(1) If the Government, considers it necessary that, with a view to preventing or checking evasion of tax under this Act in any place or places in the State, it is necessary so to do, it may, by notification in the Official Gazette, direct the establishment of a check-post or the erection of a barrier, or both, at such place or places as may be notified.

(2) At every check-post or barrier, or at any other place when so required by any officer empowered by the Commissioner in this behalf, the driver or any other person-in-charge of a goods vehicle shall stop the vehicle, as the case may be, and keep it stationary as long as may be required by the officer-in-charge of the check post or barrier or the officer empowered as aforesaid, to examine the contents in the vehicle, 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 driver or other person-in-charge, who shall, if so required, give his name and address and, the name and address of the owner of the goods vehicle as well as those of the consignor and consignee of the goods and also furnish such other information, as may be required by the aforesaid officer, who may also search the goods vehicle or part thereof and the driver or the person-in-charge of the goods vehicle or the goods, if he considers it necessary.

Explanation. - The officer-in-charge of the check post shall be an officer appointed to assist the Commissioner and posted to the check-post, but not below the rank of the Superintendent of Taxes.

(3) The owner or the person in charge of a goods vehicle shall carry with him,-

(a) such documents as may be prescribed; and

(b) a goods vehicle record, a trip sheet or a log book, as the case may be, containing such particulars as may be prescribed in respect of the goods carried in the goods vehicle and produce the same before any officer-in-charge of a check-post or barrier or any other officer as may be empowered by the Commissioner in this behalf.

(3A) The owner of any goods or the transporter of such goods or the person in-charge of the goods vehicle carrying such goods shall also furnish relevant information in the electronic format online as may be prescribed.

(4) (a) If it appears to the officer-in-charge of the check-post or any officer empowered by the Commissioner in this behalf that the driver or the person-in-charge of the goods vehicle is not giving the correct name and address of the owner of the goods vehicle or of the consignor or consignee of the goods, and if the said authority after making such enquiry as he deems fit, finds that in order to prevent any evasion of tax payable under this Act and to ascertain the correct name and address of the owner of the goods vehicle or of the consignor or the consignee of the goods it is necessary to detain the goods, he shall detain the goods either in the check-post or elsewhere as long as may be necessary:

Provided that no such goods shall be detained by the said authority for more than forty eight hours except with the permission of the next higher authority.

(b) When any goods are detained under clause (a), the authority 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-in-charge of the goods vehicle 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 in the presence of two witnesses.

(5) If on an examination of the contents in the goods vehicle or the inspection of records relating to the goods carried, the officer-in-charge of a check-post or barrier or any officer empowered by the Commissioner in this behalf has reason to believe that the owner or the person-in-charge of such goods vehicle is not carrying the documents as required by sub-section (3) or is not carrying proper and genuine documents or is attempting to evade payment of the tax due under this Act, or that the sale or purchase of the goods for the purpose of payment of tax under this Act has not been properly accounted for, he may, for reasons to be recorded in writing seize the goods and documents relating to the goods and the documents of the vehicle:

Provided that a list of all the goods and the documents seized under this sub-section shall be prepared by such officer and be signed by the officer and not less than two witnesses.

(6) The officer detaining or seizing the goods shall record the statement, if any, given by the owner of the goods or his representative or the driver or other person-in-charge of the vehicle. 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 under this Act, he shall, by an 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-in-charge of the goods or the driver or person-in-charge of the vehicle, in which the goods are being carried, on the person-in-charge of the goods or the goods vehicle or the driver, deeming such person to be the owner of the goods, a penalty calculated on the value of the goods at three times the rate of tax applicable on sale or purchase of such goods, and direct him to deposit, in addition to the penalty, advance tax calculated on the deemed sale value of the goods at applicable rate of tax on sales of such goods which shall be adjustable with the liability to tax incurred on the purchase or the sale of such goods or the sale of goods manufactured therefrom, and in case he finds otherwise, he shall order the release of the goods:

Provided 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 the person-in-charge of the goods or the goods vehicle or the driver, as the case may be, has been given a reasonable opportunity of being heard.

(7) The officer in charge of the check-post or the officer empowered by the Commissioner under sub section (2) may release the goods to the owner of the goods or to any person duly authorised by such owner on payment of the penalty and the advance tax under sub section (6).

(8) The goods detained or the goods and documents so seized may be released by the officer detaining or seizing the goods, if the owner or his agent or the person-in-charge of the goods vehicle requests for time to adduce further evidence in respect of goods ordered to be detained under clause (a) of sub-section (4) or seized under sub-section (5) subject to furnishing of security to the satisfaction of such officer in the form of a bank draft or a call deposit or a guarantee from a Scheduled Bank, equivalent to penalty and advance tax calculated in the manner laid down in sub-section (6):

Provided that where the owner or his agent or the person-in-charge of the goods vehicle exercises the option of paying tax and penalty as per provision of sub-section (6), the officer-in-charge of the check-post or the officer empowered in this behalf instead of detaining or seizing the goods or the documents relating to the goods shall release the same.

(9) If the tax and penalty imposed under sub-section (6) is not paid or the security as provided in sub-section (8) is not furnished forthwith or the goods are not claimed by any person, the officer-in-charge of the check-post or any officer empowered by the Commissioner shall arrange for safe custody and sale of the goods by public auction and for this purpose the provisions contained in clause (f), clause (g) and clause (h) of sub-section (5) of section 74, in so far as may be applicable, shall apply.

(10) Where any goods are in movement within the territory of the State, an officer empowered by the Commissioner in this behalf may stop the goods vehicle or the carrier or the person carrying such goods, for inspection, at any place within his jurisdiction and provisions of this section in respect of detention, seizure or disposal of such goods shall mutatis mutandis, apply.

(11) Where a transporter, while transporting goods, is found to be in collusion with any dealer to avoid or evade tax, the officer-in-charge of the check-post or the officer empowered by the Commissioner, shall detain the goods vehicle or the carrier of such transporter, and after affording him a reasonable opportunity of being heard and with prior approval in writing of the Commissioner, may confiscate such goods vehicle or carrier.

(12) (a) Where goods are delivered to a carrier or other bailee for transmission, the movement of the 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. Where before delivery is taken from him, a carrier or bailee to whom goods are delivered for transmission, keeps the said goods in any office, shop, godown, vessel, receptacle, goods vehicle or any other place of business or any building or place, any officer appointed to assist the Commissioner under sub-section (1) of section 3 shall have power to enter and search such office, shop, godown, vessel, receptacle, goods vehicle or other place of business or building or place, and to examine the goods and inspect all documents 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 documents referred to in sub-section (3) and give a declaration containing such particulars 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.

(b) The power conferred by clause (a) shall also include,-

(i) power to seize any books of accounts;

(ii) power to seize any goods;

(iii) power to break open the lock of any door, box, locker, safe, almirah or other receptacle in the office, shop, godown, vessel, vehicle, place of business, building or place where goods are kept by a transporter or bailee;

(iv) power to seal the place of business, goods vehicle or any box, locker, safe, almirah or other receptacle found in such place of business;

(v) power to levy tax and penalty;

(vi) power to auction goods; and

for this purpose, all the provisions of section 74 and of this section in this regard shall, mutatis mutandis, apply.