31 Establishment of check-post, barriers and inspection of goods in transit

Establishment of check-post, barriers and inspection of goods in transit.

(2) The owner or person incharge of the goods and, when the goods are carried by a goods carrier, the driver or any other person incharge of the goods carrier, shall carry with him a goods carrier record, a trip sheet or log book, along with a sale invoice or tax invoice or delivery note, as the case may be, and a declaration containing the prescribed particulars in the prescribed form obtained from the prescribed authority, duly filled in and signed by the prescribed persons, in respect of the goods meant for the purpose of business and are carried by him or in the goods carrier and produce the same before an officer incharge of a check-post or barrier or any person appointed under sub-section (1) of section 55 not below the rank of an Assistant Excise and Taxation Officer or such other officer, as the State Government may by notification in the Official Gazette, appoint, checking the goods carrier at any other place.

(3) At every check-post or barrier or at any other place, when so required by any officer referred to in sub-section (2) in this behalf, the owner or person incharge of the goods shall stop and the driver or any other person incharge of the goods carrier, entering or leaving the limits of the State, shall stop the goods carrier, and keep it stationary, as long as may reasonably be necessary, and allow the officer incharge of the check-post or barrier, or the officer as aforesaid to examine the goods-carried by him or in the goods carrier, by breaking open the package or packages, if necessary, and inspect all records relating to the goods carried which are in the possession of such owner or person incharge of the goods or the driver or other person incharge of the goods carrier, who shall also furnish such other information, as may be required by the aforesaid officer, who, if considered necessary may also search the goods carrier and the driver or other person incharge of the goods carrier or of the goods.

(4) The owner or person incharge of the goods or goods carrier, entering or leaving the limits of the State, shall furnish a copy of goods receipt, documents as referred to in sub-section (2) or a declaration containing such particulars in such form obtained from such authority, in the manner as may be prescribed, of the goods carried by him or in such carrier, as the case may be, to the officer incharge of the check-post or barrier and shall produce the copy of the said goods receipt, documents or declaration duly verified and returned to him by the officer incharge of the check-post or barrier before any other officer as mentioned in sub-section (2): Provided that where the owner or person incharge of the goods or the driver or other person incharge of the goods carrier bound for any place outside the State passes through the State, he shall in the prescribed manner furnish, in duplicate, to the officer incharge of the check-post or the barrier of his entry into the State a declaration in the prescribed form and obtain from such officer a copy thereof duly verified; and shall deliver within twenty-four hours or such other time as may be prescribed and different lengths of time may be prescribed for different sets of entry and exit check-posts or barriers, the said copy to the officer incharge of the check-post or barrier at the point of his exit from the State, failing which he shall be liable to pay a penalty, to be imposed, if he fails to deliver the copy of the said declaration, by the officer incharge of the check-post or barrier of the entry, of an amount computed as provided in sub-section (8), and if he fails to deliver the said copy in time, by the officer incharge of the check-post or barrier of the exit, of two thousand rupees:

Provided further that no penalty shall be imposed unless the person concerned has been given a reasonable opportunity of being heard:

Provided further that where the owner or person incharge of the goods or the driver or other person incharge of the goods carrier bound for any place in the State from any other place in the State has to pass through another State, he shall furnish, in duplicate, to the officer incharge of the check-post or barrier of his exit from the State, a declaration in the prescribed form and obtain from him a copy thereof duly verified and shall deliver the same to the officer incharge of the check-post or barrier of his entry into the State, within four hours or such other time as may be prescribed and different lengths of time may be prescribed for different sets of exit and entry check-posts or barriers, of his exit from the State through the check-post or barrier, failing which he shall be liable to pay a penalty, to be imposed, if he fails to deliver the copy of the said declaration, by the officer incharge of the check-post or barrier of the exit, of an amount computed as provided in sub-section (8), and if he fails to deliver the said copy in time, by the officer incharge of the check-post or barrier of the entry, of two thousand rupees:

Provided further that no penalty shall be imposed unless the person concerned has been given a reasonable opportunity of being heard.

(5) The Commissioner may issue directions to any dealer or class or classes of dealers individually that the documents referred to in sub-section (2) shall, in the absence of establishment of a check-post or the erection of a barrier under sub-section (1), be furnished to such officer not below the rank of an Assistant Excise and Taxation Officer at such office in respect of such class or classes of goods as mentioned in the directions, consigned to, or consigned by,such dealer(s) and when such directions are issued, the person carrying the goods shall produce the said documents duly verified and returned to him by the said officer, before any other officer as mentioned in sub-section (2). The directions issued under this sub-section shall remain in force so long as these are not modified or withdrawn and when modified shall remain in force as these are modified.

(6) If the officer incharge of the check-post or barrier or other officer as mentioned in sub-section (2) has reasons to suspect that the goods under transport are not covered by proper and genuine documents as mentioned in sub-section (2) or sub-section (4), as the case may be, or that the person transporting the goods is attempting to evade payment of tax, he may for reasons to be recorded in writing, and after hearing the said person, order the unloading and detention of the goods and shall allow the same to be transported only on the owner of the goods, or his representative or the driver or other person incharge of the goods carrier on behalf of the owner of the goods, furnishing to his satisfaction, a security, or if the owner of the goods is a dealer registered under this Act, having regard to his financial position a personal bond, in the prescribed form and manner for the maximum amount which may be chargeable from him under sub-section (8):

Provided that the officer detaining the goods may, if he deems fit, having regard to the nature of the goods and the goods carrier, and other relevant matters, hand over the goods for safe custody to any person, who shall, subject to such restrictions and conditions as may be prescribed, be paid the expenses thereof by such officer. The person to whom the goods are handed over for safe custody shall not hand over them to anyone except with the written permission of the officer detaining the goods otherwise the value of the goods shall be recoverable from him as arrears of land revenue:

Provided further that where any goods are detained, a report shall be made immediately and in any case within twenty-four hours of the detention of the goods by the officer detaining the goods to the officer incharge of the district where the goods have been detained seeking the latter's permission for the detention of the goods for a period exceeding twenty-four hours as and when so required and if no intimation to the contrary is received from the latter, the former may assume that his proposal has been accepted.

Note - Where a duly filled and signed declaration referred to in sub-section (2) or sub-section (4) or duly verified documents referred to in sub-section (5), as the case may be, is (are) not produced before the officer referred to in sub-section (6), such officer shall have sufficient reason to suspect that the person transporting the goods is attempting to evade payment of tax.

(7) When any goods are detained under sub-section (6), the officer detaining the goods shall issue to the owner of the goods, if present, or, if the owner of the goods is not present, to his representative or the driver or other person incharge of the goods carrier a receipt specifying the description and quantity of the goods so detained and obtain an acknowledgement, from such person or if such person refuses to give an acknowledgement, record the fact of refusal and make immediately a report to the officer incharge of the district where the goods are detained.

(8) The officer detaining the goods shall record the statement, if any, given by the owner of the goods or his representative or the driver or other person incharge of the goods carrier. If, after the inquiry including an inquiry into the nature of the transaction which occasioned the movement of goods, such officer finds that there has been an attempt to evade the tax, he shall, by order, impose on the owner of the goods and in case the owner is not forthcoming or his identity is not disclosed by the person incharge of the goods or the driver or person incharge of the goods carrier, in which the goods are being carried, on the person incharge of the goods or the goods carrier or the driver, deeming such person to be the owner of the goods, a penalty computed by multiplying the value of the goods with three times the rate of tax applicable on their sale subject to a maximum of thirty percent of the value of the goods, and direct him to deposit, in addition to the penalty, advance tax computed by multiplying the value of the goods with the rate of tax applicable on their sale which shall be adjustable with the liability to tax incurred on the purchase or sale of such goods or the sale of goods manufactured therefrom, as the case may be, and in case it finds otherwise, it shall order the release of the goods: Provided that where the offence relates to only an attempt to evade tax by underpricing the goods, the penalty shall be computed by multiplying the difference between their market price and the value shown in the documents accompanying their movement with three times the rate of tax applicable on their sale:

Provided further that no penalty shall be imposed and no advance tax shall be required to be deposited unless the owner of the goods or his representative or person incharge of the goods or the goods carrier or the driver, as the case may be, has been given a reasonable opportunity of being heard:

Provided further that if the penalty imposed under this sub-section is set aside in any proceeding under this Act or by the court, the amount of advance tax and penalty both shall be refunded to the person who paid the same. (9) In the event of the owner of the goods not paying the penalty imposed and the advance tax payable under sub-section (8) within thirty days from the date of the supply of the copy of the order passed under that sub-section to him, the goods detained shall be liable to be sold by public auction, or disposed of otherwise, in the prescribed manner, for realisation of the penalty and advance tax: Provided that if the order of imposition of penalty under sub-section (8) is in the meantime set aside or modified in appeal or other proceeding, the officer detaining the goods and imposing the penalty shall also pass consequential order for giving effect to the order in such appeal or other proceedings, as the case may be.

(10) If the goods detained are of a perishable nature or subject to speedy and natural decay or are such as may, if held, lose their value or when the expenses of keeping them in custody are likely to exceed their value, the officer incharge of the check-post or barrier or any other officer empowered under sub-section (2), as the case may be, shall immediately sell such goods or otherwise dispose them of and deposit the sale proceeds of such goods, or the amount obtained by the disposal of such goods otherwise than by way of sale, in the State Government treasury.

(11) Where the detained goods are sold or otherwise disposed of under this section, the owner thereof shall be liable to pay the expenses and other incidental charges incurred in detaining and disposing of the same.

(12) If the sale proceeds of any goods sold or the amount obtained on the disposal of any goods otherwise than by way of sale under the provisions hereinbefore contained exceeds the penalty imposed and advance tax payable in respect of such goods, such excess amount after deducting the expenses, and incidental charges referred to in sub-section (11) shall be returned by the officer who conducted the sale or otherwise disposed of the goods, to the owner of the goods.

(13) At every station of transport of goods, bus-stand or any other station or place of loading or unloading of goods including any place or godown where goods are stored, other than a post office, when so required by a taxing authority, the person incharge of such place or owner or person incharge of the goods including where the goods are loaded or are being loaded in or unloaded from a goods carrier at such place, the driver or other person incharge of the goods carrier shall produce for examination transport receipts and all other documents and account books concerning the goods carried, transported, loaded, unloaded, consigned, delivered or received for transport to be maintained by him in the prescribed manner and a taxing authority shall have, for the purpose of examining that such transport receipt and other documents and account books are in respect of the goods carried, transported, loaded, unloaded or consigned, delivered or received for transport, the power to break open any packages of such goods or enter or search the premises. If the taxing authority is satisfied that it is necessary for thepurpose of investigation or verification, such authority may seize the transport receipts, documents or account books produced before it for examination or found by it at such premises, and it shall forthwith grant a receipt for them and shall return them to the person from whose custody those were seized after examination or completion of investigation or verification within a period of sixty days, and where those are required to be retained beyond the aforesaid period of sixty days, the authority other than the Commissioner so retaining them shall record the reasons in writing and shall obtain the approval of the Commissioner for so doing.

(14) Except in accordance with such conditions, as may be prescribed, with a view to ensuring that there is no evasion of tax imposed by or under this Act -

(a) no driver or person incharge of a goods carrier or any person incharge of a place of loading or unloading of goods shall accept any consignment of goods for transport or give delivery of any consignment of such goods, other than personal luggage or goods for personal consumption;

(b) no dealer or any person including a carrier of goods acting on behalf of a dealer, shall take delivery of, or transport from any station of transport of goods, bus stand or any other station or place, of loading or unloading of goods, airport or any other place, whether of similar nature or otherwise, any consignment of goods referred to above.

Explanation.– For the purpose of this section –

(1) where any goods are delivered to person incharge of a goods carrier or any person incharge of a place of loading or unloading of goods for transmission, the movement of the goods shall, for the purposes of this section, be deemed to commence at the time of such delivery and terminate at the time when delivery is taken from such person; and

(2) the officer detaining the goods includes the officer who is competent to detain the goods.