9911796707
TMI Blog2006 (2) TMI 612X X X X Extracts X X X X X X X X Extracts X X X X ..... sophisticated medical diagnostic imaging equipment required by various hospitals and medical practitioners. The goods manufactured by the respondent are considered by the lower authorities as machinery which is one of the goods liable for entry tax under the provisions of the Karnataka Tax on Entry of Goods into Local Areas for Consumption, Use or Sale Therein Act, 1979 (for short, hereinafter referred to as the Act ). The respondent's business premises is near Whitefield which is not a local area during the assessment year under appeal. On the ground that, at the instance of the respondent, entry of goods have been caused into the local area, where customers are located and where the respondent-company is required to install such equi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sit insurance but that is on behalf of the buyer for which amounts are recovered in the bills, it cannot be held that the assessee is liable to pay entry tax having brought the said goods into the local area. Accordingly, the appeal was allowed. Levy of entry tax was set aside. Aggrieved by the same, the State has preferred this revision petition on the ground that the Tribunal has decided erroneously on question of law under section 3(2) of the Act. We have heard the learned counsel for the parties. Section 3 is a charging section. Sub-section (1) of section 3 provides for levy of tax on entry of goods specified in the First Schedule at such rates not exceeding five per cent of the value of goods as may be specified in the notificati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not a dealer, but in practice, it is the carrier who actually causes entry of the goods into the local area. It may be at the instance of the seller or purchaser, both of whom are dealers under the Act. Therefore, it is made clear that if the entry of the goods to the local area is not caused at the instance of the manufacturer or seller, and the goods are taken delivery on its entry into a local area or brought into a local area by a person other than a dealer, the dealer who takes delivery of the goods from such person, by a legal fiction, is deemed to have brought or caused to have brought the goods into the local area and liable to pay entry tax. Therefore, the test is not where the sale took place and title to the goods passed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al on record and the express stipulation contained in the agreement between the parties. From the terms of the contract, it is not possible to take the view that the entry of the goods was caused by the purchasers and not by the assessee. In that view of the matter the finding recorded by the Appellate Tribunal is liable to be set aside. The orders passed by the assessing authority as well as the first appellate authority require to be restored. For the aforesaid reasons we pass the following: ORDER:- (i) C. R. P. is allowed. (ii) The impugned order passed by the Appellate Tribunal is set aside. (iii) The order passed by the assessing authority, which is confirmed by the first appellate authority, is restored. (iv) No or ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
