76. Transit of goods by road through the State and issue of transit pass.

(1) Where a goods vehicle is carrying goods taxable under this Act,—

(a) from any place outside the State and is bound for any place outside the State, and in course of its movement passes through the State; or

(b) imported into the country from any place outside the country and such goods are being carried through the State to any place outside the State;

the driver or the person-in-charge of such goods vehicle or the transporter shall make, in the prescribed manner a declaration that the goods being so transported in his goods vehicle shall not be unloaded, delivered or sold in the State and obtain a transit pass containing such particulars as may be prescribed, from the officer-in-charge of the first check-post or barrier on entry into the State (hereinafter referred to as the entry check-post) or where there is no check-post from such officer as empowered by the Commissioner in this regard, after entry of the goods vehicle into the State, and shall produce it along with goods mentioned in such transit pass before the officer-in-charge of the check-post or barrier or such officer empowered by the Commissioner, before his exit from the State (hereinafter referred to as the exit check-post) and obtain his endorsement with his seal and signature, in proof of such exit from the State.

(2) Where any goods consigned from any place outside the State are brought into the State at any place by railway or by air or by post or by steamer or boat for transport outside the State by road, the driver or person in-charge of the goods vehicle or the transporter carrying goods from railway station or airport or post office, or steamer or boat station, as the case may be, to the place outside the State shall obtain transit pass in the prescribed manner and in the prescribed form, from such officer as empowered by the Commissioner, in whose jurisdiction such railway station or airport, or post office, or steamer or boat station is situated, and shall produce the goods vehicle along with the goods mentioned in such transit pass before the officer-in-charge of the check-post or barrier, or where there is no such check-post or barrier, before such officer as empowered by the Commissioner in this regard, before exit of the goods vehicle from the State (hereinafter referred to as the exit check-post) and obtain his endorsement with his seal and signature, in proof of such exit from the State. For the purpose of this sub-section, the office of the officer empowered by the Commissioner and having jurisdiction over the area in which such railway station or airport or post office, or steamer or boat station is situated shall be deemed to be the entry check-post.

(3) Where any goods are brought from a place outside the State by road and after entry of such goods into the State the same are to be transported to a place outside the State either by railway or by air or by post or by river, the driver or the person-in-charge of the vehicle, or the transporter while obtaining transit pass from the entry check-post shall state the fact to this effect in the application for obtaining transit pass. The driver or the person-in-charge of such vehicle, or the transporter shall also mention the authority before whom, the transit pass along with copy of goods receipt is to be produced for endorsement. For the purpose of this sub-section, the office of the officer as empowered by the Commissioner in this regard and having jurisdiction over the area in which such railway station or airport or post office, or steamer or boat station is situated shall be deemed to be the exit check-post. The officer in-charge of the entry check-post after making such enquiries as he deems fit shall issue transit pass. The driver or the person-in-charge of the vehicle, after handing over goods to railway or airway or post office or steamer or boat, as the case may be, produce copies of the transit pass along with goods receipt note issued by railway or air port authority or post-office or steamer owner before such officer empowered by the Commissioner to be deemed officer-in-charge of the exit check-post mentioned in the transit pass for endorsement on them.

(4) Where it appears to the officer-in-charge of the entry check-post or barrier or to the officer empowered by the Commissioner in this regard that the driver or the person-in-charge of the vehicle, or the transporter is not giving correct and complete documents relating to the consignment of the goods and correct information about the ownership of the goods and their destination and also in a case where the transporter of the goods has no permanent address within the State, the officer-in-charge of the entry check-post or the officer empowered by the Commissioner shall before issuing the transit pass, require the driver or the person-in-charge of the vehicle, or the transporter to furnish a security equivalent to the amount of tax calculated on the goods at the rate of tax prevailing in the State, in the form of a demand draft, call deposit or guarantee from a Scheduled Bank.

The security so furnished shall be released to the person who furnished the security on submission of the transit pass as per provision of sub-section (6). If, however, the transit pass is not submitted in time as provided in the said sub-section or is submitted without due endorsement(s) as provided in the same sub-section, the amount of such security shall be adjusted against the amount of tax that may be assessed under sub-section (6) and shall be deposited into the Government account.

(5) Where goods carried by a goods vehicle coming from any place outside the State are required to be unloaded temporarily at any place within the State for the purpose of transhipment or for any other purpose, the driver or the person-in-charge of the goods vehicle shall give a declaration to this effect before the officer-in-charge of the entry check-post or barrier or the officer empowered by the Commissioner in this regard, mentioning the exact place of such temporary unloading while applying for the transit pass. Before unloading, even temporarily, any goods for which transit pass has been issued, at any place within the State, the driver or the person-in-charge of the vehicle, or the transporter of the goods shall inform the officer empowered by the Commissioner in this regard, under whose jurisdiction the place of such unloading falls and such unloading and subsequent loading in the same goods vehicle or in a different goods vehicle shall be done in presence of the such officer and an endorsement of such officer to this effect with his seal and signature shall be obtained on the transit pass:

Provided that where any transshipment of goods is made by the driver or the person in-charge of the vehicle, or the transporter under any compelling circumstances and if the fact of such transshipment was not declared by him at the entry check-post or before the officer empowered by the Commissioner in this behalf, he shall adduce reasons for doing so before such officer along with supporting evidence wherever necessary, and if such officer is satisfied with the reasons adduced or evidence produced by the driver or the person-in-charge of the vehicle, or the transporter, he shall make an endorsement on the document containing the declaration as required and return the same to the driver or the person-in-charge of the goods vehicle or the transporter and allow the movement of the vehicle, carrying such goods outside the State:

Provided further that the Commissioner may, for the purpose of this sub-section, constitute a separate group of officers for any place in the State, who shall supervise such unloading and re-loading at that place and shall put the endorsement on the transit pass accordingly.

(6) The driver or the person in-charge of the goods vehicle or the transporter of the goods shall submit the transit pass with the endorsement of the officer-in-charge of the exit check-post or barrier, or any officer empowered by the Commissioner in this behalf and also the endorsement of such officer as provided in sub-section (5), in case of a transshipment of the goods within the State, to the officer-in-charge of the concerned entry check-post within thirty days from the date of its issue, failing which it shall be presumed that the goods carried by the goods vehicle have been sold within the State by the driver or the person in-charge of the goods vehicle or boat, or the transporter or the carrier of the goods and all provisions of this Act shall, so far as may be applicable, be applicable as if such driver or the person-in-charge of the vehicle, or transporter were a dealer within the meaning of clause (15) of section 2 and the officer-in-charge of the entry check-post or barrier, or the officer empowered by the Commissioner in this behalf were the Prescribed Authority with power of assessment having jurisdiction in respect of this dealer to assess his liability to tax and to impose interest or penalty.

(7) If the officer-in-charge of the entry check-post or any other officer from whom transit pass was obtained is satisfied that the owner, driver or person-in-charge of the vehicle, or the transporter has failed to submit the transit pass with endorsements in time as provided under sub-section (6) without any reasonable cause, such officer may, after giving the person concerned a reasonable opportunity of being heard, impose upon him, in addition to tax, a penalty equal to three times of such tax.

(8) If the owner, driver or the person-in-charge of the vehicle, or the transporter fails to obtain a transit pass without any reasonable cause, in a case where he was liable to obtain such a transit pass under this section, the officer-in-charge of the entry check-post or deemed entry check-post or any officer empowered by the Commissioner in this behalf shall after giving the person concerned a reasonable opportunity of being heard, impose upon him a penalty equal to three times of the tax calculated on the goods carried by the goods vehicle at the rate of tax prevailing in the State and shall also realise security equivalent to the amount of tax so calculated. If the person concerned fails to pay the penalty and the security, the goods shall be seized under the provision of sub-section (5) and shall be disposed of as per provision of sub-section (9) of section 75.

(9) If, at the exit check post or deemed exit check post or at any point of movement of the goods carried by the vehicle, within the State or at the place of transhipment of the goods, the goods are not found in accordance with the transit pass, it shall be presumed that the goods carried by such goods vehicle have been sold within the State and in such case the officer-in-charge of the exit check-post or any other officer as may be empowered, may, after giving the driver or the person-in-charge of the vehicle, or the transporter a reasonable opportunity of being heard, impose upon him in addition to tax, a penalty equal to three times of such tax on the portion of the goods not found in accordance with the transit pass and also on any unaccounted for goods carried by the goods vehicle without obtaining transit pass.

For the purpose of this sub-section, the driver or the person-in-charge of the vehicle, or the transporter shall be deemed to be a dealer within the meaning of clause (15) of section 2 and the officer-in-charge of the exit check-post or deemed exit check-post or the officer empowered by the Commissioner in this behalf shall be deemed to be the Prescribed Authority with power of assessment having jurisdiction in respect of this dealer to assess his liability to tax and to imposed interest or penalty.