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TMI Blog2021 (3) TMI 1141X X X X Extracts X X X X X X X X Extracts X X X X ..... f the purchasing dealer. That provision does not create any charge of tax on the manufacturing dealer who may have sold the goods and handed over their delivery to the purchasing dealer on the representation made by the latter that he was not intending to sell the goods outside the local area where the delivery of the goods had been obtained by him or in the course of interstate trade. The fact that the purchasing dealer may have acted contrary to the representation made to the manufacturer may expose such purchasing dealer to further consequences without creating any charge or liability of tax on the manufacturer. There is no error in the order passed by the Tribunal. Accordingly, the question of law as framed above is answered in the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... judgement assessment under the Central Sales Tax Act, 1956 and rejected the claim of inter-State sale made by the assessee. As a consequence, the dispatch of sugar made by the assessee, claiming it to be inter-State sale was disbelieved and assessed as local sale wherein the entry of goods had been caused into a different local area than Muzaffarnagar where the assessee's mill was situated. The liability of entry tax had been raised relying on provisions of Section 12 of the Uttar Pradesh Tax on Entry of Goods into Local Areas Act, 2007 (hereinafter referred to as the 'Act'). The Tribunal has deleted the demand of entry tax on the reasoning, if the goods had been taken to a different local area by the purchaser, the liability ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section (1) shall submit to the assessing authority a return in respect of the goods supplied, and the tax received, by him under sub-section (1) and deposit the tax so received in such manner and within such time as may be prescribed. (3) Where any manufacturer fails to deposit, the tax under this section he shall be liable to pay the tax along with the interest and penalty, if any, payable thereon which shall be recoverable as arrears of land revenue. (4) Where the Assessing Authority is satisfied that any goods referred to in sub-section (1) is lost or destroyed after its delivery by the manufacturer and before its entry into the local area, it shall direct that the tax paid in respect of such goods shall be refunded to the per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2(1) of the Act clearly stipulates that the purchasing dealer shall pay to the manufacturer the amount of entry tax payable on the goods before taking delivery of the goods from the manufacturer. It is this amount which may be required to be paid by the purchasing dealer by way of tax liability imposed on him. It has been required to be deposited by the manufacturer under sub-Section 2 of Section 12 of the Act. 9. Sub-Section 3 of Section 12 of the Act only provides a consequence of default committed by the manufacturer in depositing the amount of tax received by him. Thus, if a manufacturer fails to deposit the amount of entry tax received by him from the purchasing dealer, such manufacturer would expose himself to pay the tax amount ..... X X X X Extracts X X X X X X X X Extracts X X X X
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