2018 (12) TMI 229

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....ered into to that effect; however, the same is not on record. The vehicle passes through the State of Madhya Pradesh. On 12/03/2013, the vehicle in question entered the State of Madhya Pradesh through its first check post situated at Dinara (Sikroda) Check Post, District Shivpuri (M.P.). As the goods carried were out-to-out, the carrier was required to carry Form No. 59. On its presentation, the value of the goods as shown in the sale bill was on lower side, which led the Authorities, detain the vehicle. That notice was issued on 13/03/2013 to the transport agency; whereon, the transport agency compounded the offence by depositing the composition amount in terms of sub-section (17) of Section 57 of the Act of 2002 on 17/03/2013. The goods were released on 11/04/2013. That prior to release of goods on 11/04/2013, as the transport agency had admitted the guilt, notice was issued to it in respect of the vehicle in question, further calling upon it that similar to vehicle in question, the transport agency in respect of the consignment of out-to-out goods between the period from 01/04/2012 to 31/01/2013 has not got cancelled 147 transit pass (Behatia) in Form 59. This notice under Secti....

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....nager, if any, of such owner." In the present case, the petitioner is the owner of vehicle Truck bearing registration No. W.B. 73-C- 3535. It is also not in dispute that said vehicle is hired by a transport company, viz, Anand Express Freight Carrier Pvt. Ltd. under an agreement. It is not in dispute that said vehicle is used for transportation of goods from Siliguri to Rajkot and Ahmedabad. In course whereof it passes through the State of Madhya Pradesh. It is not in dispute that on 12/03/2013 the vehicle entered the State through its first check post situated at Dinara (Sikroda) check post, District Shivpuri. It is a matter of record that the goods carried were out-to-out and on presentation of Form 59 the value of goods as shown in the sale bill was on lower side. This led the Authorities to issue notice. The transporter, which includes the present petitioner, admitted the guilt and compounded the offence under Section 57(17) of 2002 Act. Sub-section (1) of Section 57 of the Act 2002 mandates that the State Government or the Commissioner may, with a view to prevent or check evasion of tax under this Act, set up or erect in such manner as may be prescribed, check posts or b....

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....re in movement within the territory of the State of Madhya Pradesh, empowers any officer, not below the rank of an Assistant Commercial Tax Officer, as may be authorized by the Commissioner, may for the purposes of the Act of 2002, stop the vehicle or the carrier or the person carrying such goods and the documents relating to the goods which are in the possession or control of a transporting agency or person or other such bailee and the provisions of sub-section (2) shall mutatis mutandis apply. In case the goods in movement are not supported by any document referred under subsection (2) or the documents produced appear false or forged, the officer concerned is empowered under sub-section (5) for reasons to be recorded in writing to : (a) direct the transporter not to part with the goods in any manner including re-transporting or rebooking, till a verification is done or an enquiry is made, which shall not take more than seven days; (b) detain or seize the goods or the vehicle or carrier along with the goods and shall give a receipt of the goods or the vehicle or carrier along with the goods, if seized, to the person from whose possession or control they are se....

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....of being heard and with the prior approval in writing of the Deputy Commissioner having jurisdiction, may confiscate such vehicle or carrier. In the present case as evident from the facts adverted at, with the admission of guilt and having paid twice the amount of penalty, the collusion with the dealer involved in avoidance or evasion of tax stood established beyond any iota of doubt. The contention that with the compounding of offence the illegality gets validated and that an action under sub-section (9) of Section 57 of 2002 Act is not attracted is taken note of and rejected at the outset. The depositing of penalty which is twice the amount of tax establishes the factum that the transporter in possession or in control of goods has colluded with the dealer who evades the tax, which attracts action under sub-section (9) of Section 57 of 2002 Act. Trite it is that in construing provisions designed to prevent tax evasion, if the legislature uses words of comprehensive import, the Courts cannot proceed on an assumption that the words were used in a restricted sense so as to defeat the avowed object of the legislature (please see: Crawford Statutory Construction: page 508: Inland Re....

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