Establishment of check post or barrier and inspection of goods while in transit

(1) 1(If the State Government or the) 2(Commissioner of Commercial Taxes) consider it necessary that with a view to prevent or check evasion of tax under this Act in any place or places in the State, it is necessary so to do, 3(the State Government) or the 2(Commissioner of Commercial Taxes) may by notification direct the setting up of a check post or the erection of a barrier, or both, at such place or places as may be notified. 1. Subs. by Act 5 of 1968, w.e.f.1.7.1968 for the words 'if the State Government consider". 2. Subs. by Act 14 of 1978, w.e.f.17.7.1978 for the words ' Board of Revenue". 3. Subs. by Act 5 of 1968, w.e.f.1.7.1968 for the word 'they'. (2) At every check post or barrier mentioned in sub-section (1), or at any other place when so required by any officer empowered by the State Government in this behalf, the driver or any other person in charge of goods vehicle or boat shall stop the vehicle or boat, as the case may be, and keep it stationary as long as may reasonably be necessary, and allow the officer in charge of the check post or barrier, or the officer empowered as aforesaid, to examine the contents in the vehicle or boat and inspect all records relating to the goods carried, which are in the possession of such driver or other person in charge (for the purpose of ascertaining whether there has been any sale or purchase of goods carried and in case there was sale or purchase of the goods carried, whether such sale or purchase is liable to tax under this Act, and if so- (a) whether such tax has been paid; or (b) whether the sale or purchase of the goods carried has, for the purpose of payment of tax under this Act, been properly accounted for in the bills of sale, or delivery notes or such other documents as may be prescribed.) NOTE: Subs. by Act 19 of 1974 w.e.f.15.5.1974 for the following words: "who shall if so required give his name and address and the name and address of the owner of the vehicle or boat." 1[(3) If on such examination and inspection it appears-

See Rules 46&47 Forms XIII & XXXIII

(a)(i) that the tax, if any payable under this Act in respect of the sale or purchase of the goods carried, has been paid; or (ii) that the sale or purchase of the goods carried has, for the purpose of payment of tax under this Act, been properly accounted for in the documents referred to in clause (b) of sub-section (2); the said officer shall release the goods vehicle or boat with the goods carried; or (b)(i) that the tax, if any, payable under this Act in respect of the sale or purchase of the goods carried has not been paid; or (ii) that the sale or purchase of the goods carried has, for the purpose of payment of tax under this Act, not been properly accounted for in the documents referred to in clause (b) of sub-section (2); and if the said officer is satisfied, after making such enquiry as he deems fit, that with a view to prevent the evasion of tax payable in respect of the sale or purchase of the goods, carried, it is necessary to detain the goods, he shall detain the goods and direct the driver or any other person in-charge of the goods vehicle or boat- (i) to pay such tax, or (ii) to furnish security for 2(an amount equal to five times the amount of tax payable) in such form and in such manner and to such authority as may be prescribed, on behalf of the person liable to pay such tax] 1. Subs. by Act No. 4 of 1989, w.e.f.30.3.1989. (4) If the tax is paid and the security is furnished, then the goods so detained shall be released forthwith. *Subs. for the words "or the security is furnished" by Act No.4 of 1989, w.e.f.30.3.1989. (5) The driver or any other person in charge of the goods vehicle or boat shall, if so required, give his name and address and the name and address of the owner of the goods vehicle or boat as well as those of the consignor and the consignee of the goods. (6) If the tax directed to be paid *(and the security) directed to be furnished under sub-section (3) is not paid (and furnished) and if the said officer is satisfied, after making such enquiry as he deems fit, that with a view to prevent the evasion of tax payable in respect of the sale or purchase of the goods carried, it is necessary to detain the goods, he shall detain so much of the goods as are approximately equal in value to the amount of tax directed to be paid *(and security) directed to be furnished under sub-section (3) as long as may reasonably be necessary: Provided that no such goods shall be detained by the said officer for more than three days except with the permission of the next higher authority. *[(6A) Where goods are carried without paying tax, if any, payable under this Act, or goods are carried without being properly accounted for in the documents referred to in clause (b) of sub-section (2), the said officer shall collect the tax payable on the goods so carried and in addition levy a penalty not exceeding five times the amount of tax payable on such goods after giving a reasonable opportunity to the person likely to be effected, against the proposed penalty.] 1(6B) Any such officer shall have power to seize and confiscate any goods where such goods are carried in the goods vehicle without any documents or covered ficttious documents. Provided that before taking action for the confiscation of goods under this sub-section, the officer shall give the person affected an opportunity of being heard. *Ins. by Act No. 4 of 1989 w.e.f.30.03.1989. 1. Ins. by Act No.30 of 2001 w.e.f.1.4.2001. (7) In case the goods detained under sub-section (6) are subject to speedy and natural decay, and in the case of the goods, where no claim is made within the prescribed period, the said officer shall, subject to such conditions as may be prescribed, sell such goods in open auction and remit the sale proceeds thereof in a Government treasury: Provided that if the said officer is an officer below the rank of a Deputy Commercial Tax officer, the sale under this sub-section shall be effected by the Deputy Commercial Tax officer having jurisdiction. (8) Any person entitled to such sale proceeds shall, on application to the prescribed authority and upon sufficient proof, be paid the sale proceeds mentioned in sub-section (7), after deducting the expenses of the sale and other incidental charges and the amount of *(sales tax and penalty due) under this Act in respect of the sale or purchase of the goods in question. Explanation: For the purpose of this section, the explanation 'said officer' means the officer-in-charge of the check-post or barrier or the officer empowered under sub-section (2).] *Subs.for the words "or the security"; "and furnished" and "sales tax due" respectively by Act No.4 of 1989,w.e.f.30.03.1989. 1. Sub-sections (3), (4), (5), (6),(7) and (8) were substituted for the earlier sub-sections (3) and (4) by Act No. 19 of 1974, w.e.f. 15.5.1974. 129-A. Power to inspect goods delivered to a carrier or bailee: 2(1) Where a carrier or bailee to whom goods are delivered for transmission, before delivery is taken from him keeps the said goods in any office, shop, godown, vessel, receptacle, vehicle or any other place, any officer empowered by the Government in this behalf, shall have power to enter into and search such office, shop, godown, vessel, receptacle, vehicle or other place of business or building or place, and to examine the goods and inspect all records relating to such goods. The carrier or bailee or the person in-charge of the goods and records shall give all facilities for such examination or inspection and shall if so required produce the bill of sale or delivery note or such other documents as may be prescribed regarding the goods and give his name and address and the name and address of the carrier or the bailee and the consignee. Explanation : For the purpose of this section, where goods are delivered to a carrier or a bailee for transmission, the movement of goods shall be deemed to commence at the time of such delivery and terminate at the time when delivery is taken from such carrier or bailee. 2(2) Any such officer shall have power to seize and confiscate any goods which are found in any office, shop, godown, vehicle, vessel or any other place of business or any building or place of a carrier or a bailee for transmission where such goods are not covered by any documents are covered by fictitious documents. Provided that before taking action for the confiscation of goods under this sub-section, the officer shall give the person affected an opportunity of being heard. 1. Inserted by Act 18 of 1985, w.e.f.1.7.1985. 2. By Act No.30 of 2001 the earlier Section 29A was numbered as sub-section (1) and after so renumbered, sub-section (2) was added. (*29-B.Transit of goods by road through the State and issue of transit pass: Where a vehicle, carrying goods, coming from any place outside the State and bound for any other place outside the State, pass through the State, the driver or other person-in-charge of such vehicle shall obtain in the prescribed manner a transit pass from the officer-in-charge of the first check-post or barrier after his entry into the state and deliver it to the officer-in-charge of the last check-post or barrier before his exit from the State, failing which it shall be presumed that the goods carried thereby have been sold within the State by the owner or person-in-charge of the vehicle and accordingly the tax is assessed and penalty, if any levied in accordance with the provisions of this Act: Provided that where the goods carried by such vehicle are, after their entry into the State, transported outside the State by any other vehicle or conveyance, the burden of proving that the goods have actually moved out of the State shall be on the owner or person-in-charge of the vehicle. Explanation: If a vehicle is hired for transportation of goods by any person, the hirer of that vehicle shall, for the purposes of this section be deemed to be the owner of the vehicle. *Inserted  by Act No. 14 of 1992, w.e.f2.5.1992.

See Rules 46A Forms XXXIII and XXXIII B