Entry tax liability remains with the purchasing dealer; manufacturer is only a collecting and depositing conduit under the statute.

Section 12 of the Uttar Pradesh Tax on Entry of Goods into Local Areas Act, 2007 places the entry tax burden on the purchasing dealer, with the manufacturer acting only as the recipient and depositor of the amount at delivery. The provision does not create an independent tax liability on the manufacturer. Liability shifts to the manufacturer only where tax is collected and then not deposited, in which case the collected amount, interest and penalty are recoverable from him. The statutory scheme treats any deposit as made on behalf of the purchasing dealer, so the revenue's attempt to fasten the tax burden on the manufacturer failed and the revision was dismissed.

---

---

Issues: Whether the liability under Section 12 of the Uttar Pradesh Tax on Entry of Goods into Local Areas Act, 2007 is imposed on the manufacturer when the purchaser fails to reimburse or the manufacturer does not deposit the amount collected.

Analysis: Section 12 requires the purchasing dealer to pay entry tax to the manufacturer at the time of taking delivery, and the manufacturer's role is to receive and deposit that amount. The provision does not create an independent tax charge on the manufacturer. Sub-section (3) applies only where the manufacturer, after collecting the tax, fails to deposit it, in which event the collected amount, interest, and penalty become recoverable from the manufacturer. Sub-section (6) further shows that any deposit is deemed to have been made on behalf of the purchasing dealer. The statutory scheme therefore provides only a mode of pre-payment of the purchaser's liability and does not transfer the tax burden to the manufacturer.

Conclusion: The manufacturer was not liable for the entry tax in the manner contended by the revenue, and the revision was liable to be dismissed.

---