2011 (8) TMI 1048

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..... dent. Admittedly the appellant got PVC pipes manufactured in their brand name Sakthiman from a SSI unit which claimed exemption from sales tax based on the declaration in form No. 25D issued by the petitioner stating that petitioner is paying tax on sale of the products in the brand name which is the point of levy by virtue of operation of section 5(2) of the Act. Section 5(2) itself was introduced to the statute to levy tax on wholesale market price of the goods when sold by the brand name holder. The petitioner also concedes their liability under section 5(2) as deemed first seller of goods being brand name holders selling goods after purchase from SSI units who manufactured the goods in the brand name of the petitioner. However, the .....

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..... ....and the total quantum of exemption sanctioned has not been exhausted. Description of goods sold SI. No. No. and date of sale bill issued by the seller Description of goods Quantity Value (1) (2) (3) (4) (5) Place: Name and status of the person signing the certificate Date: Name and address of the SSI unit. .....

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..... SI unit to the brand name holder also, we are unable to accept this contention because concessional rate is available for the brand name holder purchasing and selling goods from SSI units only if the manufacturing SSI unit was enjoying sales tax exemption under SRO No. 1729/93. In other words, when the SSI unit ceased to be entitled to sales tax exemption, the concessional rate will not be available under the above notification to the brand name holder who purchases and sells the goods under brand name making them liable for payment of tax under section 5(2) of the Act. Even though counsel for the petitioner contended necessity of annexure IV form declaration in terms of the above provision of the notification was not considered by any o .....

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