(1) When a vehicle carrying goods coming from any place outside the State and bound for any other place outside the State passes through the State, the driver or other person in-charge of such vehicle (hereinafter referred to as transporter) shall, after his entry into the State, carry with him an invoice, bill or challan or any other document, completed prescribed application form of the goods in movement and challan, bilties or any other document issued by the transporter, and obtain in the prescribed form and manner, a transit pass from the check post officer of the first check post after his entry in to the state and deliver it to the check post officer of the last check post before his exit from the State, failing which it shall be presumed that the goods carried in such vehicle have been sold within the State by the transporter:

Provided that if the transporter transporting goods carries with him an electronically obtained transit pass, particulars of which including date and approximate time of entering the State of Madhya Pradesh, have been uploaded completely on the official web portal of the department before entering the State of Madhya Pradesh, alongwith the documents, he shall be deemed to have complied with the requirement of obtaining transit pass from the check post officer of the first check post after his entry into the State.

(2) The check post officer at the entry point who issues the transit pass shall intimate the information contained in the transit pass issued by him to the check post officer of the check post or barrier near the point from which the transporter declares that the goods shall be taken out of the State. If within a week, in case of transshipment 15 days, of entry into the State with receipt of the transit pass the vehicle or the goods covered by the transit pass do not report at the exit point, the check post officer of the check post / barrier at the exit point or the entry point or any officer authorised under sub-section (5) of Section 57, whoever comes to know, shall then initiate action to recover the penalty which could have been levied under the provisions of Section 57 from the transporter:

Provided that in case of trans-shipment, the Commissioner may, on an application, extend the period of fifteen days.

(3) When goods coming from any place outside the State and bound for any other place; outside the State passing through the State, are carried by road, as well as by rail and vice-versa, and trans-shipment takes place within the State, the provisions of this section shall mutatis mutandis apply to such movement of goods.

(4) The provisions of Section 57 shall mutatis mutandis apply in relation to any goods or any vehicle along with the goods covered by the transit pass.