TaxTMI 
TaxTMI 
2013 (12) TMI 921
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....ed basically for the reason that the goods were not accompanied by the Transit Declaration Form. The Transit Declaration Form was produced by the person in charge of the vehicle in pursuance of the show cause notice and therefore, for the technical default that it was not available at the time of checking/detention the seizure is not justified and the demand of security is illegal. The revisionist is a transporter and is not engaged in trading of any commodity. The revisionist was carrying goods of a consignor of Orissa to a consignee in Punjab both of whom are said to be registered dealers in their respective States. All necessary documents including G.R. and tax invoices were accompanying the goods. The goods during transit from Cuttack in Orissa to Ludhiana in Punjab had to pass through the State of U.P. The vehicle carrying the goods was intercepted by the Mobile Squad of the Commercial Tax Department of U.P. on the national highway at Naubatpur, U.P. A show cause notice dated 13.9.2013 was issued as the goods were not accompanied by Form 38/39 or the Transit Declaration Form. In response to the show cause notice the revisionist produced Transit Declaration Form dated 18.....
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....ribunal also reflects that the seizure was only on the ground that the goods were not accompanied by the Transit Declaration Form. In the above factual background the question which arises for examination is whether the goods in transit are liable to be seized for want of Transit Declaration Form. The power to seize goods is contained in Sections 48 and 50 of the VAT Act read with Rule 55 of the Rules framed under the VAT Act. Section 48 of the VAT Act is quite comprehensive and provides for the procedure for seizing the goods, for release of the same on security and for making a representation to the higher authority, if necessary. It empowers the officer authorised to seize the goods on the following grounds:- (i) Where the goods are not accounted for by the dealer in his accounts, registers or other documents maintained in the ordinary course of his business; (ii) Where the value of the goods in the documents accompanying the goods is under valued to the extent of more than 50% of the value of the goods prevalent at the relevant time in the local market; (iii) Where the goods are not traceable to any bona fide dealer; and (iv) Where the documents issued by t....
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.... be prescribed failing which a presumption can be drawn that the goods are likely to be sold within the State of U.P. Rule 58 of the Rules repeats the above provision as contained in Section 52 of the VAT Act and lays down that the goods coming from outside the State of U.P. and going to a distant place outside the State while passing through the State of U.P. are supposed to be accompanied by the documents as may be determined by general or special order issued by the Commissioner from time to time failing which a presumption shall be drawn that the goods carried are meant for sale within the State of U.P. The Commissioner, Commercial Tax, U.P. in accordance with the provisions of Section 52 of the VAT Act read with Rule 55(5) of the Rules is said to have issued a circular dated 30th July, 2009 prescribing for the downloading of a Transit Declaration Form from the website of the Commercial Tax Department of the U.P. for the purpose of carrying goods through the State of U.P. It provides that at the time of entry of the goods in the State a Transit Declaration Form is to be downloaded and duly filled up inter alia giving the route through which the goods are to be carried in ....
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....ings of the past. It is for this reason that the department itself had abolished the check posts. The checking of vehicles or goods during transportation may be necessary for promoting the interest of the revenue but practical experience is otherwise and it is common knowledge that such exercise causes hindrance not only in trade and commerce and delay in transit of goods but also in the smooth flow of traffic. This apart one cannot loose sight of the ground reality that in a country like India where most of the people are not literate, one cannot expect a driver or the cleaner of the vehicle to be competent enough to download a Transit Declaration Form, fill it correctly and produce it before the authority on demand. Generally, the driver or the cleaner of the vehicle are not possessed of internet facility. There is no guarantee that at every place of entry in U.P. from outside there is sufficient provision where a person can go and download the Transit Declaration Form. Even if Cyber Cafe is available one is never sure of its proper functioning enabling downloading of Transit Declaration Form round the clock. In such circumstances, the provision for downloading a Transit De....