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TMI Blog2019 (8) TMI 171X X X X Extracts X X X X X X X X Extracts X X X X ..... essee and M/s Jyoti Automobiles as otherwise there could have been no circumstances in which Form III-A would have been issued by M/s Jyoti Automobiles. Clearly those forms were issued by M/s Jyoti Automobiles and accepted by the assessee only to avoid the tax liability which would have otherwise arisen against the assessee. Inasmuch as, in the present case, it is clear that there was collusion between the two dealers, the Tribunal has not erred in rejecting the appeal filed by the assessee. Revision dismissed. - Sales/Trade Tax Revision No. - 1590 of 2006 - - - Dated:- 31-7-2019 - Saumitra Dayal Singh, J. For the Revisionist : Piyush Agrawal,Bharat Ji Agrawal For the Opposite Party : S.C. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicant-assessee and Sri A.C. Tripathi, learned Standing Counsel for the revenue. 4. In brief, it is the submission of the learned counsel for the assessee is that the assessee is a registered dealer, engaged in trading in two wheelers at Badaun. It had purchased the two wheelers namely, scooters from the manufacturer and sold the same to another registered dealer M/s Jyoti Automobiles at Meerut. The two wheelers were taxable at the point of sale to consumer. Since, M/s Jyoti Automobiles at Meerut represented to the assessee that it would sell the two wheelers in the same form and condition and promised to issue statutory Form III-A, acting on that representation, the assessee had made the sale in favour of M/s Jyoti Automo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act) to the customers. Therefore, the sale claimed by the assessee was only a device to avoid tax liability. 6. Having heard learned counsel for the parties and having perused the order passed by the authority, in the first place, the Tribunal has found that the assessee had itself issued sale letters on Forms 20-21 under the Act with respect to the two wheelers it claims to have sold to M/s Jyoti Automobiles. This finding of fact being not assailed, what survives for consideration is a consequence in law of such finding. 7. The claim of the assessee that it had sold the goods to another registered dealer for sale in the same form and condition, would necessarily imply that no privity of cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clear case of farzi form or collusion between the selling dealer and the purchasing dealer, no liability may be fixed on the selling dealer merely because there may be some defect in the Form III-A issued by the purchasing dealer. 11. Inasmuch as, in the present case, it is clear that there was collusion between the two dealers, the Tribunal has not erred in rejecting the appeal filed by the assessee. 12. It is also been brought on record by the revenue that the assessment order against the purchasing dealer has been set aside by it's first appellate authority. 13. Thus, the questions of law as raised are thus answered against the assessee and in favour of the revenue:- (1) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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