MANISH TRADERS Vs. ADDITIONAL COMMISSIONER

JUDGEMENT

(1.) CHALLENGE in this petition under Article 226 and 227 of the Constitution is made by the registered dealer to orders passed by the assessing authority namely the Assistant Commissioner, Commercial Tax vide assessment order dated 7.3.2003, in the matter of imposing liability on the assessee for payment of entry tax for the period 1.4.1998 to 31.3.1999; and, the order passed by the revisional authority under section 62(1), rejecting the revision filed by the petitioner assessee.

(2.) - Petitioner claims to be a proprietary concern engaged in the business of sale and purchase of Soya Oil. It is stated that they purchased Soya Oil from M/s MP Glychem Industries Limited, Gadarwara. The petitioner purchased the aforesaid oil for carrying out business pertaining to sale of Vanaspati, Edible Oil, Ghee, Sugar, Salt etc. Petitioner filed his return for the first, second and third quarter and paid entry tax in accordance to his liability. Assessment was made by respondent No.2 Manish Traders Vs. Addl. Commissioner, Commercial Tax and another. and at the time of assessment it was the case of the petitioner that purchase of refined Soya Oil from M/s MP Glychem Industries Limited, Gadarwara, for the purpose of entry tax under the MP Sthaniya Kshetra Mein Mal Pravesh Par Kar Adhiniyam, 1976 (hereinafter referred to as ,,Entry Tax Act), are tax paid, as the said dealer is a registered dealer. However, it seems that in the bills as the registered dealer namely ­ M/s MP Glychem Industries Limited, Gadarwara did not disclose the fact of payment of entry tax on the goods, as required under section 7(1), claim of the petitioner was not accepted and the petitioner was subjected to payment of entry tax and interest under section 26(4)(a). Challenging the order of assessment, revision was filed and the same having been also rejected, this writ petition has been filed.

(3.) - Placing reliance on a judgment of the Full Bench of this Court, in the case of Mohan Singh and sons Vs. Commissioner of Sales Tax, MP ­ (1996) 29 VKN 243, learned Senior Advocate argued that the assessing authorities have misconstrued the provisions of sub - section (1) of Section 7, which mandates that if a registered dealer in the due course of business manufactures ,,goods specified in Schedule II, in such a manner that ,,goods become ,,local goods in relation to that area, he has to specifically state the same and when such ,,goods are sold, it remains a ,,local good in relation to such ,,local area and that no ,,entry Manish Traders Vs. Addl. Commissioner, Commercial Tax and another. tax is payable. Contenting that in the present case, the onus of payment of entry tax is on M/s MP Glychem Industries Limited, Gadarwara and as they have discharged this liability, imposition of liability and interest on the petitioner is unsustainable. That apart, even if any liability is to be fixed, it should be fixed on M/s MP Glychem Industries Limited, Gadarwara and for the same enquiry and burden of proof as laid down by the Full Bench in the case of Mohan Singh (supra) should have been applied, argument is made to say that the order passed is unsustainable.