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TMI Blog2019 (7) TMI 1203X X X X Extracts X X X X X X X X Extracts X X X X ..... rovides that the dealer would handover to the transporter complete documents/prescribed forms and the transporter or a person-in-charge of the vehicle (who would be carrying such goods during transportation), shall on demand, made under Section 13 (2) of the Act, produce such documents etc. for inspection. It is in the event of failure to discharge such obligations that an adverse presumption has been provided to be drawn on presumptive basis. It is true that the presumption would remain rebuttable. In absence of any material or evidence being brought on record to establish that though the assessee was a transporter but had engaged in trading in goods, again it could never be said that the assessee was liable to pay tax. It was for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cause the assessee did not furnish the details of the consignor and the consignee of completed transactions? 4. During the assessment year in question, the assessee had engaged in the activity of transportation of goods. Thus, it was a carrier under the Carriers Act 1865. A survey was conducted at the business premises of the assessee at T.P. Nagar, Meerut on 19.3.1999. During that survey, bilty books found present were examined. Those disclosed transportation of large quantities of empty LPG cylinders. However, the names and other details of the consignor and the consignee involved in such transactions, were not fully recorded. At the same time, it may be noted here itself, not a single transaction of tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tain any system of accounts wherein, full details of the consignor and the consignee may be maintained. Insofar as, the provisions of the U.P. Trade Tax Act, 1948 (hereinafter referred to as 'the Act') is concerned, the same also does not require a transporter to maintain accounts from which the assessee may have been in a position to disclose to the taxing authority the full name and particulars of the consignor and the consignee. In such circumstances, it has been submitted that there is no statutory presumption or rule of evidence on which the revenue authorities may have relied to reach an adverse inference of the assessee having engaged in the activity of trading in empty LPG cylinders. Also, it has been submitted, there is com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge of the vehicle, a duly filled goods transport memo in the prescribed form and the transporter or the driver or the person-incharge of the vehicle carrying such goods shall, on demand by an officer authorized under Sub-Section (2) of Section 13, produce such memo for his inspection. If the transporter or the driver or the person-incharge of the vehicle fails to produce such memo on such demand it shall be presumed:- (a) The dealer has not accounted for such goods with a view to evade payment of tax; or (b) If the dealer of such goods is not ascertainable, the transporter, and if the transporter is also not ascertainable the owner or the person-incharge of the vehicle, as the case may be, is transporting s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is a provision that governs the conduct of the parties while the goods are in course of transportation. It is in that regard that the Act provides that the dealer would handover to the transporter complete documents/prescribed forms and the transporter or a person-in-charge of the vehicle (who would be carrying such goods during transportation), shall on demand, made under Section 13 (2) of the Act, produce such documents etc. for inspection. It is in the event of failure to discharge such obligations that an adverse presumption has been provided to be drawn on presumptive basis. 10. It is true that the presumption would remain rebuttable. However, that question does not call for attention in the presen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld not be enough to reach a conclusion that in the event of breach of the same, an irrebuttable or rebuttable presumption may arise as to occurrence of a taxing event taking place at the hands of the transporter. 14. By very nature of things, the transporter is not a person who is engaged in trading in goods. He is merely a bailee of the goods. For a tax liability to arise at his hands with respect to the goods under his bailment, a statutory provision would have to pre-exist or else, no liability may be fixed upon him. No such provision is found existing with respect to completed transactions. 15. As to the facts of the case, in absence of any material or evidence being brought on record ..... X X X X Extracts X X X X X X X X Extracts X X X X
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