TMI Blog2014 (4) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... he goods inside the local area where it has to be consumed, used or sold, would not be a part of "value of goods" for the purpose of tax liability under Act, but it shall confine upto the stage where the goods are brought inside the local area – ‘Sale price' of the goods by importer, inside the local area, cannot be identified as "value of goods" under Act - The price on which the goods are sold by assessee to its ultimate consumers inside local area cannot be taken as "value of goods" for the purpose of taxability under Act, 2007 – Judgment of Tribunal set aside - Matter remanded back to Tribunal for passing of fresh order - Decided in favour of assessee. - Sales/Trade Tax Revision No. - 158 of 2011, Sales/Trade Tax Revision No. - 898 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... natural gas and no entry tax can be demanded on the sale price at which the natural gas is subsequently sold by the applicant to the customers which is being illegally treated as Market value by the department? (iii) Whether under Section 4 of Act, 2007 the entry tax at the rate of 3 per cent is to be paid on the value of the goods as defined in Section 2 (h) of the Entry Tax Act, hence the market value of the goods will only be taken into account when the goods have been acquired otherwise than by way of purchase? (iv) Whether in any view of the matter, the order passed by Tribunal confirming the imposition of tax in respect of the entry tax not on the purchase price of natural gas by the applicant but on its sale price i.e. on the m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value of goods cannot be equated or identified with the sale price of the goods, by importer within local area. The entry of goods visualizes three kinds of import. First one, since goods are brought in a local area from any place outside such area, theretofore, the cost of purchase outside such area and all other incidental charges incurred, to bring such goods into local area can be included in the value of goods but the sale price of dealer/importer to its consumers would not be treated as value of goods , which may include charges or expenses, if any, incurred inside local area and the profit margin etc. Similar is the position in respect to rest two, where the goods are brought from outside the State into the local area or from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the price for computation of tax. And there is no ambiguity or any vagueness in this behalf. There is thus specific guideline in the charging section itself for taking into account the price according to which tax would be computed. The Hight Court negatived this contention by observing that it would be open to the dealer to choose either the sale price or the purchase price whichever is favourable to him for computation of his liability to tax. This approach overlooks the specific language of s. 3 which clearly indicates what price is to be taken into account for computing the tax. When the goods are brought within the local area they have a certain price. The price may be the price which the importer of goods has paid before bringing th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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