TMI Blog1995 (12) TMI 346X X X X Extracts X X X X X X X X Extracts X X X X ..... om their various units and used to store them at a place called Doddabathi which is situated some distance outside the local area of Chitradurga. According to the appellants out of the total stocks that used to be received at this depot, a certain percentage was used for supply to various local areas where the provisions of the Karnataka Tax on Entry of Goods into local Areas for Consumption, Use or Sale Therein Act was in operation. They however contended that as is the normal practice another sector of the goods was loaded in vans and was supplied to various customers of theirs in the mofussil and rural areas and that consequently in respect of this sector/category of goods that they were not liable to any entry tax. The assessing autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellants' firm which was based at Chitradurga and which admittedly came within the ambit of the Act and he therefore came to the conclusion that as far as the law is concerned, the entire quantity of beedies would be liable to tax in so far as it is deemed to have been received and sold by the firm within the local area. It is against this order that the present set of appeals have been directed. 3.. We have heard the appellants' learned advocate and the learned advocate who represents the department. We have also perused the records of the case and considered the law on the point. The principal contention canvassed on behalf of the appellants is that it was wholly irrelevant as to whether the assessee had in fact stated or demonstrate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is concerned is undisputed. The figures which were accepted by the assessing officer have been verified and found to be correct by the revisional authority. In this view of the matter, it is his contention that there was no ground whatsoever either factual or legal to have saddled the appellants with the additional tax burden. 4.. On behalf of the department, it has been submitted that there is considerable scope for defending the department's action as far as the present cases are concerned. The submission proceeds on the footing that even though the goods may have been physically brought to Doddabathi, as far as the firm is concerned admittedly it is located and is doing business where the provisions of the Act are applicable and it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e use or consumption of the goods taken place. On the record before us, in respect of the category of goods where the appellants claim that goods were sold and consumed outside the local area, we have no reason to dispute the correctness of the findings. Applying those findings, the law would require that the sector of goods in question would have to be exempted from the levy of entry tax. 6.. In the result, this set of appeals is liable to succeed. The impugned order dated July 30, 1991, passed by the revisional authority is quashed and set aside and the earlier assessment orders are upheld. In the circumstances of the appeals, there shall be no order as to costs. 7.. The learned advocate who represents the appellants points out that u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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