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TMI Blog2022 (2) TMI 951X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee to allege that the goods that were received by it inside the local area could not be consumed, used or sold because they got damaged or were lost. What the assessee was obligated to establish to avoid the liability of tax was the fact that such goods did not enter the local area in a fit state as may have rendered them capable of consumption, use or sale therein. In the present facts, the assessee only claimed, the goods inside the local area stood lost or were damaged. The point of time when such loss and/or damage was caused was neither pleaded nor proven. Therefore, it cannot be ascertained if the loss and/or damage to the goods (claimed by the assessee) was suffered before the goods entered the local area of Allahabad or the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rect. To that extent, the question of law is answered in favour of the assessee and against the revenue. The present revision is partly allowed. - Sales/Trade Tax Revision No. - 176 of 2012 - - - Dated:- 17-2-2022 - Hon'ble Saumitra Dayal Singh, J. For the Revisionist : Shubham Agrawal For the Opposite Party : C.S.C. ORDER HON'BLE SAUMITRA DAYAL SINGH, J. 1. Heard Shri Shubham Agrawal, learned counsel for the applicant-assessee and Shri Jagdish Mishra, learned Standing Counsel. 2. Present revision has been filed by the revenue against the order of the Commercial Tax Tribunal, Allahabad Bench, Allahabad, dated 19.9.2011 in Second Appeal No. 553 of 2010 for the A.Y. 2004-05 (Entry Tax). By that orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of law is concerned, it is observed, the liability to pay entry tax arises not on the consumption, use or sale of any goods inside a local area but on the entry of such goods for the purpose of consumption, use or sale therein. Therefore, the levy attracts at the point of goods entering the local area and not at the later stage. In that view, it was never enough for the assessee to allege that the goods that were received by it inside the local area could not be consumed, used or sold because they got damaged or were lost. What the assessee was obligated to establish to avoid the liability of tax was the fact that such goods did not enter the local area in a fit state as may have rendered them capable of consumption, use or sale therein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e kind or like quality. Further, in view of that Explanation, the value addition of the goods may not arise upon things done to those goods after their receipt inside the local area. That interpretation has been accepted by a learned Single Judge of this Court in Gas Authority of India Ltd. Sanjay Palace Thru' Its G.M., Agra vs. Commissioner of Commercial Tax, U.P., Lucknow, (2014) UPTC 357. In paragraph no.7 of that decision, it has been observed as under:- 7. The above observations are attracted squarely in the present case also. In view of the above discussion, otherwise view taken by Tribunal is clearly erroneous and unsustainable. The questions formulated above, therefore are answered by observing that the expenses incurre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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