Section 68. Inspection of goods in transit, etc

(1) If the State Government considers that with a view to preventing evasion of tax in any place or places in the State, it is necessary to so do; it may, by notification in the Official Gazette, direct that such number of checkposts shall be set up or such number of barriers shall be erected at such places as may be specified in the notification.

 (2) At every check-post or barrier set up or erected under sub-section (1), the driver or any other person in-charge of any vehicle, boat or animal shall stop the same, and keep it stationary so long as may reasonably be necessary, and allow the officer-in-charge of the check-post or barrier to examine the contents in the vehicle or boat or on the animal and inspect all records relating to the goods carried in the vehicle or boat or on the animal which are in the possession of such driver or other person in-charge who shall, if so required, give his name and address and the names and addresses of the owner of the vehicle, boat or animal as well as of the consignor and consignee of such goods; and where any of the consignors or consignee is a dealer registered under this Act or the Central Sales Tax Act, 1956 or relevant Act in any other State, the driver or any other person incharge of the vehicle, boat or animal shall also give the number and place of issue of the certificate of registration, if any, of such dealer.

 (3) The driver or other person in-charge of a vehicle, boat or animal carrying goods shall –

(a) carry with him a log book, a bill of sale or delivery note and such other documents relating to the goods carried in the vehicle or boat or on the animal and containing such particulars as may be prescribed and the driver or person in charge of a transport vehicle shall, in addition, carry a goods vehicle record and a trip sheet;

 (b) produce the same when requested to do so by the office-in-charge of the check-post or barrier;

 (c) give to the officer-in- charge of the check-post or barrier a declaration relating to particulars of the goods carried in the vehicle or boat or on the animal in such form as may be prescribed and keep one copy of declaration with him.

(4)(a) If the officer-in-charge of the check-post or barrier is of the opinion that –

(i) goods under transport are not covered by goods vehicle record, trip-sheet or log book, or

(ii) goods under transport are not in accordance with the documents prescribed under clause (a) of sub-section (3), or

(iii) a declaration relating to particulars of goods as made under clause (c) of sub-section (3) is false or 

(iv) the signature appearing in any of the documents referred to in clause (a) of subsection (3) does not match with the signature furnished by the registered dealer under section 66A,  he may, after recording the reasons, seize such goods  detain the vehicle  and give receipt thereof to the person from whose possession or control, the goods  are seized.

(b) if the driver or other person in charge of a  detain the vehicle, boat or animal carrying goods does not make a declaration or if he makes a declaration, he does not keep a copy thereof with him as required by clause (c)of sub-section (3).

(5) (a) The officer-in-charge of the check-posts or barrier may, after giving the owner, driver or person-in-charge of goods, a reasonable opportunity of being heard and after holding such further inquiry, as he deems fit, impose on him penalty, in addition to tax payable under this Act, not exceeding one and one-half times of the tax for possession of goods  so seized.

 (b) The officer-in-charge of the check-post or a barrier may release any of the goods  or documents so seized under sub-section (4) on payment of tax, interest and penalty or on furnishing such security in such form as may be prescribed.

(6) The officer-in-charge of the check post or barrier may, during inspection and verification of goods under transport including the documents and records relating thereto, direct the carrier not to part with the goods including re-transporting or re-booking until verification of goods, records and documents is done or inquiry, if any, is completed.

7) where the person from whose possession or control the goods are seized under sub-section (4) fails to establish the ownership of the goods so seized or the payment of tax, interest or penalty is not made or security is not furnished, the Commissioner may direct that the goods so seized may be sold by public auction and sale proceeds thereof shall be deposited in the Government treasury.

 Explanation.-- In this section,-

(a) “goods vehicle record” means the documents required to be carried by the dealer of a transport vehicle under the Motor Vehicle Act, 1988 or the rules made thereunder;

(b) “log book” means a register, statement or other record containing particulars of the goods under transport;

(c) “trip sheet” means a sheet or other document containing particulars relating to the trip-wise use of a transport vehicle, required to be carried by the driver under the Act referred to in clause (a);

(d) “goods under transport” means goods which have been handed over to a carrier and complete delivery thereof has not been taken from such carrier;

(e) “carrier” means any person or agency who undertakes to carry or transport goods from one place to another.