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2014 (2) TMI 205 - HC - VAT and Sales TaxLevy of purchase tax - assessee has provided new TV sets in lieu of the old TV sets - Levy of tax on Exchange / Barter purchase - Imposition of penalty - Held that:- The transaction is certainly sale as the assessee was a dealer of Akai TV, has provided new TV sets in lieu of the old TV sets. Therefore, even exchange/barter, in my view, will fall within the definition of sale/purchase as defined under the Act. Had the assessee purchased goods,Assessee purchased goods, which were exempted or had the assessee proved that the initial purchaser, who had come with the old TV set for replacement/exchange by a new TV set had proved that it was a tax paid item, then possibly the contention of the assessee may have had some substance. It has been observed that the assessing officer repeatedly required the assessee to provide basis and evidence as to whether the initial purchaser had paid tax, but it is already on record that despite of repeated time having been allowed, no evidence was placed. Here is a case where neither sale/purchase was recorded in the books of accounts nor even shown in the return of income, neither even the credit notes were entered in the books of accounts, nor were shown in the return of sales tax - the penalty is leviable. Decided against assessee.
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