“Transporters of goods are not strangers to the transaction of purchases and sales and totally ignorant about the consignors and consignees. If transactions have been fictitiously carried on in false names and addresses, bogus invoices with fictitious TIN numbers and forged papers by a transporter then he makes himself party to the episode of fictitious transaction with the sole purpose of evasion of tax by undisclosed non-bonafide dealers,” the Allahabad high court stated in its judgment in the case, Commissioner of Commercial Tax vs Sri Supreme Freight Carriers. In this case, a truck carrying goods from Ghaziabad was intercepted and the papers showed that the details were bogus or forged. The goods were seized but the transporter moved the tribunal arguing that it only carried the cargo and its responsibility ended with it. The tribunal accepted the contention and ordered release of the goods. The authorities moved the high court invoking the provisions of the Uttar Pradesh Vat Act.
- Civil Suit no bar to Arbitration
- No MDR charges on payments made to Govt.