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2008 (2) TMI 829 - KERALA HIGH COURTLiability for tax under section 5A of the Act on the purchase of goods manufactured by an exempted unit in the appellant's brand name - Held that:- In this case since the supplier is entitled to exemption on their sales by virtue of another notification issued under section 10 of the Act, there was no necessity for the appellant to issue any declaration in terms of sub-section (2A) of section 5 for the seller to claim exemption. However, all the conditions of section 5(2B) are satisfied inasmuch as the appellant has purchased and despatched the branded goods to outside the State otherwise by way of inter-State sale and since the supplier has not paid sales tax on their sales by virtue of exemption granted to them, the appellant is liable to pay tax under section 5(2B) of the Act. Therefore, even if the first point raised is answered in favour of the appellant, the appellant has no escape from liability by virtue of operation of section 5(2B) of the Act.
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