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2008 (3) TMI 640 - HC - VAT and Sales TaxViolation of principle of natural justice - Whether the transporter is liable to pay sales tax if he is not a dealer? If so, to what extent is his liability? - What is the effect of failure on the part of the transporter to account for the goods he is carrying and whether the STO is justified in demanding ₹ 90,152 from the petitioner to avoid seizure of goods and the revisional authority is also justified to uphold such order of the STO? Held that:- As per the provisions of sub-section (2) of section 3 of the Entry Tax Act, 1999, any person who brings or causes to be brought into a local area any Scheduled goods on his account or on account of the principal or customer he is liable to pay entry tax. The transporter having caused the entry of goods into the local area of Cuttack is liable to pay entry tax. After giving our thoughtful consideration to the submissions made by the counsel of the respective parties, we are of the view that the STO has not committed any illegality in demanding ₹ 90,152 which he calculated applying the basis indicated in the second proviso to sub-section (5) of section 16D and entry tax leviable on entry of such goods into local area of Cuttack without seizing and confiscating the goods loaded in the vehicle. The revisional authority has rightly upheld such order of the STO. Appeal dismissed.
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