9911796707
TMI Blog2011 (8) TMI 1048X X X X Extracts X X X X X X X X Extracts X X X X ..... el for the petitioner and Government Pleader for the respondent. 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 manuf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and address of the SSI unit. This notification shall come into force on the 1st day of January 2000. The claim made by the petitioner is that even though the rate of tax on PVC pipes under the relevant entry of the First Schedule to the KGST Act is 12 per cent, the petitioner is entitled to concessional rate at eight per cent as their purchase is from SSI unit. However, the Government Pleader submitted that what is required is not purchase from SSI unit but such SSI unit should issue annexure IV form prescribed under the very same notification which clearly states that concessional rate is available only for purchase made during the period the SSI unit was enjoying sales tax exemption under SRO 1729/93. What we notice is that the condit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not considered by any of the authorities and the petitioner should be given an opportunity to obtain and produce the same, we do not think there is any scope for it because the very fact that SSI unit has obtained form No. 25D from the petitioner proves beyond doubt that but for the declaration obtained and produced by them, they would have been liable to pay tax on the products sold to the petitioner, no matter the petitioner happens to be liable under section 5(2) by virtue of the sale by them under brand name. In other words, the declaration 25D provided is only a mechanism to ensure assessment, levy of tax on sale by the brand name holder which is declared as deemed first sale under the provision so that the previous seller is not lia ..... X X X X Extracts X X X X X X X X Extracts X X X X
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