66. Establishment of check posts and inspection of goods and movement of vehicles.-

(1) If the State Government or the Commissioner considers 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, may, by notification, 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) The owner or person in-charge of a goods vehicle shall;

(a) Carry with him a goods vehicle record, a trip sheet or a log book, as the case may be; and

(b) Carry with him a bill of sale or a delivery note obtained from the prescribed authority or such other documents, containing such particular as may be prescribed, in respect of the goods carried in the goods vehicle; and

(c) Produce the documents referred to in sub-clause (b) before any officer in-charge of check post or barrier or any other officer as may be empowered by the State Government in this behalf and obtain seal of such officer affixed thereon, and in respect of a bill of sale, shall give one copy thereof and in respect of a delivery note, shall give a copy marked as original, to such officer and carry and retain with him the other copy until termination of movement of the goods; and

(d) On entering the State limits, report at the first situate check post or barrier and on leaving the State limits report at the last situate check post or barrier and shall give a declaration containing such particulars as may be prescribed in respect of the goods carried in the goods vehicle before any officer in-charge of the check post or barrier or any other officer as may be empowered by the State Government or the Commissioner in this behalf;

(3) (a) At every check post or barrier or at the other place when so required by any officer empowered by the State Government or the Commissioner in this behalf, the driver or any other person-in-charge of a goods vehicle shall stop the vehicle, 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 and inspect all records relating to the goods carried, which are in possession of such driver or the person-in-charge, who shall, if so required, give his name and address and the name and address of the owner of the vehicle;

(b)Where any goods vehicle is intercepted by the officer empowered at any place other than a check post or barrier, such officer may, if he deems it necessary, direct the owner or person in-charge of the goods vehicle to take it to the nearest check post or police station and such owner or person in-charge of goods vehicle shall comply with such directions.

(4) For purposes of sub-section (2) and (3), the officer in-charge of the check post or barrier shall be an officer as may be prescribed or as may be authorized by the Commissioner;

(5) (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, shops, godown, vessel, receptacle, vehicle or any other place of business or any building or place, any officer empowered to exercise the powers under sub-section (3) 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 documents relating to such goods. The carrier or bailee or the person in-charge of the goods or records shall give all facilities for such examination or inspection and shall, if so required, produce the bill of sale or delivery note or other document referred to in sub-section (2) 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) The power to seal any box or receptacle, godown or building or any part of the godown or building in which accounts or taxable goods are suspected to be kept or stored, where the carrier or bailee or person-in-charge of the place of business either leaves the premises or is not available or fails or refuse to open any box or receptacle, godown or building or any part of the godown or building when called upon to do so;

(ii) The power to break open the box or the receptacle, godown or building or part of the godown or building where the carrier or bailee or the person in-charge of the place of business leaves the premises, or, after, an opportunity having been given to him to do so, fails to open the receptacle, godown or building or part of the godown or building and the officer acting under this sub-clause shall prepare a list of the goods and documents found therein;

(6) (a) If any officer empowered to enter into and search any office, shop, godown, receptacle, vehicle or any other place of business or any building or place where a carrier or bailee keeps the goods delivered to him for transmission, has reason to suspect that such carrier or bailee has colluded with the owner of the goods in evading payment of any tax, he may for reasons to be recorded in writing, seized accounts, registers, records or other document of the bailee or carrier as he may consider necessary and shall give a receipt for the same. The accounts, registers, records and other documents seized shall be retained by such officer only for so long as may be necessary for their examination and for any enquiry or proceedings under this Act;

(b) The accounts, registers, records and other documents so seized shall not be retained by such officer for a period exceeding one hundred eighty days from the date of seizure, unless the reasons for retaining the same beyond the said period are recorded by him in writing and the approval of the next higher authority is obtained and such approval in any case shall not be for more than sixty days at a time.

(c) Where such officer, upon examining the accounts, registers, records or other documents seized under clause (a) have reason to believed that any dealer has attempted to evade payment of any tax, he may issue a presumptive assessment on such dealer in accordance with sub-section (7) of Section 37.

(7) All searches and seizures under sub-section (5) or (6) shall be made in accordance with the provisions of the Code of Criminal Procedure, 1973 (Central Act 2 of 1974)

(8) No person shall tamper with any seal put under clause (i) of clause (b) of sub-section (5);

(9) Where the officer in-charge of the check post or barrier, or the officer empowered as aforesaid on interception of the goods vehicle or inspection of any godown, is of the opinion that further verification is necessary with respect to either accuracy of the particulars furnished in the documents accompanying the goods under transport or in transit or as to the sufficiency and the cause adduced in respect of any contravention of sub-section (2), he may verify the particulars himself or if it is necessary cause it to be verified by referring the matter to any other officer and if such verification is not likely to be completed within a reasonable time, he may direct in writing the carrier or the person in-charge of the goods vehicle or the godown not to deliver the goods until permitted to do so by him or such other officer to whom the matter is referred for verification and allow the intercepted vehicle, if any, to pass through;

(10) The verification under sub-section (9), shall be completed within a period of fifteen days from the date of the direction issued under that sub-section and where such verification cannot be completed within the aforesaid period the officer who has issued such direction, or as the case may be, the officer to whom the matter is referred for verification shall obtain the permission in writing from the next higher authority to extend such period for completion the verification, however, such extension shall not be permitted for a period exceeding fifteen days at a time.

(11) Where such officer or other officer to whom the matter is referred, upon such verification is of the opinion that there is a non-compliance with sub-section (2) of this Section, he shall proceed in respect of such goods in the custody of the carrier, or the person in-charge of vehicle or the godown in accordance with sub-section (12) and (14) of this Section.

(12) Where the officer in charge of the check post or any empowered officer has issued the notice for contravention of any of the provisions of this Section, further proceeding in pursuance to such notice may, subject of such conditions in such manner as may be prescribed, be continued by any other officer empowered by the Commissioner in this behalf, from the stage at which it is pending.

(a) The officer in-charge of a check post or a barrier or any other officer in respect of any contravention of, or non-compliance with the provision of sub-section (2), (3), (5) or (8), for which sufficient cause is not furnished, levy a penalty which shall not be less than double the amount of tax leviable and not exceeding three time the amount of tax leviable in respect of the goods under transport.

(b) Where the amount of penalty leviable is more than the value of the goods, the amount of penalty leviable shall be restricted to such value.

(13) In respect of contravention of sub-section (12), where the penalty levied is not paid, the carrier or bailee or person in-charge of the goods vehicle shall jointly and severally be liable to pay such penalty and such amount of penalty be deemed to be an amount due under the Act. Before levying any penalty under this sub-section, the officer shall give the person in-charge of the goods vehicle or carrier or bailee, or a dealer registered under the Act, as the case may be, a reasonable opportunity of being heard.

(14) Where the destination of the goods to be delivered in the State is not less than one hundred kilometers, from the check post or barrier or any other place at which the goods vehicles is intercepted, the period for affording reasonable opportunity of being heard shall not be less than five days.

(15)(a) Where the penalty levied is not paid, the officer levying the penalty shall have power to take possession of so much of the goods as in his opinion could be sufficient to meet the amount of penalty levied and retain the same with him until the penalty levied is paid or for five days, whichever is earlier.

(b)Where it is not practicable to take possession of only so much of the goods as would be sufficient to meet the amount of penalty levied for the reason that the goods vehicle is a tanker carrying goods in liquid or gaseous form or that the goods is a single unit not separable into any part thereof, the officer levying the penalty shall have power to take possession of the goods vehicle or the entire goods, as the case may be, and retain the same with him until the penalty levied is paid, or for ten days, whichever is earlier.

(c) After the expiry of five days, if the penalty is not paid, the officer shall dispose of the goods in public auction and adjust the sale proceeds toward penalty, the excess amount shall, after deducting the charges incurred by the State, be refunded in the manner prescribed.

(d) Before taking possession or within five days after taking possessions of the goods or the goods vehicle, as the case may be, if the owner or the person in-charge of the goods vehicle or the dealer registered under the Act, furnishes for the amount of penalty a bank guarantee having validity until realization of the penalty or disposal of appeal, if any, made under this Act, the officer taking such possession shall forthwith return the goods or the goods vehicle to the person furnishing such bank guarantee.

(e)In the case of perishable goods, the officer may dispose of the same before the expiry of the period of five days, if in his opinion such disposal is necessary.

(16) (a) The person aggrieved by the levy of penalty under this Section may appeal within thirty days from the date on which the order of penalty was served on the person, to the prescribed authority.

(b)Where the person aggrieved is a dealer registered under the Act, such person may appeal to such authority as may be prescribed.

Such appeal shall be dealt with as if it were an appeal filed under this Act, and all the provisions of the said Section shall mutatis mutandis apply to such appeal.