2011 (8) TMI 1048

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....year 2003-04. We have heard counsel for the petitioner and Government Pleader for the respondent. Admittedly the appellant got PVC pipes manufactured in their brand name "Sakthiman" from a SSI unit which claimed exemption from sales tax based on the declaration in form No. 25D issued by the petitioner stating that petitioner is paying tax on sale of the products in the brand name which is the point of levy by virtue of operation of section 5(2) of the Act. Section 5(2) itself was introduced to the statute to levy tax on wholesale market price of the goods when sold by the brand name holder. The petitioner also concedes their liability under section 5(2) as deemed first seller of goods being brand name holders selling goods after purchase....

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....eller Description of goods Quantity Value (1) (2) (3) (4) (5)           Place: Name and status of the person signing the certificate Date: Name and address of the SSI unit. This notification shall come into force on the 1st day of January 2000. The claim made by the petitioner is that even though the rate of tax on PVC pipes under the relevant entry of the First Schedule to the KGST Act is 12 per cent, the petitioner is entitled to concessional rate at eight per cent as their purchase is from SSI unit. However, the Government Pleader submitted that what is required is not purchase from SSI unit but such SSI unit should issue annexure IV form prescribed under t....

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....d name making them liable for payment of tax under section 5(2) of the Act. Even though counsel for the petitioner contended necessity of annexure IV form declaration in terms of the above provision of the notification was not considered by any of the authorities and the petitioner should be given an opportunity to obtain and produce the same, we do not think there is any scope for it because the very fact that SSI unit has obtained form No. 25D from the petitioner proves beyond doubt that but for the declaration obtained and produced by them, they would have been liable to pay tax on the products sold to the petitioner, no matter the petitioner happens to be liable under section 5(2) by virtue of the sale by them under brand name. In ot....