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2014 (1) TMI 1465 - HC - VAT and Sales TaxLevy of entry tax and penalty on the sale of sugar manufactured in the petitioner's sugar mill through its selling agents - Whether a manufacturer who has sold the goods to a dealer failed to receive the amount then he is liable to pay penalty, tax and interest in terms of Section 12(3) of the U.P. Tax on Entry of Goods Act, 2008 - Held that:- petitioner company could not be compelled to make deduction of entry tax at source for sales made to persons/ dealers within the same local area. For the respondents, it is stated that transaction in question has not been examined, as the petitioner has not filed his reply. The question whether sale is made at factory gate, or the petitioner's agents are selling the sugar into different local areas where on the entry of non-levy sugar in that local area, entry tax is payable, which the petitioner is required to collect from its selling agents and deposit, failing which penalty is leviable, is question of fact - authorities, however, are still required to decide the petitioner's objections that the situs of sale is at factory gate and not in any other local area. The matter requires investigation of facts by the competent authority after considering the petitioner's objections - Following decision of Mawana Sugars Ltd. v. Deputy Commissioner, Commercial Tax & Ors. [2013 (6) TMI 28 - ALLAHABAD HIGH COURT] - Decided in favour of assessee.
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