TaxTMI 
TaxTMI 
2015 (3) TMI 477
X X X X Extracts X X X X
X X X X Extracts X X X X
....s of the very same goods being Liquid Petroleum Gas (LPG), belonging to the Hindustan Petroleum Corporation Limited. The LPG was transported from Mangalore to Madurai and had been issued at the earlier instance, with a transit pass at the entry check post being Manjeswaram. The transit pass was not surrendered at the exit check post. 2.The petitioner's grievance is with respect to the detention of the present transit, which is supported by Ext.P6 invoice. The petitioner contends that not even a notice under Section 47(2), was issued and the detention is illegal. This Court by an interim order dated 11.06.2014 directed release of the vehicle, and issuance of transit pass as also sought for explanation from the officer as to how th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t. However while the sales tax enactment is concerned with the transport of goods and its delivery within the State or outside it, the system seems to have given emphasis to the delivery of the transit pass itself. 5. This Court cannot discount the fact that, though a notice under Section 47(2) was not issued, effectively the vehicle was detained at the check post, for reason of an earlier transit-transport having not been properly registered at the exit check post. On failure to surrender a transit pass at the exit check post, necessarily, the department is entitled to take proceedings under Section 48(3) of the Act deeming, an owner or cosignor of the goods or owner or driver or the person in charge of the vehicle or goods, to be an asse....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the goods carried by such vehicle or vessel are, after their entry into the State, transported outside the State by any other vehicle or conveyance, the onus of proving that goods have actually moved out of the State, shall be on the owner or consignor of goods or owner or driver or person in charge of such vehicle or vessel, as the case may be. (3) Where it is presumed under sub-section (2) that the goods carried in a vehicle or vessel have been delivered within the State for sale by the owner or consignor of goods or owner or driver or person in charge of such vehicle or vessel such owner or consignor of goods or owner or driver or person in charge of the vehicle or vessel shall be jointly or severally liable to pay tax which shall be a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ransported in the very same vehicle, which had not surrendered a transit pass issued to an earlier consignment. 8. Admittedly the present consignment does not suffer any defect in transport and no notice on that count was issued. But for all practical purposes the goods and vehicle were detained, at the check post. If such detention is made, especially without notice under Section 47(2), that would fall foul of the statutory prescriptions, and violate Article 301 of the Constitution of India. The elaborate provisions dealing with transport of goods, and the prescription of documents to accompany such transport, intra-State and inter-State, is definitely to ensure revenue collection. It should also further trade and commerce and facilitate&....
X X X X Extracts X X X X
X X X X Extracts X X X X
....strictions obstruct the freedom whereas regulation promote it" (sic), was highlighted in the context of Article 301 of the Constitution of India. Section 29 of the Act and Rule 35 of the Rules as it existed then was found to be not worthy of being regarded as merely regulatory, provisions, entailing free flow of goods. 11. The Full Bench found that the wordings of sub section 2 of Section 29 of the Act, indicated a prohibition, which is directly against transport. Sub section 2, as it stood, ordained that no person shall transport the goods across a check post, unless the transport is accompanied by certain documents. It was also observed by the Court that, if the matter rested with a mere obligation to produce certain documents for examin....
X X X X Extracts X X X X
X X X X Extracts X X X X
....finitely cannot be a ground for the executive officers to so do; what the statute itself does not and cannot sanction. 14. In such circumstance, this Court is of the definite opinion that the Commissioner has to look into the issue and provide for necessary measures, to facilitate smooth transportation of goods, as also ensure that no such illegality is repeated hereafter. The system configuration cannot lead to consequences not provided for in the statute. The Registry will forward a copy of the above judgment to the Commissioner of Commercial Taxes, Department of Commercial Taxes, Trivandrum. 15. With respect to the present Writ Petition, it is clear that Ext.P1 notice has been issued against the driver of the vehicle, who was in ....