Report No. 61

Chapter 7

Establishment of Check-Posts for Preventing Evasion and Ensuring Better Collection of Taxes on The Sale of Goods

7.1. Introductory.-

One of the questions which we have been asked to consider is the establishment of check-posts for preventing evasion and ensuring better collection of taxes on the sale of goods. We assume that 'check-posts', in this context, would be in the nature of barriers put up to ensure that in inter-State movement, goods do not escape the tax lawfully leviable. It appears that some obscurity exists as to legislative competence to provide for such check-posts. Because of this obscurity, our discussion will concentrate on legislative competence.