2021 (3) TMI 1141

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....66 of 2011 for A.Y. 2005-06 (Entry Tax). By that order, the Tribunal has allowed the appeal filed by the assessee and deleted the disputed demand of entry tax made from the assessee on the value of different quantities of sugar manufactured and dispatched by the assessee without obtaining prior deposit of entry tax. 3. The present revision has been pressed on the following question of law: "Whether under the facts and circumstances of the case, the Commercial Tax Tribunal was legally justified in affirming the order passed by the first appellate authority in setting aside the tax liability created under Section 12 of the U.P. Tax on Entry of Goods Act upon not realization of tax by the manufacturer from the purchaser?" 4. Bri....

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....provisions of Section 12(3) of the Act. 7. Having heard learned counsel for the parties and having perused the record, it would be relevant to take note of the Section 12 of the Act: "12. Realization of tax through manufacturer -- (1) Notwithstanding anything contained in any other provision of this Act, any person who intends to bring into a local area from any manufacturer within the State, such goods specified in the Schedule as may be notified by the State Government, shall, at the time of taking delivery of the goods from the manufacturer, pay to the manufacturer the tax payable on entry of such goods into the local area and the manufacturer shall receive the tax so paid. The manufacturer shall not deliver such goods to the....

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.... shall be deemed to have been deposited for and on behalf of the dealer from whom such tax has been received. The manufacturer shall mention the amount of such tax in the tax invoice or sale invoice, as the case may be, issued to the purchasing dealer. It shall be deemed to be the proof for deposit of tax unless the tax invoice or sale invoice, as the case may be, is found forged or bogus or fake or not validly issued or obtained fraudulently." 8. Besides the reason adopted by the learned Single Judge in the case of Commissioner, Commercial Tax Vs. S/s Ashoka Flavors Pvt. Ltd. (supra), it further appears that Section 12 of the Act does not create any liability of tax on the manufacturer. It only burdens the manufacturer to ensure pre-pay....