2007 (12) TMI 425

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....rala and sold to the brand name holder for marketing in the State. The first respondent found that as against the normal margin of 15 per cent in the nature of wholesale trade of the product, the brand name holder resold the item after purchase from petitioner at a gross profit of 55.05 per cent. The first respondent, therefore, rejected petitioner's sales consideration and made assessment under section 19B of the KGST Act. The turnover adopted for first sale by petitioner is 85 per cent of the sales turnover of the brand name holder, i.e., by providing a margin of 15 per cent towards gross profit. In fact, the original assessment orders were subjected to appeals and the impugned orders are issued after remand by the appellate authorit....

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....the judgment in S.T. Rev. No. 227 of 2003 dated January 5, 2004 wherein a Division Bench of this court has held that in the case of tax evasion, the assessing officer will be entitled to make assessment under section 19B, and submits that the petitioner's case is clearly covered by the said decision. The first case, above referred, relied on by the petitioner pertains to manufacture and sale of product by a dealer in Kerala to the brand name holder, which is also within Kerala. So far as the second decision of this court is concerned, it has nothing to do with the product with a brand name. The case herein is one of a clear scheme of evasion of tax practised by the brand name holder with the assistance of the petitioner because the pet....