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2014 (9) TMI 417 - HC - VAT and Sales TaxConstitutional Validity of section 15(2)(xi) of the KVAT Act - mandatory requirement to seek registration even if assessee not liable to sales tax - The case of the petitioner is that in a hallmarking unit, there is no sale or delivery of any goods and that therefore, it is not liable to get itself registered under the Act. - Held that:- A reading of the principles laid down by the apex court in the last two judgments where provisions of the Tripura and Assam Acts were upheld by the apex court show that the apex court found that the maintenance of accounts in the prescribed manner and furnishing such information as the Commissioner requires, were for achieving the object of ceiling loopholes of escape from the levy of tax and that the incidental powers under entry 54 entitled the State Legislature to legislate upon these subjects as well. Section 40 of the Act provides that every person registered under the Act, every dealer liable to get himself registered under this Act, etc., shall keep and maintain a true and correct accounts and other such account as may be prescribed in the manner provided in the Act. Similarly section 44 also empowers the provisions of accounts and also confers power of entry, such as rule 58 have been framed under the Act for the effective implementation of these statutory provisions. These provisions are incorporated in the KVAT Act with identical objects and for achieving the very same purposes which are found by the apex court to sustain the provisions of the Tripura and Assam Acts. - Therefore, in view of the principles laid down by the apex court in the aforesaid judgments, the challenge against section 15(2)(xi) has to fail. - Decided against the assessee.
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