1994 (10) TMI 272

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....x is not leviable on the purchases of goods enumerated in Schedule II of the M.P. Entry Tax Act, 1976, from a registered dealer in respect of whom such goods are local goods when purchased by another dealer of another local area?"   2.. The only facts necessary for answering the question, referred above, to us are as under: This is a common reference in relation to three assessees. They purchased pulses from registered dealers from another local area but denied their liability to pay entry tax under the provisions of the M.P. Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976 (for short, "the Entry Tax Act"). 3.. The contention advanced before the Board of Revenue was that the pulses were purchased from dealers outside....

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....d provision contained in proviso (iv) to section 3(1) of the Act shows that in respect of goods other than local goods no entry tax is payable by purchasing dealer, if such tax has already been paid by the registered selling dealer. The expressions "local goods" are explained in the provisions contained in section 7 of the Entry Tax Act which are also relevant and are quoted hereunder: "7. Registered dealers to issue bill, etc., stating that goods sold are local goods.-(1) Every registered dealer who, in the course of his business, manufactures, produces or grows any goods specified in Schedule II in a local area in such manner that the goods become local goods in relation to that local area, shall, on the sale of such local goods to any....

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.... been paid by him while exporting the goods in local area to make a statement in the bill or invoice or cash memo specifically issued to the purchasing dealer in effecting the sale of goods. Sub-section (5) of section 7 imposes the penalty on such selling dealer who fails to make the relevant statement in the bill, invoice or cash memo, as referred to in subsection (1) and a presumption is raised against him that an attempt was made for evasion of payment of entry tax. Examining the scheme of the Act and particularly, the provisions contained in sections 3 and 7 of the Act, we have no hesitation in holding that although for want of making due declaration or statement in the bill, invoice or cash memo a selling dealer may be subjected to pen....