GOPAL AGENCY Vs. STATE OF UTTAR PRADESH

JUDGEMENT

(1.) An interesting question of law arises in this case and having heard learned counsel for the parties we are disposing of this writ petition in accordance with the provisions of Chapter XXII of the Rules of the Court.

(2.) The writ petition challenges the authority of the respondents to impose and charge penalty on the trucks engaged by the petitioner only because the trucks failed to clear the specified check post in the transit pass within the stipulated time and date. It was contended that the Sales Tax Act, 1948, was enacted to provide for the levy of a tax on the sale or purchase of goods in U.P. and since there was neither any sale nor purchase of the goods carried by the truck in question inside the State of Uttar Pradesh. Further neither any tax nor any penalty was leviable. The provisions of the Sales Tax Act did not provide for levy of penalty under Section 15-A of the Act. It was further contended that the imposition of penalty under Section 15-A(1)(r) and Section 14(1)(e) of the Act were bad in law, their vires were also questioned.

(3.) The petitioner engaged trucks for carrying coal from the States of Bihar and Bengal to the State of Madhya Pradesh and its trucks travel over the State of Uttar Pradesh. The trucks generally enter the State of Uttar Pradesh at the Naubatpur check post in the district of Varanasi and obtained a transit pass under Section 28-B read with Rule 87 of the U.P. Sales Tax Rules, 1948. The pass contains the date of entry and the time and date of its exit at the specific check post before entering into the State of Madhya Pradesh. In the present case the transit pass mentioned the sales tax exit barrier at Fatehpur Sikri, District Agra. The petitioner's truck No. RRG 9624 which was scheduled to cross the exit barrier on or before 21st January, 1984; reached the exit post on 6th February, 1984 and a penalty of Rs. 700 was imposed for the delay. Another truck No. UPF 4925 was to cross the aforesaid exit barrier before 8th June, 1984, but could not do so due to various reasons. The result was that the Sales Tax Officer at the check post imposed a penalty. Since the penalty amount could not be paid the truck and the coal loaded therein were not allowed to cross the barrier although the quality and the quantity of coal remained intact and had not been disposed of anywhere within the State of Uttar Pradesh. The petitioner had thereafter filed this writ petition.