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TMI Blog2000 (5) TMI 987X X X X Extracts X X X X X X X X Extracts X X X X ..... he impugned demand of tax and penalty was quashed. That judgment was followed by the Tribunal in Case No. RN-192 (T) of 1995, filed by the respondent which was allowed quashing the demand of tax and penalty on February 20, 1996 which is assailed in C.A. No. 3296 of 2000 at S.L.P. (Civil) No. 19573 of 1996. 2.. Adverting to the facts giving rise to C.A. No. 12060 of 1996, the entry tax authority (for short, "the authority") carried out a raid on the cold storage of M/s. Pratap Company at 15/16, Botanical Garden Lane, Howrah (for short, "the cold storage") and seized its record. On examination of the record, it was noticed that 158 persons deposited dry fruits in the cold storage. The verification of the depositors showed that only 24 out of 158 were in existence. The assessing officer issued notice under section 14(3) of the Taxes on Entry of Goods into Calcutta Metropolitan Area Act, 1972 (hereinafter referred to as "the Entry Tax Act"). The respondent challenged the validity of that notice in writ petition in the High Court at Calcutta. The High Court declined to grant stay of further proceedings pursuant to the impugned notice and by an interim order directed the respondent to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and directed refund of the tax to the respondent within 12 weeks from the date of the judgment dated January 11, 1996. 4.. Mr. Tapas Ray, learned Senior Counsel for the appellants, contended that the Tribunal committed grave error by proceeding on the basis that the burden of proof of showing that the goods were brought within the entry tax area and without payment of entry tax, was on the authority and if that were to be so, the provisions of sub-sections (3) and (6) of section 14 of the Entry Tax Act would become superfluous as in no case the authority can deal with a case of goods which have already entered within the entry tax area. It is further contended that under the scheme of the Entry Tax Act when the specified goods, not produced within Calcutta metropolitan area, are found stored within the said area but without proof of payment of the entry tax or acquisition of the goods, the authority is entitled to draw a rebuttable presumption that the person in possession of the goods has brought the goods within the area without payment of tax. 5.. Mr. Gopal Chandra Chakravarty, learned Senior Counsel for the respondent, argued that any person who possesses the specific goods c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a- (a) as personal luggage by a passenger and the value or the number or quantity thereof does not exceed the prescribed amount of limit, as the case may be, or (b) in such circumstances and subject to such conditions and restrictions as may be prescribed." 7.. A perusal of this provision shows that: (i) the tax is on the entry of every specified goods into Calcutta metropolitan area; (ii) the goods must enter from any place outside the area; (iii) the entry of the goods may be for consumption, use or sale; (iv) the Government may notify the rate of tax from time to time but it should not exceed the rate specified in column 3 of the Schedule; (v) personal luggage by a passenger, not exceeding the prescribed amount of limit with regard to its value, number or quantity, as the case may be, is exempt from the tax, and (vi) the State Government is empowered to specify the circumstances, conditions and restrictions subject to which the goods brought into the Calcutta metropolitan area cannot be taxed. 8.. Section 10 of the Entry Tax Act says that the tax levied under the Act shall be payable by the dealer in relation to the specified goods. The term "dealer" is defined ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d authority to assess the tax leviable on the entry of such goods into Calcutta metropolitan area, where a declaration has been made under section 13 of the Entry Tax Act by a dealer, after making such verification of the specified goods as he may consider necessary before assessing the tax on the goods. Sub-section (2) takes care of the situation where the dealer has failed or omitted to make the declaration as required by section 13 of the Entry Tax Act. It authorises the prescribed authority to assess tax on such goods after their inspection and examination and impose penalty, in the prescribed manner, not exceeding twice the amount of tax assessed by it. Sub-sections (3) and (6) of section 14 which have been the subject-matter of debate may be extracted here: "14. (1) and (2)................. (3) Where any specified goods have been brought into the Calcutta metropolitan area without the payment of any tax leviable thereon under this Act, the prescribed authority shall assess the tax leviable under this Act on such goods and it may also impose on the dealer, in the prescribed manner, a penalty, not exceeding ten times the tax assessed by it: Provided that such assessment sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bed authority to require any dealer to produce before it any accounts, register or document for examination and to furnish any information relating to the stock of goods or purchases, sales or deliveries of goods by the dealer or relating to any other matter, as may be deemed necessary, for the purpose of section 14 of the Entry Tax Act. The prescribed authority is also empowered to require any person who has in his possession, custody or control any specified goods or through whom the specified goods are suspected by the prescribed authority to have passed, to produce before it any register, accounts or document for examination with a view to ascertaining whether any tax leviable under this Act is being or has been assessed or duly paid. 14.. It may be noticed here that the liability to pay the tax under sub section (1) and the tax and penalty under sub-sections (2) and (3) is on the dealer. It is only in a case falling under clause (b) of sub-section (6) of section 14, that a person other than a dealer is dealt with and a duty is cast on him to produce documents, accounts, register, etc., when he is required to do so by the prescribed authority. The dealer is the person r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... found in possession of a person and when he, on being required to produce before the authority any accounts, register or document under sub-section (6) of section 14, has failed to do so, a presumption arises that the specified goods have been brought by him into the Calcutta metropolitan area without payment of tax. We are afraid, we cannot accede to this contention. A presumption is a rule of law which requires the court to draw a given conclusion on proof of existence of certain facts and leaves it to the party disputing the conclusion to rebut the same. Presumptions may be of fact or of law. A presumption is an inference sanctioned by law which does not logically or necessarily follow from the proved facts. For raising a presumption, as submitted by Mr. Chakravarty, there must be a specific provision in the Entry Tax Act. No provision in the said Act is brought to our notice which may enable the authority to raise the presumption that a possessor of the specified goods, who fails to produce before the authority his accounts, register or document on being required to do so, has imported the goods into the Calcutta metropolitan area without payment of tax. On the facts and circum ..... X X X X Extracts X X X X X X X X Extracts X X X X
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