(1)(a) Every transporter shall be liable to pay tax on such goods, as the State Government may, by notification specify, carried by road in the State of Madhya Pradesh:

Provided that no tax shall be payable in respect of the goods belonging to a person other than a dealer or a builder who carries on business in or outside the State of Madhya Pradesh:

Provided further that no tax shall be payable in respect of the goods belonging to a dealer registered under section 17 or a builder enrolled under Section 9-B, carried from railway station to his godown within the State of Madhya Pradesh:

Provided also that no tax shall be payable in respect of the goods belonging to a dealer registered under Section 17 or a builder enrolled under Section 9-B, carried from one place to other place within a municipal area or within such area as may be notified.

(b) The tax shall be levied on freight at the rate specified in column (3) of Schedule II, against the corresponding entry of the goods notified under clause (a).

(c) Where no freight is charged or only token freight is charged the tax shall be levied on the normal freight prevalent on the route.

(d) Where the goods are carried by a motor vehicle owned by the owner of the goods, the tax shall be levied on the normal freight prevalent on the route.

(e) Where goods are carried by a motor vehicle from any place outside the State to any place within the State or from any place within the State to any place outside the State or from any place outside the State to any other place outside the State but through the State or from any place within the State to any other place within the State but through the intervening territory of another State, the tax shall be payable in respect of the freight relating to the distance covered within the State.

(f) the person incharge of a motor vehicle carrying the goods shall carry with him a receipt in the prescribed form.

(2) Every transporter liable to pay tax under sub-section (1), shall get himself registered in such manner as may be prescribed:

Provided that if transporter is a dealer registered under Section 17 or a builder enrolled under Section 9-B, such transporter shall not be required to register under this sub-section:

Provided further that the transporter, who carries exclusively the goods belonging to a dealer registered under Section 17 or a builder enrolled under Section 9-B, shall not be required to register under this sub-section.

(3) (a) A registered dealer or an enrolled builder who gets his goods carried by a transporter after payment to him tax under sub-section (1), shall claim or be allowed in such manner and within such period as may be prescribed, rebate of the amount of such tax.

(b) The rebate under clause (a) shall be claimed or be allowed only in respect of the tax on freight relating to the goods which are sold within the State of Madhya Pradesh or in the course of interstate trade or commerce or in the course of export out of the territory of India or to the goods consumed in the manufacture or processing of goods and the goods so manufactured or processed are sold within the State of Madhya Pradesh or in the course of inter-state trade or commerce or in the course of export out of the territory of India or to the goods consumed in the construction of a building and tax is paid under Section 9-B on the building so constructed.

(c) The rebate under clause (a) shall be claimed or be allowed only in respect of the tax on freight which is part of the sale price of the goods sold Within the State of Madhya Pradesh or in the course of inter-state trade or commerce or in the course of export out of the territory of India.

(d) No rebate shall be claimed or be allowed in respect of tax which has been deducted under sub-section (4).

(4) (a) Every consignor or consignee, who is a dealer registered under section 17 or a builder enrolled under section 9-B, of goods notified, shall deduct tax payable under sub-section (1) from the amount payable by him to the transporter for carrying the goods.

(b) On deduction of the amount under clause (a), the registered dealer or the enrolled builder shall issue a certificate of deduction of tax to the transporter in such form and manner as may be prescribed.

(c) The certificate of deduction of tax shall constitute a good and sufficient discharge of the liability of the transporter to pay tax in respect of such transaction and the amount so deducted shall be adjusted by him in such manner as may be prescribed.

(d) The registered dealer or the enrolled builder shall retain as refund the amount deducted under clause (a) which is equal to the amount of rebate notionally admissible under sub-section (3).

(e) The registered dealer or the enrolled builder shall deposit the amount deducted under clause (a) which is over and above the amount of rebate notionally admissible under sub-section (3).

(f) If a consignor or consignee fails to deduct, or after deducting fails to pay, the whole or any part of the tax as required by or under this sub-section, he shall be deemed to be a transporter liable to pay tax under sub-section (1), in default in respect of such tax.

(5) The rebate under sub-section (3) shall be adjusted towards the amount payable under sub-section (4) and the tax payable under the Act.

(6) The provisions of this Act shall mutatis mutandis apply to a transporter who is liable to pay tax under sub-section (1).

Provided that the provisions of Sections 18, 20 and 39 shall not be applicable to a transporter, who carries exclusively the goods belonging to a dealer registered under Section 17 or a builder enrolled under Section 9-B.

Explanation.- For the purpose of this Section,-

(a) "Goods" means goods specified in Schedule II;

(b) "Motor Vehicle" means a motor vehicle (other than light motor vehicle and medium motor vehicle used as transport vehicle) including trailer attached thereto within the meaning of the Motor Vehicles Act, 1988 (No. 59 of 1988);

(c) "Transporter" means the person transporting goods in or through the territory of the State of Madhya Pradesh by a motor vehicle:

(d) "municipal area" shall have the same meaning as assigned to it in the Madhya Pradesh Municipal Corporation Act, 1956 (No. 23 of 1956) and the Madhya Pradesh Municipalities Act, 1961 (No. 37 of 1961).