TaxTMI 
TaxTMI 
2006 (2) TMI 612
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.... respondent-company is engaged in the manufacture and sale of sophisticated medical diagnostic imaging equipment required by various hospitals and medical practitioners. The goods manufactured by the respondent are considered by the lower authorities as machinery which is one of the goods liable for entry tax under the provisions of the Karnataka Tax on Entry of Goods into Local Areas for Consumption, Use or Sale Therein Act, 1979 (for short, hereinafter referred to as "the Act"). The respondent's business premises is near Whitefield which is not a local area during the assessment year under appeal. On the ground that, at the instance of the respondent, entry of goods have been caused into the local area, where customers are l....
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....tered into local area even though the respondent-company had arranged for transit insurance but that is on behalf of the buyer for which amounts are recovered in the bills, it cannot be held that the assessee is liable to pay entry tax having brought the said goods into the local area. Accordingly, the appeal was allowed. Levy of entry tax was set aside. Aggrieved by the same, the State has preferred this revision petition on the ground that the Tribunal has decided erroneously on question of law under section 3(2) of the Act. We have heard the learned counsel for the parties. Section 3 is a charging section. Sub-section (1) of section 3 provides for levy of tax on entry of goods specified in the First Schedule at such rates not exceeding....
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....vis the position of a carrier or persons of similar nature. The carrier is not a dealer, but in practice, it is the carrier who actually causes entry of the goods into the local area. It may be at the instance of the seller or purchaser, both of whom are dealers under the Act. Therefore, it is made clear that if the entry of the goods to the local area is not caused at the instance of the manufacturer or seller, and the goods are taken delivery on its entry into a local area or brought into a local area by a person other than a dealer, the dealer who takes delivery of the goods from such person, by a legal fiction, is deemed to have brought or caused to have brought the goods into the local area and liable to pay entry tax. Therefore, the....