Wednesday, October 7, 2015

Issue and receipt of transit passes - APVAT Act, 2005

Sub : APVAT Act, 2005 – Issue and receipt of transit passes (TPs) at the Check Posts TPs not surrendered at the exit Check Posts – Procedure to be adopted in case of un-surrendered Transit Passes – Guidelines – Regarding.

Circular Date: 15-09-2015
Ref : CCT’s Ref  Enft No E3/357/201, dated 20-03-2015

The attention of all the Deputy Commissioner’s (CT) in the state is invited to the subject cited. It has come to notice that the officials manning the Integrated / Border Check Posts are not properly monitoring the un-surrendered Transit Passes and not taking timely action against the transporters who fail to surrender the Transit Pass at the Exit Check Post.
Further, it has also come to the notice that;

  1. The data entry of the Transit Passes surrendered by the driver / owner of the goods vehicle at the exit Check Post is not being done in the VATIS-GIS Module, after stamping the TP, as a proof of exit. Consequently, these vehicles are un-necessarily black listed in GIS which resulted in serious in-convenience to the transporters and dealers.
  2. While issuing Transit Pass at entry check post, the Data Entry operators are not properly feeding the data related to name & TIN of the Consignor and Consignee in VATIS-GIS. At the name of the Consignor/consignee field, entering transporter name or in the field related to consignor/consignee TIN, simply entering invalid TIN numbers like 30000000000/9999999999, etc.which practice shall  be avoided.
  3. Inspite of repeated instructions to type the full address of the transporter along with phone numbers as provided in the L.R. copy, the address column of transporter details in Transit Pass are seen with incomplete address of the transporters which causing in-convenience to the officers of entry check posts to issue notices to the transporters for un-surrendered Transit Passes and to finalize the assessments.Proper care shall be taken to enter correct and complete address of the transporters.
The objective of introducing Transit Pass system is to check clandestine off-loading of goods in the state by un-scrupulous dealers in the guise of interstate movement of goods.

Legal Position:

Section – 47 of APVAT Act, 2005 – Transit Passes:

Where a vehicle carrying goods coming from any place outside the State and bound for any other place outside the State, pass through the State, the driver or other person-in-charge of such vehicle shall obtain in the prescribed manner a transit pass from the officer-in-charge of the first check post or barrier after his entry into the state and deliver it to the officer-in-charge of the last check-post or barrier before his exit from the State, failing which it shall be presumed that the goods carried thereby have been sold within the State by the owner or person-in-charge of the vehicle and accordingly the tax shall be assessed and penalty, if any shall be levied in accordance with the provisions of the Act:

Provided that where the goods carried by such vehicle are, after their entry into the State, transported outside the State by any other vehicle or conveyance, the burden of proving that the goods have actually moved out of the State shall be on the owner or person-in-charge of the vehicle.

Rule-58 of APVAT Rules, 2005 – Transit Passes:

In order to obtain a transit pass under Section 47 the driver or the person in charge of the goods vehicle shall submit such documents and furnish such information which may be relevant or necessary along with payment of a fee of Rs.50/- in cash or by way of Demand Draft or treasury challan to the officer in charge of the check post or barrier after his entry into the State”. The amount of Rs.50/- so collected shall be remitted to the head of account of user charges.

The Officer in charge of the first check post shall after examining the documents and after making such enquiries as he deems necessary, shall make out a Transit Pass in Form 616 in triplicate and issue the original and duplicate thereof duly signed by him to the driver or person-in-charge of the vehicle after obtaining his signature at the end of the declaration provided in the said form”.

The driver or the person-in-charge of the goods vehicle shall carry the original and duplicate copies of the transit pass and shall tender the original copy to the officer-in-charge of the last check post or barrier before his exit from the State.
  • Provided that where the goods carried by such vehicle are, after their entry into the state, transported outside the state by any other Vehicle the number of that vehicle shall be recorded in the original and duplicate copies of the transit pass and certified by the officer prescribed.
The driver or the person-in-charge of the goods vehicle shall stop the vehicle and allow the officer-in-charge of the last check post or barrier to inspect the documents, transit pass and the goods in order to ensure that the goods being taken out of the State are the same goods for which transit pass had been obtained.

If on such inspection, the officer-in-charge of the last check post or barrier is satisfied that the goods being transported are the same goods both in quantity and description noted in the transit pass, he shall affix the seal of the check post on the duplicate copy of the transit pass under his signature and allow the vehicle to pass into the other State.

If on such inspection, it appears that the quantity of goods under transport is less than the quantity noted in the transit pass or the description of the goods is different form the description noted in the transit pass, the  officer-in-charge of the last check post or barrier shall presume that the goods to that extent have been sold within the State by the owner or other person-in-charge of the goods vehicle and shall accordingly assess the owner or other person in-charge of the goods vehicle as specified in  Section 21.  The said officer shall have the power to detain the vehicle so long as he may reasonably be deem it necessary.

Powers of the nature referred to in sub-rule (6) may also be exercised by an officer not below the rank of an Assistant Commercial Tax Officer.  He shall, however, inform the officer-in-charge of the first check post within seven days of such inspection, in case, he proposes to make an assessment.

The original copy of the transit pass, so received by the officer-in-charge of last check post or barrier shall be sent by him by Registered Post, to the officer-in-charge of the first check post or barrier within ten days from the date of receipt from the driver or the other person-in-charge of the goods vehicle.  Action taken under sub-rule (6) shall also be informed within the said time.

In case the original copy of the transit pass is not received back within thirty days of its issue the officer – in –charge of the first check post shall send a report to the Commercial Tax Officer prescribed who shall assess the owner of the goods vehicle as specified in section 47 of the Act

Further, the Commissioner(CT) issued Proceedings vide CCT’s Ref  E3/357/2015 dated 07-09-2015 duly authorizing the Administrative Officers of re-entry check post to assess the black listed vehicles.

In a nut-shell every transporter who obtains Transit Pass at the entry Check Post shall surrender the same at the exit Border Check Post invariably within the stipulated time failing which the prescribed authority shall assess the transporter treating him as a dealer with suitable tax and penalties in accordance with the provisions of the Act & Rules.

Keeping in view of the above mentioned provisions of APVAT Act & Rules, 2005 and also lapses observed in this regard as mentioned in the first page of this circular the following guidelines are being issued in case of issue and surrendering of Transit Passes at the entry & exit Check Post function in the state of Andhra Pradesh.

  1. At entry check post, while issuing Transit Pass the staff and officers of the Check Post are hereby instructed to type the full address of the transporter along with the phone numbers provided in the L.R. copy or from the RC Book of the Vehicle which is very useful while sending show cause notice to the Driver / Vehicle-in-charge in case of un-surrendered Transit Passes.
  2. While issuing Transit Passes at entry check post, the Data Entry Operators shall feed the data in relevant fields related to name & TIN of the consignor/consignee, Transporter details, commodity description, value of the goods, vehicle number, etc very clearly with at most care without giving any scope for ambiguity.
  3. At exit check post, the check post staff invariably shall enter the details of surrendered transit passes in to VATIS-GIS and has to affix the Seal of Check Post with Signature of the concerned authority. Even at check posts where internet facility is not provided or provided but not functional, due to technical problems, the Administrative Officer of the Check Post shall ensure that the data entry of the surrendered Transit Passes will be entered in VATIS-GIS subsequently with-in  24-Hours.   The Data Entry Operator concerned will be personally held responsiblefor any lapses or deviations from the procedure mentioned in above 3 points while entering the data related to any vehicle and suitable disciplinary action will be initiated against him/her. The Administrative Officer of the checkpostshall monitor this item of work.
  4. The vehicles which are not surrendered Transit Passes within stipulated time of 5 (Five) days will be black listed and the black listed vehicle on re-entry is required to produce the proper evidence to show that the vehicle has been exited for a given Transit Pass before the Administrative Officer of the Check Post where the vehicle is being re-entered in to the state. If the Administrative Officer is satisfied with the genuineness of the evidences produced by the vehicle-in-charge, he shall remove the vehicle from the black list. While verifying the evidences produced by the vehicle-in-charge the concerned Administrative Officer has to act with at-most care and if the evidence produced by the vehicle-in-charge satisfies the following conditions then only it shall be treated as genuine case. a) Seal/stamp and signature of the officer not below the rank of Assistant Commercial Tax Officer  of the Exit check post. b) Evidence of receipt of goods by the consignee who resides in other states duly attested by concerned territorial sales tax authority. The  officer who appended signature  as per clause (a) above, has to explain  if  there is no entry  In the VATIS-GIS,
  5. In non-genuine cases the concerned Administrative Officer at re-entry Check Post shall issue a notice for payment of Tax calling objections from the vehicle-in-charge.
  6. On receipt of the written objections from the vehicle-in-charge, the Administrative Officer at re-entry Check Post shall issue proceedings by levying appropriate Tax & Penalties in accordance with the provisions of the APVAT Act & Rules, 2005 and on collection of levied Tax &Penaltiesonly;the Administrative Officer of the re-entry Check Post shall release the vehicle by removing the same from the black list.
  7. In case of other black listed vehicles which are not re-entered with-in 15 days / 30 days from the date of black listed at any check Post, the concerned Administrative Officer of the first Check Post where the said un-surrendered Transit Pass has been issued shall send show cause notice proposing appropriate Tax / Penalty to the address of that transporter by giving reasonable opportunity and then confirm orders in accordance with the provisions of the APVAT Act & Rules, 2005.
  8. List of black listed vehicles is shown in the VATISreports. A.O.s to utilize only this report for the purpose of assessment etc., 
  9. The Administrative Officer alone is competent to remove any vehicle from black list after duly following the above prescribed procedure.
All the Deputy Commissioners are requested to follow the above guidelines scrupulously to ensure that, the persons responsible for failure to surrender the original copies of Transit Passes at the exit Check Posts are assessed to taxes / penalties without any loss of time and loss of revenue and also not to cause any inconvenience to the genuine transporters who surrendered Transit Passes at the exit Check Post or who produced proper evidence to show that the vehicle has been exited.

Sd/- J.Syamala Rao,
COMMISSIONER OF COMMERCIAL TAXES,
ANDHRA PRADESH, HYDERABAD.


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