1996 (9) TMI 577

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....e the consignment was proceeding to Tuticorin when on May 31, 1996, the Check-post Officer, Kaniyur (Out) detained the consignment on the ground that there is no evidence regarding the passing of the lorry through various check-posts from Calcutta to Coimbatore, and also no valid records accompanied the goods for export from Tuticorin. Suspecting the genuineness of the transaction detention was made. 2.. On June 3, 1996, the petitioner submitted a representation to the Assistant Commissioner, Sales Tax Department, Coimbatore, stating that they have a valid Tamil Nadu general sales tax registration. They produced proof to show that the consignment has passed through several check-posts from Calcutta to Coimbatore. The Assistant Commission....

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....er having said so, the check-post officer went on insisting that the petitioner should pay the advance tax and compounding fee.   4. The power to detain goods at the check-post is contained in section 42 of the Tamil Nadu General Sales Tax Act. After stating in sub-section (1) of section 42 that check-posts are established with a view to prevent or check evasion of tax under the Tamil Nadu General Sales Tax Act, under sub-section (2), the check-post officer is authorised to stop the vehicle and to examine the contents of the goods in the vehicle and to inspect all documents relating to the goods for the purpose of ascertaining whether there has been any sale or purchase of the goods carried and in case there was such a sale or purch....

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....Calcutta to Tuticorin is beyond doubt. In other words, if the check-post officer had applied his mind to the facts of the case, the only conclusion he should have reached is that there was no sale or purchase in Tamil Nadu and there is no liability to pay tax under the Tamil Nadu General Sales Tax Act. Since a detention at a check-post is possible and permissible only if there is tax evasion or if the due payment of tax is not properly accounted for, but in the present case such eventuality did not arise, the detention of the consignment is wrongful. 6.. The next question that requires consideration is whether the check-post officer was right in demanding payment of tax of Rs. 24,187. Such a liability would arise only if the check-post o....