DHANPAL Vs. STATE OF KARNATAKA FINANCE DEPARTMENT BANGALORE

JUDGEMENT

(1.) THE petitioner claims to be the owner of vehicle bearing registration No KA-5 D 1333. It is the case of the petitioner that this vehicle was carrying goods namely latex from Cochin, Kerala State to Kanpur in Uttar Pradesh and the goods was being carried on behalf of transporters M/s Roshan Freight Carriers (Kanpur), which had an office at Cochin and which had hired the vehicle of the petitioner for such purpose.

(2.) THE vehicle was to pass through the State of Karnataka and though by such passing of vehicle through the State of Karnataka with its goods, it was not liable to pay any tax in the State of Karnataka, particularly under the provisions of the Karnataka Sales Tax Act, 1957 [for short, the Act), the vehicle nevertheless will be subject to checking at the entry point when it enters the State of Karnataka and at that stage the vehicle will be issued with a transit pass, which the person in-charge of the vehicle is required to surrender at the exit point when the vehicle exits the State of Karnataka, which in turn absolves the person carrying the goods in transit through the State of Karnataka from payment of any tax under the Act.

(3.) THE vehicle which had entered the State of Karnataka in whose favour the transit pass has been issue, if it fails to produce the transit pass at the exit point, as per the schedule or within the reasonable time, under the provisions of Section 28-AA (4) of the Act, it has to be presumed that the person could have sold the goods within the State of Karnataka i. e. the owner of the vehicle has sold the goods within the State and the owner can be assessed accordingly to tax by the authorized officer in the prescribed manner.