AGRAWAL INDOTEX LTD Vs. ADDITIONAL COMMISSIONER COMMERCIAL TAX

JUDGEMENT

(1.) PETITIONER No. 1 Company registered under the Companies Act is engaged in the business of manufacturing and selling of yarn. It is registered dealer under the Commercial Tax Act, 1994 and the Central Sales Tax Act, 1956.

(2.) THE petitioner Company established a new Industrial Unit at chhaigaon Makhan District Khandwa. It was granted eligibility certificate from payment of Commercial Tax and Central Sales Tax. It was also granted certificate (Annexure P-1) of eligibility for exemption of Entry Tax for a period of five years w. e. f. 13-2-1998 to 12-2-2003 under the Entry Tax Act, 1976.

(3.) DURING the assessment proceeding for the financial year 1999-2000 the petitioner was asked by the second respondent to explain as to why the bills in respect of sales to M/s. Anupam Textiles. Burhanpur did not bear the rubber seal of "local goods for Khandwa, Entry Tax not paid" as required under Section 7 (1) of the Entry Tax Act and the Rules framed thereunder. The petitioner offered its explanation stating that it has sold its own manufactured goods giving necessary particulars in the sale bills about the exemption from tax and also issued requisite declarations to the purchasing dealers of goods being manufactured by it. It was further slated by the petitioner that the purchasing dealer who was liable to pay the tax for causing entry in his local area has paid the entry tax. That there was no intention to evade the tax by non-affixation of rubber seal. It was also stated that the presumption under Section 7 (5) of the entry Tax Act, being rebutable therefore, no penalty can be levied having regard to the explanation offered by it.