65: Certain Presumptions in Affixing Tax Liability:

(1) Where any goods relating to business are-

(a) traced to a dealer and are found in a building or place but the dealer has not accounted for such goods in his books of account; or

(b) traced to a dealer and are found in a vehicle, whether belonging to the dealer or not, such goods are not accompanied with the documents prescribed under any provision of this Act.; or

(c) found in the custody of any person who claims to carry on any profession other than business but fails to prove that such goods belong to some other person or dealer,

it shall be presumed that such goods have been imported or purchased within the State by such dealer or person with a view to evade payment of tax on sale of such goods or if the goods found are for use in manufacture, the tax on the sale of goods to be manufactured by using such goods.

(2) Where at a check post or any other place inside the State it is found that any taxable goods for the purpose of business, are being imported without a form of declaration prescribed under section 48, unless otherwise proved after furnishing proper and sufficient evidence, it shall be presumed that-

(a) such goods are being imported with a view to evade payment of tax under this Act; and

(b) such goods are being imported with a view to evade payment of tax on sales of such goods under this Act:

Provided that if goods are meant for use in manufacture of any goods, it shall be presumed that goods are being imported with a view to evade payment of tax on sale of goods to be manufactured by using such goods.

(3) Where any books or accounts or documents are found in any place or building or vehicle, unless the person in charge of such place or building or vehicle, after furnishing proper and sufficient evidence, proves that the same belong to some other person or dealer, such books, accounts or documents shall be deemed to belong to such person, and such person shall be deemed to be a dealer in respect of such transactions relating to business of purchase and sale of goods, as may be found in such books, accounts or documents.

(4) Where any transactions of sale and/ or purchase of any goods relating to a dealer are found recorded in any books or accounts or documents of any other dealer and if such transactions are not found recorded in the books or accounts or documents maintained by the former dealer in the ordinary course of business, it shall be presumed that the transaction related to such former dealer and that such goods have been imported or purchased within the State with a view to evade payment of tax on sale of such goods or if the goods recorded in such books, accounts or documents are for use in manufacture, the tax on sale of goods to be manufactured by using such goods.

(5) Where in respect of purchase or sale of any goods within the State, the challan or transport invoice referred to in sub-section (10) of section 59 is required to be issued or obtained or to accompany the goods during transit and if such provisions have not been complied with or the goods in whole or part are not covered by such documents, it shall be presumed that such goods have been sold, or as the case may be, purchased with a view to evade payment of tax on purchase or sale of such goods or, if the goods are for use in the manufacture, the tax on the sale of goods to be manufactured by using such goods.

(6) Where a dealer obtains any Sale invoice from a registered dealer without making purchase of goods shown in such Sale invoice, it shall be presumed that the dealer obtaining such documents has purchased goods shown in such document from other person with a view to evade payment of tax on purchase of such goods in the circumstances in which tax can not be levied on the person selling such goods and tax shall be payable under the provisions of this Act on such purchases by the dealer purchasing the goods.

(7) Where the Assessing Authority is satisfied that a "scheme" has been entered into or carried out such that a person, in connection with the scheme, has obtained the tax benefit resulting in-

(a) a reduction in the liability of any person to pay tax ; or

(b) an increase in the entitlement of a person to an input tax credit or refund; or

(c) any other avoidance or postponement of liability for the payment of tax,

it shall be presumed that such person or persons who carried out or entered into the scheme did so for the sole and dominant purpose to enable such person to obtain the tax benefit, and the assessing authority may determine the liability of such person who has obtained the benefit as if the scheme had not been entered into or carried out. Explanation: The "scheme" includes any agreement, arrangement, promise, or undertaking whether express or implied and whether or not enforceable, or intended to be enforceable by legal proceedings, and any plan, proposal, course of action, or course of conduct.