Establishment of Check Posts and ICC (1)
• If with a view to prevent or check – avoidance or Evasion f tax under this Act
• State Government, considers it necessary so to do
• It may by notification
• Direct for establishment of check post or ICC or both
• At such place or places, as may be specified in the notification.
Record to be carried with vehicle (2)
• The owner or person in charge (PIC)of a goods vehicle shall carry with him
i) A Goods Vehicle Record
ii) Goods receipt
iii) A Trip Sheet or Log Book
iv) A Sale Invoice or Bill or Cash Memo or Delivery Challan
containing prescribed particulars
• in respect of goods meant for the purpose of business as are being carried in the goods vehicle
• and produce a copy each of the aforesaid documents to an Officer Incharge of check post (OIC of CP)or ICC OR any other officer not below the rank of ETO checking vehicle
• at any place
Proviso Ist: DECLARATION AT ICC OR CHECK POST (VAT 12)
A person selling goods from with in or outside the state in course of interstate trade or commerce shall also furnish or cause to be furnished a declaration with prescribed particulars (VAT-12)
Note: It means a person not selling goods need not furnish declaration.
Proviso 2nd: EXIM FORM (VAT 36)
A taxable person , who sells or dispatches any goods from with in the state to a place outside the state or imports or brings any goods or otherwise receives goods from outside the state shall furnish particulars of goods in specified form obtained from designated officer, duly filled in and signed (VAT 36)
RULE 64: PROCEDURE FOR FURNISHING INFORMATION AT ICC
- The owner or PIC of GV shall submit before auth. Person (AP) at ICC duly signed original and copy of following documents :
a) transporter copy of VAT Invoice or Retail Invoice or deleivery challan
b) VAT 36 in duplicate (not applicable)
c) Goods Receipt (VAT 39)or trip sheet or way bill (VAT 40) or log book
d) Single declaration duly signed in form VAT -12 or VAT -35
- The AP of ICC shall retain original foil of declaration in VAT 12 or VAT 35 and generate duplicate computer print outs of VAT 12 or VAT 35(AP may charge appropriate service charges fixed by Commisioner for providing computer print outs) AND return duly signed and stamped copies of :
a) Duplicate copy of VAT Invoice or Retail Invoice or delivery challan and Goods Receipt (VAT 39)or trip sheet or way bill (VAT 40) or log book
b) copies of VAT 12 and VAT 35 in duplicate
c) Duplicate foil of VAT 36
Power to Stop and search vehicle, driver etc. (3)
• At every check post or ICC OR at any other place when so required by Officer u/ss(2)
• the driver or any other person incharge of goods vehicle (here no duty cast upon owner of the vehicle)
• shall stop the vehicle and keep it stationary as long as may reasonably be necessary
• and allow the officer in charge of the check post or ICC or aforesaid officer
to check the contents in the vehicle by breaking open the package or packages, if necessary and
inspect all the records relating to goods carried which are in possession of the driver or any other person as may be required by aforesaid officer and
if considered necessary such officer may also search the goods vehicle AND the driver or any other person incharge of the vehicle or goods
Note: the person in charge of goods can be searched u/s 51(3)
Furnishing of declaration at ICC by owner or PIC of Goods Vehicle s. 51(4)
• While entering the limits of state or leaving the limits of the state
• The owner or PIC of Goods vehicle
• Shall stop at the nearest CP or ICC and
• Shall furnish VAT 12 in triplicate along with documents carried in respect of goods carried in the vehicle before OIC of CP or ICC
• OIC shall return one copy of VAT 12 duly verified by him to owner or PIC of Goods vehicle to enable him to produce at the time of subsequent checking.
Ist Proviso : TRANSIT SLIP (VAT 35)
• Where goods bound for a place outside the state pass through the state
• The owner or PIC of GV shall furnish VAT 35 in duplicate
• And obtain from a copy of VAT 35 duly verified
• The owner or PIC of GV shall deliver that copy of VAT 35 to OIC of CP or ICC at the exit point of the state.
• If Owner or PIC of GV fails to do this, penalty = 50% of value of goods involved
By order of OIC of CP or ICC
After Giving an opportunity of being heard (3rd Proviso)
(Note: There is no provision for detention of goods and vehicle nor any provision for surety bond and security in place of penalty)
2nd Proviso: Break up of Transportation
• Where goods carried by a vehicle (mentioned in VAT 35) after entry into state
• Are transported outside state by another vehicle or conveyance
• The burder of proving that goods have actually moved out of the state shall lie upon owner or PIC of vehicle.
Power to examine transport receipt, other documents, account books of transporter AND break open any package(s) s.51(5)
• At every station of transport of goods, bus stand or place of loading or unloading of goods
• When so required by Commissioner or Designated officer (DO)
• The driver or owner of Goods Vehicle or employee of transport company or goods booking agency shall produce for examination
• Transport receipts and all other documents and account books concerning the goods – carried, transported, loaded, unloaded, consigned or received for transport
• Maintained in prescribed manner
• The Comm or DO for the purpose of examination that transport receipt or other documents or account books are in respect of goods- carried, transported, loaded, unloaded, consigned or received for transport shall have powers to break open any package or packages of such goods
When the goods meant for trade are not covered by proper and genuine documents s. 51(6)(a)
• If OIC of CP or ICC or officer mentioned in ss(2)
• Has reasons to suspect
• That The goods under transport are meant for trade AND are not covered by proper and genuine documents mentioned in ss. 2 and ss. 4 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 person concerned
• ORDER detention of goods along with vehicle
• for a period not exceeding 72 HOURS
(As per section 51(9),
-the officer detaining the goods shall issue to owner of goods or his representative or the driver or the PIC of GV
-a receipt specifying the description and quantity of goods so detained
- and obtain acknowledgement from such person or
- if such person refuses to give acknowledgement then record the fact of refusal in the presence of two witnesses.)
RELEASE OF GOODS
• Such goods shall be released :
-If the consignor or consignee are registered under this Act
-- On furnishing of security or executing a bond with surties in the prescribed form and manner (VAT 37) to the satisfaction of officer on duty
Note: The form of security not mentioned
If the consignor or consignee are not registered under this Act
- On furnishing a security in the form of cash or bank guarantee or crossed bank draft
= Penalty leviable rounded up to nearest hundred.
Non submission of documents at the nearest CP or ICC s.51(6)(b)
• If the owner or PIC of GV has not submitted the documents mentioned in ss (2) and (4)
• At the nearest CP or ICC
• On his entry into or before exit from that State
• THE GOODS SHALL BE DETAINED ALONG WITH VEHICLE
(The provisions of section 51(9) shall apply as discussed above)
• For a period not exceeding 72 Hours subject to order u/ss. (7)( c )
Recording statement and opportunity to prove genuineness by Detaining Officer and tfr of proceedings to Enquiry Officer s.51(7)(a)
• The Officer detaining the goods u/ss (6)
• Shall record the statement , if any , of consigner or consignee of goods or driver or PIC of Goods Vehicle
• And shall require him to prove the genuineness of the transaction with in 72 hours of the detention.
• Immediately thereafter, (i.e. after expiry of 72 Hours) the detaining officer shall submit the proccedings along with concerned records to designated officer (DO) for conducting necessary enquiry in the matter.
Proceedings by equiry officer where the goods and vehicle detained under 51(6)(a) 51(7) (b)
• The DO, before conducting inquiry
• Serve a notice on consignor or consignee of the goods detained u/ss(6)(a)
(As per Explanation 2 to section 51, service of notice on the representative of the owner or driver or PIC of goods vehicle shall be deemed to be valid service on the consignor or consignee of the goods.)
• And give him an opportunity of being heard
• And if after the enquiry such officer finds that there has been an attempt to avoid or evade the tax due or likely to be due under this Act
• He shall by order impose on consignor or consignee of the goods a penalty equal to 30% of the value of the goods
• In case he finds otherwise, he shall after recording reasons in writing order release of goods and vehicle if not already released
• The matter shall be finally decided with in a period of 14 days from the commencement of the enquiry proceedings.
Note: It is not 14 days after expiry of 72 hours from detention of goods, as it should generally be the case.
Proceedings by equiry officer where the goods and vehicle detained under 51(6)(b)
51(7)( c)
• The DO, before conducting inquiry
• Serve a notice on consignor or consignee of the goods detained u/ss(6)(b)
(As per Explanation 2 to section 51, service of notice on the representative of the owner or driver or PIC of goods vehicle shall be deemed to be valid service on the consignor or consignee of the goods.)
• And give him an opportunity of being heard
• And if after the enquiry such officer finds that the documents were not furnished at CP or ICC with a view to attempt to avoid or evade the tax due or likely to be due under this Act
• He shall by order for reasons to be recorded in writing impose on consignor or consignee of the goods a penalty equal to 50% of the value of the goods involved
• In case he finds otherwise, he shall after recording sufficient reasons in writing order release of goods and vehicle if not already released.
• He may however order release of goods on furnishing of security by consignor or consignee in form of cash or bank guarantee or crossed bank draft equal to amount of penalty imposable.
Note: Here there is no provision for release of goods on furnishing of surety bonds.
• The matter shall be finally decided with in a period of 14 days from the commencement of the enquiry proceedings.
Note: It is not 14 days after expiry of 72 hours from detention of goods, as it should generally be the case.
Proper receipt against cash security or penalty(VAT-38)
• Cash security u/ss 51(6)(a), 51(7)(c) and penalty imposed under ss 51(6)(a), 51(7)(c), 51(4) shall be received aginst receipt in VAT-38 only.
(Note: If the goods are detained u/s 51(6)(a), the detaining officer has power to release the goods on furnishing security or surety bond. But if the goods are held u/s 51(6)(b), the detaining officer does not have power to release the goods.
Further if the goods are detained u/s 51(6)(a), the enquiry officer can release the goods only if attempt to evade tax not found or penalty amount is realized. Enquiry Officer can not order release on furnishing of surety bond or security.)
Explanation :
• The detained goods and the vehicle shall continue to be detained beyond the period specified in ss(6) and (7) i.e. after expiry of 72 hours from detention or 14 days from commencement of enquiry
• Unless:
- Released by detaining officer or enquiry officer against surety or security as provided in ss (6) and (7) or
- Penalty imposed realized or
- Enquiry officer ordering release of goods detained after enquiry
Whichever is earlier.
Non Payment of Penalty till 30 days from date of communication of order imposing penalty s.51(8)
• If the penalty imposed u/ss(7) is not paid by consignor or consignee with in 30 days from the communication of order imposing penalty
• The goods detained shall be sold by auction in prescribed manner by the officer imposing penalty.
• If the goods detained are of perishable nature or subject to speedy or natural decay or expenses of keeping the goods are likely to exceed their value, the OIC of CP or ICC or Officer u/ss(2) shall ORDER immediate sale of such goods or otherwise dispose them off after notice to consignor or consignee in the prescribed manner
• The sale proceeds shall be deposited in State Govt Treasury and
• consignor or consignee shall be entitled to balance of amount after deducting the amount of penalty, interest and expenses and other incidental charges incurred in detaining and disposing of the goods.
Ist Proviso:
• If the consignor consignee does not come forward to claim the goods, then the entire sale proceeds shall be deposited in the state government treasury and no claim for balance amount shall be entertained from any person.
Appeal Effect
• If the order of detention of goods u/ss6 or
• The order of penalty u/ss (4) and (7) or
• Order u/ss (8)
Is in the meantime:
- Set Aside or Modified
- In Appeal or other proceedings
- The Officer imposing penalty shall give effect to orders in such appeal or other proceedings.
OBLIGATIONS OF TRANSPORTER S. 51(11) TO S. 51(13)
Transporter not to take delivery without genuine documents s. 51(11)
• No person or any individual including carrier of goods or agent of transport company or booking agency
• Acting on behalf of taxable person or registered person
• Shall take delivery of OR transport from any station , airport or any other place , whether of similar nature or otherwise – Any consignment of goods
• Other than personal luggage or goods for personal consumption
• The sale or purchase of which is taxable under this Act
• Except in accordance with prescribed conditions
• To ensure that there is no evasion or avoidance of tax imposed by or under this Act
Transporter failing to provide info about consignor or consignee or transporting w/o genuine documents s. 51(12)
• If the transporter fails to give information required u/ss (2) about consignor or consignee of the goods with in specified time OR
• Transports the goods without documents or with ingenuine documents
• He shall be liable to pay in addition to penalty leviable under this section
• The tax due on such goods at the VAT rate applicable under this Act.
Other Provisions of the Act shall apply s. 51(13)
• The provisions of this Act for levy and collection of tax and determination of interest and recovery of tax and interest shall apply to transporter
Explanation 1: Where goods are delivered to a carrier , a goods booking agency or other bailee for transportation , the movement of goods shall be deemed to commence at the time of delivery and terminate at the time when such delivery is taken from such a carrier , a goods booking agency or other bailee.
Maintenance of records by Carrier of Goods (Rule 66)
• Every carrier of goods or his agent
• Shall maintain a true account of
• Goods transported, delivered or received for transport
• Containing the particulars like name, address, registration number of consignor or consignee, value and description of goods.
• Such record shall be preserved for a period of 6 years.
Procedure of Accepting Goods from Taxable Person for Transportation (Rule 67)
• No carrier or his agent shall transport or accept for booking for transportation unless consignment covered by
- VAT Invoice, Retail Invoice, Delivery Challan
- If the value of Invoice exceeds Rs. 10000, VAT 36 in duplicate (not applicable)
• The transporter shall issue transport receipt in respect of goods received in Form VAT 39 and way bill in form VAT 40.
• The particulars of goods received for transportation shall be entered in a register VAT-41 (Despatch Register).
Procedure for delivery of Goods to taxable person(Rule 68)
• No Carrier or his agent shall accept delivery of goods coming from outside the state(Hence this Rule does not apply to acceptance of delivery of goods with in the state) unless
- Consignement covered by Invoice or delivery Challan
- Declaration in Form 36 duly filled in by consignor and stamped by OIC of ICC, if value of Invoice exceed Rs. 10000
- Goods Receipt originating from place of commencement of transportation
- Declration in VAT 12 duly stamped by OIC of ICC
• After receiving goods the transporter shall particulars in Register VAT-42(Delivery Register)
• The transporter shall obtain acknowledgement of goods delivered from taxable person or receiver of goods, duly signed and stamped on GR/TR and enter full particulars in VAT -42.
Note: Rule 67 and 68 do not apply to registered person or casual trader. Hence their particulars may or may not be included in VAT 41 and VAT 42.
True Account of Goods Received and Goods dispatched to be maintained by Taxable person (Rule 69)
- In Form VAT 43 (Bilti Inward Register) and VAT 44 (Bilti Outward register)
- No person or his authorized agent shall take delivery of goods, the sale or purchase of which is taxable under this Act, from or deliver the goods for booking to carrier of goods including agent of transport company or Booking agency unless:
a) a copy of purchase invoice or sale bill or VAT Invoice or Retail Invoice or cash memo or delivery challan or VAT 36 is furnished to transporter or his agent
b) Particulars of consignment intended to be booked are furnished in VAT-45 (Forwarding Note) to agent who takes delivery
c) VAT 43, VAT 44 is got authenticated from carrier of goods or agent of Transport Company or Booking Agency by Registered person(???? An anomaly)
d) Stamped Endorsement indicating his full particulars and R.C. No. is receorded on Transport Receipt by consignee.
e) If consignor or consignee is unregistered person and consignment is coming from place outside state or is required to be delivered outside state, Forwarding Note or Transport receipt should be counter signed by ETO or any officer authorized by him.
• If with a view to prevent or check – avoidance or Evasion f tax under this Act
• State Government, considers it necessary so to do
• It may by notification
• Direct for establishment of check post or ICC or both
• At such place or places, as may be specified in the notification.
Record to be carried with vehicle (2)
• The owner or person in charge (PIC)of a goods vehicle shall carry with him
i) A Goods Vehicle Record
ii) Goods receipt
iii) A Trip Sheet or Log Book
iv) A Sale Invoice or Bill or Cash Memo or Delivery Challan
containing prescribed particulars
• in respect of goods meant for the purpose of business as are being carried in the goods vehicle
• and produce a copy each of the aforesaid documents to an Officer Incharge of check post (OIC of CP)or ICC OR any other officer not below the rank of ETO checking vehicle
• at any place
Proviso Ist: DECLARATION AT ICC OR CHECK POST (VAT 12)
A person selling goods from with in or outside the state in course of interstate trade or commerce shall also furnish or cause to be furnished a declaration with prescribed particulars (VAT-12)
Note: It means a person not selling goods need not furnish declaration.
Proviso 2nd: EXIM FORM (VAT 36)
A taxable person , who sells or dispatches any goods from with in the state to a place outside the state or imports or brings any goods or otherwise receives goods from outside the state shall furnish particulars of goods in specified form obtained from designated officer, duly filled in and signed (VAT 36)
RULE 64: PROCEDURE FOR FURNISHING INFORMATION AT ICC
- The owner or PIC of GV shall submit before auth. Person (AP) at ICC duly signed original and copy of following documents :
a) transporter copy of VAT Invoice or Retail Invoice or deleivery challan
b) VAT 36 in duplicate (not applicable)
c) Goods Receipt (VAT 39)or trip sheet or way bill (VAT 40) or log book
d) Single declaration duly signed in form VAT -12 or VAT -35
- The AP of ICC shall retain original foil of declaration in VAT 12 or VAT 35 and generate duplicate computer print outs of VAT 12 or VAT 35(AP may charge appropriate service charges fixed by Commisioner for providing computer print outs) AND return duly signed and stamped copies of :
a) Duplicate copy of VAT Invoice or Retail Invoice or delivery challan and Goods Receipt (VAT 39)or trip sheet or way bill (VAT 40) or log book
b) copies of VAT 12 and VAT 35 in duplicate
c) Duplicate foil of VAT 36
Power to Stop and search vehicle, driver etc. (3)
• At every check post or ICC OR at any other place when so required by Officer u/ss(2)
• the driver or any other person incharge of goods vehicle (here no duty cast upon owner of the vehicle)
• shall stop the vehicle and keep it stationary as long as may reasonably be necessary
• and allow the officer in charge of the check post or ICC or aforesaid officer
to check the contents in the vehicle by breaking open the package or packages, if necessary and
inspect all the records relating to goods carried which are in possession of the driver or any other person as may be required by aforesaid officer and
if considered necessary such officer may also search the goods vehicle AND the driver or any other person incharge of the vehicle or goods
Note: the person in charge of goods can be searched u/s 51(3)
Furnishing of declaration at ICC by owner or PIC of Goods Vehicle s. 51(4)
• While entering the limits of state or leaving the limits of the state
• The owner or PIC of Goods vehicle
• Shall stop at the nearest CP or ICC and
• Shall furnish VAT 12 in triplicate along with documents carried in respect of goods carried in the vehicle before OIC of CP or ICC
• OIC shall return one copy of VAT 12 duly verified by him to owner or PIC of Goods vehicle to enable him to produce at the time of subsequent checking.
Ist Proviso : TRANSIT SLIP (VAT 35)
• Where goods bound for a place outside the state pass through the state
• The owner or PIC of GV shall furnish VAT 35 in duplicate
• And obtain from a copy of VAT 35 duly verified
• The owner or PIC of GV shall deliver that copy of VAT 35 to OIC of CP or ICC at the exit point of the state.
• If Owner or PIC of GV fails to do this, penalty = 50% of value of goods involved
By order of OIC of CP or ICC
After Giving an opportunity of being heard (3rd Proviso)
(Note: There is no provision for detention of goods and vehicle nor any provision for surety bond and security in place of penalty)
2nd Proviso: Break up of Transportation
• Where goods carried by a vehicle (mentioned in VAT 35) after entry into state
• Are transported outside state by another vehicle or conveyance
• The burder of proving that goods have actually moved out of the state shall lie upon owner or PIC of vehicle.
Power to examine transport receipt, other documents, account books of transporter AND break open any package(s) s.51(5)
• At every station of transport of goods, bus stand or place of loading or unloading of goods
• When so required by Commissioner or Designated officer (DO)
• The driver or owner of Goods Vehicle or employee of transport company or goods booking agency shall produce for examination
• Transport receipts and all other documents and account books concerning the goods – carried, transported, loaded, unloaded, consigned or received for transport
• Maintained in prescribed manner
• The Comm or DO for the purpose of examination that transport receipt or other documents or account books are in respect of goods- carried, transported, loaded, unloaded, consigned or received for transport shall have powers to break open any package or packages of such goods
When the goods meant for trade are not covered by proper and genuine documents s. 51(6)(a)
• If OIC of CP or ICC or officer mentioned in ss(2)
• Has reasons to suspect
• That The goods under transport are meant for trade AND are not covered by proper and genuine documents mentioned in ss. 2 and ss. 4 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 person concerned
• ORDER detention of goods along with vehicle
• for a period not exceeding 72 HOURS
(As per section 51(9),
-the officer detaining the goods shall issue to owner of goods or his representative or the driver or the PIC of GV
-a receipt specifying the description and quantity of goods so detained
- and obtain acknowledgement from such person or
- if such person refuses to give acknowledgement then record the fact of refusal in the presence of two witnesses.)
RELEASE OF GOODS
• Such goods shall be released :
-If the consignor or consignee are registered under this Act
-- On furnishing of security or executing a bond with surties in the prescribed form and manner (VAT 37) to the satisfaction of officer on duty
Note: The form of security not mentioned
If the consignor or consignee are not registered under this Act
- On furnishing a security in the form of cash or bank guarantee or crossed bank draft
= Penalty leviable rounded up to nearest hundred.
Non submission of documents at the nearest CP or ICC s.51(6)(b)
• If the owner or PIC of GV has not submitted the documents mentioned in ss (2) and (4)
• At the nearest CP or ICC
• On his entry into or before exit from that State
• THE GOODS SHALL BE DETAINED ALONG WITH VEHICLE
(The provisions of section 51(9) shall apply as discussed above)
• For a period not exceeding 72 Hours subject to order u/ss. (7)( c )
Recording statement and opportunity to prove genuineness by Detaining Officer and tfr of proceedings to Enquiry Officer s.51(7)(a)
• The Officer detaining the goods u/ss (6)
• Shall record the statement , if any , of consigner or consignee of goods or driver or PIC of Goods Vehicle
• And shall require him to prove the genuineness of the transaction with in 72 hours of the detention.
• Immediately thereafter, (i.e. after expiry of 72 Hours) the detaining officer shall submit the proccedings along with concerned records to designated officer (DO) for conducting necessary enquiry in the matter.
Proceedings by equiry officer where the goods and vehicle detained under 51(6)(a) 51(7) (b)
• The DO, before conducting inquiry
• Serve a notice on consignor or consignee of the goods detained u/ss(6)(a)
(As per Explanation 2 to section 51, service of notice on the representative of the owner or driver or PIC of goods vehicle shall be deemed to be valid service on the consignor or consignee of the goods.)
• And give him an opportunity of being heard
• And if after the enquiry such officer finds that there has been an attempt to avoid or evade the tax due or likely to be due under this Act
• He shall by order impose on consignor or consignee of the goods a penalty equal to 30% of the value of the goods
• In case he finds otherwise, he shall after recording reasons in writing order release of goods and vehicle if not already released
• The matter shall be finally decided with in a period of 14 days from the commencement of the enquiry proceedings.
Note: It is not 14 days after expiry of 72 hours from detention of goods, as it should generally be the case.
Proceedings by equiry officer where the goods and vehicle detained under 51(6)(b)
51(7)( c)
• The DO, before conducting inquiry
• Serve a notice on consignor or consignee of the goods detained u/ss(6)(b)
(As per Explanation 2 to section 51, service of notice on the representative of the owner or driver or PIC of goods vehicle shall be deemed to be valid service on the consignor or consignee of the goods.)
• And give him an opportunity of being heard
• And if after the enquiry such officer finds that the documents were not furnished at CP or ICC with a view to attempt to avoid or evade the tax due or likely to be due under this Act
• He shall by order for reasons to be recorded in writing impose on consignor or consignee of the goods a penalty equal to 50% of the value of the goods involved
• In case he finds otherwise, he shall after recording sufficient reasons in writing order release of goods and vehicle if not already released.
• He may however order release of goods on furnishing of security by consignor or consignee in form of cash or bank guarantee or crossed bank draft equal to amount of penalty imposable.
Note: Here there is no provision for release of goods on furnishing of surety bonds.
• The matter shall be finally decided with in a period of 14 days from the commencement of the enquiry proceedings.
Note: It is not 14 days after expiry of 72 hours from detention of goods, as it should generally be the case.
Proper receipt against cash security or penalty(VAT-38)
• Cash security u/ss 51(6)(a), 51(7)(c) and penalty imposed under ss 51(6)(a), 51(7)(c), 51(4) shall be received aginst receipt in VAT-38 only.
(Note: If the goods are detained u/s 51(6)(a), the detaining officer has power to release the goods on furnishing security or surety bond. But if the goods are held u/s 51(6)(b), the detaining officer does not have power to release the goods.
Further if the goods are detained u/s 51(6)(a), the enquiry officer can release the goods only if attempt to evade tax not found or penalty amount is realized. Enquiry Officer can not order release on furnishing of surety bond or security.)
Explanation :
• The detained goods and the vehicle shall continue to be detained beyond the period specified in ss(6) and (7) i.e. after expiry of 72 hours from detention or 14 days from commencement of enquiry
• Unless:
- Released by detaining officer or enquiry officer against surety or security as provided in ss (6) and (7) or
- Penalty imposed realized or
- Enquiry officer ordering release of goods detained after enquiry
Whichever is earlier.
Non Payment of Penalty till 30 days from date of communication of order imposing penalty s.51(8)
• If the penalty imposed u/ss(7) is not paid by consignor or consignee with in 30 days from the communication of order imposing penalty
• The goods detained shall be sold by auction in prescribed manner by the officer imposing penalty.
• If the goods detained are of perishable nature or subject to speedy or natural decay or expenses of keeping the goods are likely to exceed their value, the OIC of CP or ICC or Officer u/ss(2) shall ORDER immediate sale of such goods or otherwise dispose them off after notice to consignor or consignee in the prescribed manner
• The sale proceeds shall be deposited in State Govt Treasury and
• consignor or consignee shall be entitled to balance of amount after deducting the amount of penalty, interest and expenses and other incidental charges incurred in detaining and disposing of the goods.
Ist Proviso:
• If the consignor consignee does not come forward to claim the goods, then the entire sale proceeds shall be deposited in the state government treasury and no claim for balance amount shall be entertained from any person.
Appeal Effect
• If the order of detention of goods u/ss6 or
• The order of penalty u/ss (4) and (7) or
• Order u/ss (8)
Is in the meantime:
- Set Aside or Modified
- In Appeal or other proceedings
- The Officer imposing penalty shall give effect to orders in such appeal or other proceedings.
OBLIGATIONS OF TRANSPORTER S. 51(11) TO S. 51(13)
Transporter not to take delivery without genuine documents s. 51(11)
• No person or any individual including carrier of goods or agent of transport company or booking agency
• Acting on behalf of taxable person or registered person
• Shall take delivery of OR transport from any station , airport or any other place , whether of similar nature or otherwise – Any consignment of goods
• Other than personal luggage or goods for personal consumption
• The sale or purchase of which is taxable under this Act
• Except in accordance with prescribed conditions
• To ensure that there is no evasion or avoidance of tax imposed by or under this Act
Transporter failing to provide info about consignor or consignee or transporting w/o genuine documents s. 51(12)
• If the transporter fails to give information required u/ss (2) about consignor or consignee of the goods with in specified time OR
• Transports the goods without documents or with ingenuine documents
• He shall be liable to pay in addition to penalty leviable under this section
• The tax due on such goods at the VAT rate applicable under this Act.
Other Provisions of the Act shall apply s. 51(13)
• The provisions of this Act for levy and collection of tax and determination of interest and recovery of tax and interest shall apply to transporter
Explanation 1: Where goods are delivered to a carrier , a goods booking agency or other bailee for transportation , the movement of goods shall be deemed to commence at the time of delivery and terminate at the time when such delivery is taken from such a carrier , a goods booking agency or other bailee.
Maintenance of records by Carrier of Goods (Rule 66)
• Every carrier of goods or his agent
• Shall maintain a true account of
• Goods transported, delivered or received for transport
• Containing the particulars like name, address, registration number of consignor or consignee, value and description of goods.
• Such record shall be preserved for a period of 6 years.
Procedure of Accepting Goods from Taxable Person for Transportation (Rule 67)
• No carrier or his agent shall transport or accept for booking for transportation unless consignment covered by
- VAT Invoice, Retail Invoice, Delivery Challan
- If the value of Invoice exceeds Rs. 10000, VAT 36 in duplicate (not applicable)
• The transporter shall issue transport receipt in respect of goods received in Form VAT 39 and way bill in form VAT 40.
• The particulars of goods received for transportation shall be entered in a register VAT-41 (Despatch Register).
Procedure for delivery of Goods to taxable person(Rule 68)
• No Carrier or his agent shall accept delivery of goods coming from outside the state(Hence this Rule does not apply to acceptance of delivery of goods with in the state) unless
- Consignement covered by Invoice or delivery Challan
- Declaration in Form 36 duly filled in by consignor and stamped by OIC of ICC, if value of Invoice exceed Rs. 10000
- Goods Receipt originating from place of commencement of transportation
- Declration in VAT 12 duly stamped by OIC of ICC
• After receiving goods the transporter shall particulars in Register VAT-42(Delivery Register)
• The transporter shall obtain acknowledgement of goods delivered from taxable person or receiver of goods, duly signed and stamped on GR/TR and enter full particulars in VAT -42.
Note: Rule 67 and 68 do not apply to registered person or casual trader. Hence their particulars may or may not be included in VAT 41 and VAT 42.
True Account of Goods Received and Goods dispatched to be maintained by Taxable person (Rule 69)
- In Form VAT 43 (Bilti Inward Register) and VAT 44 (Bilti Outward register)
- No person or his authorized agent shall take delivery of goods, the sale or purchase of which is taxable under this Act, from or deliver the goods for booking to carrier of goods including agent of transport company or Booking agency unless:
a) a copy of purchase invoice or sale bill or VAT Invoice or Retail Invoice or cash memo or delivery challan or VAT 36 is furnished to transporter or his agent
b) Particulars of consignment intended to be booked are furnished in VAT-45 (Forwarding Note) to agent who takes delivery
c) VAT 43, VAT 44 is got authenticated from carrier of goods or agent of Transport Company or Booking Agency by Registered person(???? An anomaly)
d) Stamped Endorsement indicating his full particulars and R.C. No. is receorded on Transport Receipt by consignee.
e) If consignor or consignee is unregistered person and consignment is coming from place outside state or is required to be delivered outside state, Forwarding Note or Transport receipt should be counter signed by ETO or any officer authorized by him.
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