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2021 (3) TMI 1141 - HC - VAT and Sales TaxSetting aside the tax liability created under Section 12 of the U.P. Tax on Entry of Goods Act - non-realization of tax by the manufacturer from the purchaser - HELD THAT:- The effect of Section 12 of the Act is only to provide for a mode of pre-payment of tax liability by the purchasing dealer. It does not in any way shift the impost of tax from purchasing dealer to the manufacturer. Also, the provisions of Section 12(3) of the Act come into play only in the event of the manufacturer having collected from the purchasing dealer, the amount of entry tax due and having still failed to deposit the same for and on behalf of the purchasing dealer. That provision does not create any charge of tax on the manufacturing dealer who may have sold the goods and handed over their delivery to the purchasing dealer on the representation made by the latter that he was not intending to sell the goods outside the local area where the delivery of the goods had been obtained by him or in the course of interstate trade. The fact that the purchasing dealer may have acted contrary to the representation made to the manufacturer may expose such purchasing dealer to further consequences without creating any charge or liability of tax on the manufacturer. There is no error in the order passed by the Tribunal. Accordingly, the question of law as framed above is answered in the affirmative i.e. in favour of the assessee and against the revenue - Petition dismissed.
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