Instances of many goods vehicles carrying taxable goods from other states on the
strength of Transit Pass issued by the entry check posts in Assam and going to other
North Eastern states through the state of Assam without carrying statutory documents
of the importing states has come to the notice of the undersigned. Failure and inaction
of the tax officials posted in the entry check posts in Assam to detain vehicles
not supported by statutory documents of other states and insist on production of
such documents in conformity with provision of Rule 41(9)(iv)(a) of the AVAT Rules,
2005 has led to evasion of tax not only in the destination states where the goods
are supposed to be consigned but also in the state of Assam where the consignment
of goods are sometimes actually fraudulently delivered instead of the destination
states. As the goods vehicles pass through the state of Assam, production of statutory
documents of other states by the transporters is of paramount importance as they
prove genuineness of goods vehicle actually moving to other states. Such step will
also benefit other neighbouring states in terms of better tax compliance by the
dealers of those states. Besides, there is also every chance or possibility that
in absence of statutory forms of other states, goods shown to have been consigned
to those states shall actually be delivered or sold in the state of Assam resulting
in evasion of taxes. On some occasions, transporters have produced statutory forms
of other states only after their vehicles were intercepted that did not carry statutory
forms as required under the provision of Rule 41(9) (iv) (a) of the AVAT Rules,
2005. Sometimes blank forms issued by the taxing authority of other states are submitted
by them only after interception of vehicles. In view of above background and in
order to streamline movement of goods vehicles against transit passes, all the tax
officials posted at the entry/exit Check Post, deemed Check Posts are hereby strictly
directed to follow the instructions given below.:-
- They will not issue any transit pass unless consignments are supported by statutory
forms of the consignee states in the region. A list of statutory forms of different
states marked Annexure-1 is enclosed herewith for ready reference and guidance of
the tax officials.
- Tax officials posted in the exit check posts/deemed exit check posts shall endorse
the transit pass only after physical appearance of the vehicles and verification
of the documents.
- They will also physically examine the contents of the vehicles in a routine manner
from time to time and whenever discrepancy is detected tax, penalty shall be realized
from the transporters etc. after allowing opportunity of being heard.
- They shall retain hard copy of the transit pass and all the documents specified
in Rule 41(9)(iv)(a)(b) of the AVAT Rules, 2005.
- Since Taxing Authority of all the North Eastern States barring Arunachal Pradesh
has provided online facility to the dealers/transporters to generate e-way-bill
or declaration of taxable goods, there cannot be any reason for them not to provide/declare
details of statutory forms when the goods-laden vehicles arrive at the entry check
- Transporters shall invariably provide details of statutory forms of other states
such as form number, serial/series number, consignor, consignee, commodity etc.
while making online declaration and any blank form submitted by them containing
the name of only the consignee and not other details shall be rejected. Statutory
Form for non-taxable goods shall however be not required, but importers of such
goods shall have to provide copies of registration certificate.
- In case of failure to produce or provide details of such statutory documents etc.
of importing state by the owner or the person in-charge of a goods vehicle, the
vehicle shall be detained at the check post till the time statutory forms of consignee
states which are generated online are produced.
- If the driver or the person-in-charge of the vehicle does not give correct and complete
documents, officer-in-charge of the entry check post shall realize security equivalent
to the amount of tax in the form of demand draft, call deposit or guarantee before
issuing the transit pass as per provision of section 76(4) of the AVAT Act, 2005.
Such amount of security shall be released to the person on submission of the transit
pass with the endorsement of the officer-in-charge of the exit/deemed exit check
In respect of goods vehicles moving to the state of Arunachal Pradesh against transit
pass, a transporter shall have to produce copies of registration certificate of
the importing dealer of Arunachal Pradesh along with documents specified in Rule
41(9) at both the entry and exit check posts of Assam excepting a statutory form
as there is no provision for issuance of such form by the Taxing authority of Arunachal
Pradesh. The matter shall be taken up with the Commissioner of Taxes, Arunachal
Pradesh shortly. It may also be noted that DG forms issued earlier by the taxing
authority of Arunachal Pradesh has been declared obsolete.