TaxTMI 
TaxTMI 
2015 (1) TMI 945
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....n 15 and hence would not be obliged to obtain registration under Section 15 of the Act. The petitioner does not however, seek to resile from its commitment under Section 52, wherein inter alia, a transporting agency has to submit returns and information as prescribed under Rule 11 of all goods cleared forwarded or transported or shipped by it. It does not also seek to be exempted from the obligation to produce before the assessing authority concerned, its books of account or other documents, which the assessing authority may call for, for verification of the correctness of the returns submitted. 3. The learned Government Pleader, however, would contend that the transporting agency would come within the definition of "dealer". The learned Government Pleader would further place reliance on CTO v. Swastik Roadways [2004] 12 KTR 219 (SC) and A.B.C. (India) Ltd. v. State of Assam [2005] 6 SCC 424. 4. Both the learned counsel would place reliance on Tripura Goods Transport Association v. Commissioner of Taxes [1999] 2 SCC 253. The learned counsel for the petitioner would further rely on Excel Assay & Hallmarking Centre [2013] 21 KTR 468 (Ker) wherein a learned Single Judge consider....
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....t, 1963, (15 of 1963) immediately before the date of commencement of this Act whose total turnover under the said Act for the year preceding such date was not less than the limit specified under sub-section (1); (iii) every dealer registered under sub-section (3) of Section 7 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956); (iv) every dealer who in the course of his business obtains or brings goods from outside the State or effect export of goods out of the territory of India; (v) every dealer in bullion or specie or in jewellery of gold, silver or platinum group of metals; (vi) every dealer residing outside the State, but carrying on business in the State; (vii) every agent of a non-resident dealer; (viii) every commission agent, broker, delcredere agent, auctioneer or any other mercantile agent, by whatever name called, who carries on the business of buying, selling, supplying or distributing goods on behalf of any principal; (ix) any contractor and (x) any State Government, Central Government, or Government of any Union Territory or any department thereof or any local authority/autonomous body, shall get himself registered under this Act, irre....
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....ties prescribed under the Act and Rules. The transporting agencies, so registered, were obliged to maintain accounts, according to the rules for carrying on the transportation business, including making declarations as prescribed. The challenge was based on the ground that the appellants were transporters and not dealers within the meaning of the definition under the Act. 8. The transporting agencies relied on a decision of the Hon'ble Supreme Court in State of Haryana v. Santlal [1993] 4 SCC 380 wherein the challenge was to a provision requiring; every "clearing or forwarding agent, dalal or any other person" transporting goods, who handles documents of title to goods, for or on behalf of any dealer, to furnish particulars and information with respect to the transaction of goods and to obtain licence from the assessing authority; with the threat of penalty on contravention of the said provision. The Hon'ble Supreme Court, in that case, found that, if the "clearing or forwarding agent or dalal or transporting agent", is indeed reasonably and proximately connected with the sale; the provision for obtaining licence as also furnishing of information would be legitimate. How....
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....d provisions clearly included the provision to obtain a certificate of registration under Section 38-B which is extracted hereunder:- "38B:- For carrying out the purposes of Section 38 every transporter, carrier or transporting agent operating its transport business relating to taxable goods in Tripura shall be required to obtain a Certificate of payment of such fees as may be prescribed." The mandate of registration was upheld on the premise that this too merely aided the authorities in checking the evasion of tax and finding that registration makes it feasible for the authorities to trace out the defaulting dealers through the transporters. The aforesaid decision, was followed in the two latter decisions relied on by the learned Government Pleader. 12. Swastik Roadways case (supra) was again a challenge against the prescription of maintenance of accounts, by clearing and forwarding agents and the penalty prescribed for failure to furnish the information on the transaction of dealers. The challenge was again based on Santlal's case (supra), on the ground that the clearing and forwarding agents have no ....
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....ature to further the purpose of taxation enactments and to ensure due payment of tax and check evasion thereon. There can be no quarrel that if such provisions are available under a statute, the same have to be upheld on the principles of legislative competence as declared by the aforesaid binding precedents. The reliance placed by the learned Government Pleader, to that extent is only proper. But, however, as was noticed earlier, it is not the constitutionality of such provision that arise in the instant case. It is the lack of a provision obliging the transporters, to take registration, that has been urged herein. 15. Section 38 B of the Tripura Sales Tax Act as extracted herein above, would indicate that the said legislation, specifically provided for registration by the transporting agency. The Kerala Value Added Tax Act, 2003, however, does not mandate such registration. It definitely mandates, by Section 52, the maintenance of proper accounts, the filing of returns and production of the accounts on demand, made by the Assessing Officer. While provision for obtaining registration under the taxation enactment was held to be ancillary or incidental power of the State legislat....