is one of the documents prescribed to be carried under subsection (2) of section 28-A of the Karnataka Sales Tax Act, 1957, to accompany goods in transit which are exigible to sales tax in Karnataka, disclosed that the consignee of the vehicles was South India Automotive Corporation Limited, Bangalore. Therefore, the Check-post Officer formed the o....
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....te. Aggrieved by such imposition, appeal was preferred to the Assistant Commissioner of Commercial Taxes (Appeals), Belgaum, who dismissed the appeal. Against that order of dismissal, a further appeal was preferred to the Karnataka Appellate Tribunal in Appeal No. STA 1372/83. By an order dated 29th August, 1986, the Appellate Tribunal dismissed the appeal by a detailed order. In this Court, the only question that falls for our consideration is whether the Check-post Officer could be vested with the jurisdiction of determining the nature of the sale involved in the transaction and on such determination of the nature of the sale as to whether intra-State or interState sale, impose penalty under sub-section (4) of the Karnataka Sales Ta....
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....ost or barrier, or at any other place when so required by any officer empowered by the State Government in this behalf, the driver or any other person-in-charge of a goods vehicle or boat shall stop the vehicle or boat, as the case may be, and keep it stationary as long as may be required by the Officer-in-charge of the check-post or barrier or the officer empowered as aforesaid, to examine the contents in the vehicle or boat and inspect all records relating to the goods carried, which are in the possession of such driver or other person-in-charge, who shall, if so required give his name and address and the name and address of the owner of the vehicle or boat. Explanation.-For purposes of sub-sections (2) and (3), the officerin-charge of....
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....mercial Tax Officer and not higher in rank than an Assistant Commissioner of Commercial Taxes may, in respect of any contravention of or non-compliance with the provisions of sub-section (2) or (3) or (3-A) and for which sufficient cause is not furnished, levy a penalty not exceeding the limits specified in subsection (5). The aforesaid officer may also levy penalty where the declaration made under sub-section (2) is false in respect of the materials furnished therein or where the particulars furnished in the records do not tally with the goods actually being transported or are found to be not relating to such goods: Provided that before levying any penalty under this sub-section, the officer shall give the person-in-charge of the goods ....
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....a, if the levy is made by an Assistant Commissioner of Commercial Taxes; and (ii) in other cases to the Assistant Commissioner of Commercial Taxes of the area concerned. (b) Such appeal shall be dealt with as if it were an appeal filed under section 20 and the provisions of that section shall apply to such appeal accordingly." It is obvious that the intendment of the section is to prevent the movement of goods exigible to tax within or without the State with a view to avoid payment of tax. Therefore, it is made clear in sub-section (2) that the carrier of such goods must necessarily have in his possession certain prescribed documents. If such documents were not carried, power is conferred on the Check-post Officer to retain the goo....