TaxTMI 
TaxTMI 
2019 (7) TMI 1203
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....est judgment assessment made against the assessee. 2. Heard Sri Suyash Agrawal, learned counsel for the revisionist-assessee and Sri B.K. Pandey, learned counsel for the respondent-revenue. 3. Present revision has been heard on the following question of law:- "(i) Whether in absence of any statutory provision enabling the revenue to draw and rely on any presumption as to trading performed by the assessee/transporter, any tax liability could have been fixed merely because 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. ....
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....d in part. While, the issue of liability of the assessee had been decided against the assessee, the quantification on the best judgment assessment had been reduced. 6. Learned counsel for the assessee-revisionist submits that the activity of transportation of goods engaged by the assessee is governed by the provisions of Carriers Act, 1865. It nowhere obligates the assessee to maintain 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 tax....
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....having perused the record, in the first place, it would be relevant that the provisions of Section 8- A (5) and Rule 84-A of the Act may be taken note of. They read:- (8 A.) "(5) Where any dealer transports any goods liable to tax, by a vehicle, he shall furnish to the transporter or driver or any other person-incharge 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) ....
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....ed under this rule." 9. Clearly Section 8 A(5) of the Act is not with respect to completed transactions of transportation of goods. Rather 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....
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....ns on the transporter in the conduct of its business, it would 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....