https://www.taxtmi.com/caselaws?id=154344 Section 18(7) of the Madhya Pradesh General Sales Tax Act applies only where sales to favoured buyers at abnormally low prices are shown to have been effected with the dominant object of evading tax. A longstanding distributing agency arrangement, existing since 1951 and found to be a genuine commercial structure aimed at reducing internal competition, did not satisfy that test merely because it incidentally produced a tax advantage. In the absence of proof that the agency was fake or that evasion was established, invocation of section 18(7) was unjustified, and the appellate view declining revision under section 39(2) was legally sustainable. en-us Fri, 10 Sep 1982 00:00:00 +0530 Tue, 13 Feb 2018 11:38:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=154344 Section 18(7) of the Madhya Pradesh General Sales Tax Act applies only where sales to favoured buyers at abnormally low prices are shown to have been effected with the dominant object of evading tax. A longstanding distributing agency arrangement, existing since 1951 and found to be a genuine commercial structure aimed at reducing internal competition, did not satisfy that test merely because it incidentally produced a tax advantage. In the absence of proof that the agency was fake or that evasion was established, invocation of section 18(7) was unjustified, and the appellate view declining revision under section 39(2) was legally sustainable. Case-Laws VAT and Sales Tax Fri, 10 Sep 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=154344