18. Checking of goods in transit.

(1) The owner or person incharge of the goods and, when the goods are carried by a goods carrier, the driver or any other person in-charge of the goods carrier, shall carry with him in respect of the goods carrier

(i)     record of ownership of the goods carrier;

trip sheet or log-book, containing such particulars, as

(ii)   may be prescribed;

and in respect of the goods being carried?

(i)                 goods receipt;

(ii)               delivery-note or cash-memorandum or bill of sale/purchase, as the case may be, containing such particulars, as may be prescribed

(iii)              declaration duly filed and signed by the consignor or consignee obtained from such authority on payment of such fee and containing such particulars, as may be prescribed, and produce the same before any officer of the department not below the rank of an Assistant Excise and Taxation Officer or such other officer, as the State Government may, by notification, appoint, checking the goods carrier at any place.

(2) When required by any officer referred to in sub-section (1), the owner or person incharge of the goods or driver or any other person incharge of the goods carrier shall stop the goods carrier and keep it stationary, as long as may reasonably be necessary, and allow the officer as aforesaid to examine the goods carried by him or in the goods carrier, by breaking open the package or packages, if necessary, and inspect all records (relating to the goods) which are in the possession of such owner or person incharge of the goods or of the driver or other person incharge of the goods carrier, who shall also furnish such other information, as may be required by the aforesaid officer, who, if he considers necessary, may also search the goods carrier and the driver or other person incharge of the goods carrier or of the goods and make enquiries from them and take down their statement.

(3) If the officer as mentioned in sub-section (2) has reasons to suspect that the goods under transport are not covered by proper and genuine documents as mentioned in sub-section (1) or that the person transporting the goods is attempting to evade the tax payable under this Act, he may, for reasons to be recorded in writing, and after hearing the said person, order the unloading and detention of the goods and shall allow the same to be transported only on the owner of the goods, or his representative of the driver or other person incharge of the goods carrier on behalf of the owner of the goods furnishing to his satisfaction a security, in the prescribed form and manner, for an amount not less than ten per centum and not more than twenty per centum of the value of goods:

Provided that such officer may, if he deems fit, having regard to the nature of the carrier or the goods and other relevant matters, allow such goods to be transported, on the owner of the goods or his representative or the driver or other person incharge of the goods carrier, executing, in a prescribed manner, a bond with or without sureties for securing the amount due as security:

Provided further that such officer may, if he deems fit, having regard to the nature of the goods and the goods carrier, and other relevant matters, hand over the goods on superdari to any person for safe custody, on payment of such charges for the custody, as he may consider reasonable, which shall be recovered from the owner of the goods. The person to whom the goods are handed over on superdari shall not hand over the same to anybody except with the written permission of such officer otherwise the value of the goods shall be recoverable as arrears of land revenue from him:

Provided further that where any goods are detained, a report shall be made within twenty-four hours of the detention of the goods by the officer detaining the goods to the Deputy Excise and Taxation Commissioner incharge of the district where the goods are detained seeking his permission for the detention of the goods for a period exceeding twenty-four hours, as and when so required, and if no intimation to the contrary is received from the latter, the former may assume that his proposal has been accepted.

(4) The officer detaining the goods shall record the statement, if any, given by the owner of the goods or his representative or the driver or other person incharge of the goods carrier and shall require him to produce proper and genuine documents as referred to in sub-section (1), If, after enquiry, such officer finds that there has been an attempt to evade the tax payable under this Act, he shall, by 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 incharge of the goods or the driver or person incharge of the goods carrier, in which the goods are being carried, on the person in-charge of the goods or the goods carrier or the driver a penalty of not less than ten percent and not more than twenty percent of the value of the goods, and in case he finds otherwise, he shall order the release of the goods:

Provided that no penalty shall be imposed unless the owner of the goods or his representative or person incharge of the goods or the goods carrier or the driver has been given a reasonable opportunity of being heard

 (5) If the owner of the goods or his representative or the driver or other person incharge of the goods carrier does not furnish security or execute the bond as required under sub-section (3) within ten days from the date of detaining the goods or goods carrier, the officer referred to in that sub-section may order further detention of the goods, and in the event of the owner of the goods not paying the penalty imposed under sub-section (4) within twenty days from the date of the order imposing the penalty, the goods detained shall be liable to be sold for the realisation of the penalty in the manner provided in sub-section (7).

(6) When any goods are detained under sub-section (3), the officer 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 incharge of the goods carrier, 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 the two witnesses.

(7) The goods detained under sub-section (6) shall be sold, by the officer who imposed the penalty, by public auction in the manner prescribed, and the sale proceeds shall be deposited in the Government treasury.

(8) If the goods detained are of a perishable nature, or subject to speedy and natural decay, or when the expenses of keeping them in custody are likely to exceed their value, the officer empowered under sub-section (1), as the case may be, shall immediately sell such goods or otherwise dispose them of and deposit the sale proceeds of such goods, or the amount obtained by the disposal of such goods otherwise than by way of sale, in the Government treasury.

(9) If the order of imposition of penalty under sub-section (4) or of detention of goods under sub-section (3) is in the mean time set aside or modified in appeal or other proceedings, the officer detaining the goods consequential orders for giving effect to the order in such appeal or other proceedings, as the case may be.

(10) Where the detained goods are sold or otherwise disposed of under this section, the owner thereof shall be liable to pay the expenses and other incidental charges incurred in detaining and disposing the same.

(11) If the sale proceeds of any goods sold or the amount obtained on the disposal of any goods otherwise than by way of sale under the provisions hereinbefore contained exceeds the penalty imposed in respect of such goods, such excess amount after deducting the expenses, and incidental charges referred to in sub-section (10) shall be returned by the officer who conducted the sale or otherwise disposed of the goods, to the owner of the goods.

(12) At every station of transport of goods, bus stand or any other station or place of loading or unloading of goods, other than a post office, when so required by the Commissioner or any officer not below the rank of Assistant Excise and Taxation Officer, the owner or person incharge of the goods or the driver or other person incharge of the goods carrier shall produce for examination transport receipt and all other documents and account books concerning the goods carried, transported, loaded, unloaded, consigned or received for transport, to be maintained by him in the prescribed manner and the Commissioner or the person so appointed shall have, for the purpose of examining that such transport receipts and other documents and account books are in respect of the goods carried, transported, loaded, unloaded or consigned or received for transport, the power to break open any package or packages of such goods. If the Commissioner or other officer as mentioned above is satisfied that it is necessary for the purposes of investigation or verification, he may seize the transport receipts, documents or account books so produced for examination or found lying at such a station of transport of goods, bus stand or any other station or place of loading or unloading of goods. The officer seizing the transport receipts, documents or account books shall forthwith grant a receipt for the same and shall return to the person from whose custody these were seized after examination or completion of investigation or verification within a period of sixty days. Where the transport receipts, documents or account books so seized are required to be retained beyond the aforesaid period of sixty days, the authority so retaining them shall record the reasons, in writing and shall obtain the approval of the Commissioner for so doing.

(13) Except in accordance with such conditions, as may be prescribed, with a view to ensuring that there is no evasion of tax imposed by or under this Act

(a) no driver or person incharge of a goods carrier or any person incharge of a place of loading or unloading of goods, other than a post office, shall accept any consignment of goods for transport or give delivery of any consignment of such goods, other than personal luggage or goods for personal consumption;

(b) no importer or any person including a carrier of goods acting on behalf of an importer shall, take delivery of, or transport from any station of transport of goods, bus stand or any other station or place of loading or unloading of goods, airport or any other place, whether of similar nature or otherwise other than a post office, any consignment of goods referred to above.  

(14) Any person transporting goods through a pipeline or cable or a similar means of conveyance shall install such equipment and measuring instruments at the receiving end as would precisely measure the quantity of goods received and shall keep such equipment and instruments in working order and open to inspection and checking at all times by any officer not below the rank of Assistant Excise and Taxation Officer.