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2011 (6) TMI 334 - AT - Income TaxCollection of tax under the provisions of section 206C - Sale of goods - Held that:- For the financial year 2004-05 with which are concerned in the present appeal, the law relating to the definition of buyer was as per the Taxation Laws (Amendment) Act w.e.f. 8-9-2003 - The appellant obviously do not fall in sub-clause (ii) or clause (a) of the Explanation to section 206C - Going by the spirit of the letter, dt. 10-1-1996 of the Board the appellant was not required to deduct tax at source if it falls in any of the exceptions provided in Clause (a) of Explanation to section 206C. As stated earlier, the appellant does not fall in any of the exceptions. Hence, the appellant’s argument that provisions of section 206C are not applicable for the sales made by it, is not acceptable and this ground of appeal is dismissed. Collection of tax at source under section 206C - Appellant contended that part of the products were sold to certain purchasers who utilized the same in the manufacturing process - Held that:- Appellant has neither furnished the details of the buyers who furnished such Form No. 27C nor furnished the evidence relating to the fact that copies of such declarations were delivered to the Chief Commissioner or Commissioner - Decided against the assessee. Tax liability - TCS - While section 201(1) treats an assessee who fails to deduct the tax at source or after deduction, does not pay the same to the Government as an assessee in default - Held that:- Section 206C(6) clearly provides that any person responsible for collecting the tax who fails to collect the tax in accordance to the provisions of the said section, shall, not withstanding such failure, be liable to pay the tax to the credit of the Central Government - Thus, in case of failure to effect the TCS, becomes the liability of the collector of such tax and he is mandatorily required to pay the same to the Central Government as the word used in the said section is "shall" - Therefore, the case law relating to section 201(1) would not be applicable to the cases covered under section 206C(6) of the Act - Decided against the assessee.
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