Guwahati: More than 150 coal-laden trucks have been intercepted by Central Goods and Services Tax (CGST) authorities on the National Highway in Dibrugarh since the last week of September for alleged documentation lapses, with the Assam and Arunachal Pradesh governments temporarily stopping coal transportation till October 10.

The CGST drive began soon after the opening of the Namchik-Namphuk coal block at Kharsang in Arunachal Pradesh, sources said.

Of the roughly 150 trucks intercepted, 36 were penalised for operating without valid GST papers, tax invoices or bills. The operation fetched Rs 40.42 lakh in duty penalties and fines, said Kul Prakash (KP) Singh, IRS, Chief Commissioner, CCO & CCA, Guwahati GST & CX Zone.

“The department collected Rs 40.42 lakh in duty penalties and fines from these non-compliant vehicles,” Singh said.

The operation was led by Dibrugarh Commissioner Nitin Ananda, IRS, and Joint Commissioner Vinay Kumar Tammi, IRS. Both officials, however, declined to speak to the media after the operation.

Sources said several coal-carrying trucks continued to move along the National Highway without undergoing CGST checks.

“Since mining falls strictly under the jurisdiction of the state government, transporters must legally pay the required state royalty alongside the due SGST and CGST to avoid heavy levies and penalties,” Singh said.

He added that high-value goods, as well as coal and coke sourced illegally from areas like Margherita, must undergo legal procedures, customs clearance and proper tax compliance. Transport of locally produced coal, coke and areca nut without paying the requisite taxes would not be permitted despite any political pressure, he said.

Under Rule 138A of the CGST Rules, 2017, the person in charge of a conveyance carrying goods must carry the tax invoice, bill of supply or delivery challan, as the case may be. The requirement applies to coal-laden trucks when the consignment value exceeds Rs 50,000.

Coal mining traditionally picks up in the Northeast after Viswakarma Puja, generally held on September 17 every year, when trucks and machines are worshipped before the start of the coal season till the next monsoon.

Guwahati-based M/s Coal Pulz Pvt Ltd has been allotted the mining lease for the Namchik-Namphuk coal mines at Kharsang in Changlang district of Arunachal Pradesh. The Arunachal Pradesh government approved the 30-year lease agreement, which was signed in Itanagar between Coal Pulz Pvt Ltd director Naveen Singhal and the state Geology and Mining secretary.

The coal block was auctioned under the Coal Mines (Special Provisions) Act, 2015, with Coal Pulz emerging as the successful bidder. The site is expected to produce around two lakh tonnes of coal annually under the approved mine plan.

Naveen Singhal and Ratan Sharma are associated with the company running operations at the site. Open-cast mining is under way, with Ratasn Sarma and Naveen Singhal running the operation. More than 150 Assam-based operators are also functioning from the Kharsang site along with Ratan Sarma and Naveen Singhal.

Even as the CGST action has held up trucks for want of proper documents, vehicles linked to big businessmen have allegedly been allowed to move without any hindrance.

Local residents and indigenous groups in Kharsang Circle of Changlang district have raised concerns over displacement and loss of traditional livelihoods following the approval of the mining lease.

Civil society organisations and local youth have also raised concerns over recruitment norms requiring prior work experience, saying this could sideline unemployed local candidates and favour outsiders.

The two state governments have temporarily stopped coal transportation till October 10 amid the situation.