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TMI Blog1994 (10) TMI 272X X X X Extracts X X X X X X X X Extracts X X X X ..... registered dealer in respect of whom such goods are local goods when purchased by another dealer of another local area?" 2.. The only facts necessary for answering the question, referred above, to us are as under: This is a common reference in relation to three assessees. They purchased pulses from registered dealers from another local area but denied their liability to pay entry tax under the provisions of the M.P. Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976 (for short, "the Entry Tax Act"). 3.. The contention advanced before the Board of Revenue was that the pulses were purchased from dealers outside the local area of Gwalior and that the same dealers having failed to make the declaration as contemplated by subsect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax is payable by purchasing dealer, if such tax has already been paid by the registered selling dealer. The expressions "local goods" are explained in the provisions contained in section 7 of the Entry Tax Act which are also relevant and are quoted hereunder: "7. Registered dealers to issue bill, etc., stating that goods sold are local goods.-(1) Every registered dealer who, in the course of his business, manufactures, produces or grows any goods specified in Schedule II in a local area in such manner that the goods become local goods in relation to that local area, shall, on the sale of such local goods to any other registered dealer, issue to him a bill, invoice or cash memo specifically stating in such manner as may be prescribed, tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the purchasing dealer in effecting the sale of goods. Sub-section (5) of section 7 imposes the penalty on such selling dealer who fails to make the relevant statement in the bill, invoice or cash memo, as referred to in subsection (1) and a presumption is raised against him that an attempt was made for evasion of payment of entry tax. Examining the scheme of the Act and particularly, the provisions contained in sections 3 and 7 of the Act, we have no hesitation in holding that although for want of making due declaration or statement in the bill, invoice or cash memo a selling dealer may be subjected to penalty under sub-section (5) but the provisions of the Act do not absolve the purchasing dealer of his liability for payment of entry tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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