TaxTMI 
TaxTMI 
2015 (5) TMI 595
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....ance to the notifications on the appellant does not arise and accordingly granted relief to the assessee by setting aside the impugned orders. 2. The assessee is in the business of programming and development of software. The assessee had issued a Certificate on 30-09-2003 for Rs. 94,82,190/- towards purchases of various kinds of the furniture for use to M/s.Open Plan Office Systems, Lingarajpuram, Bangalore (hereinafter referred to as "the seller" for short). This seller of furniture produced the said certificate and obtained tax exemption. It was noticed by the Joint Commissioner of Commercial Taxes (Appeals) DVO, Bangalore (hereinafter referred to as 'First Appellate Authority' for short) that exemption is admissible as per Noti....
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.... for the purpose of availing tax exemption by the Seller. Therefore, it was held that the liability of tax for contravention or nonobservance or non-compliance to the notifications on the assessee does not arise. In fact, the liability of tax arises on the seller according to law due to taxable sales of furniture to the assessee out of gross sales effected at Rs. 1,08,46,785/-. Therefore the orders passed by the lower authorities were set aside and certain directions were issued to the lower authorities to take action even against the assessee for such misrepresentation. Aggrieved by the said order, the present revision petition is filed. 3. Learned Government Pleader appearing for the Revenue assailing the impugned order contends that the....
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....re? (iii) Whether the Department has power to proceed against the customer who allegedly did not pay tax to the dealer? 6. The facts are no in dispute. The assessee purchased furniture from the seller who is a dealer in furniture. The exemption notification relied upon is in respect of sale of raw materials, component parts and packing materials by the registered dealer to 100% Export Oriented Units. It has no application to the sale or purchase of furniture. The seller acting on the said notification which has no application, had granted exemption of tax to the assessee. He is at fault and primary liability to pay tax is on the seller only. If the case falls under Section 8-A(5)(a) of the Act, the liability could be foisted on the purcha....