TMI Blog2015 (5) TMI 595X X X X Extracts X X X X X X X X Extracts X X X X ..... lity to pay tax is on the seller only. If the case falls under Section 8-A(5)(a) of the Act, the liability could be foisted on the purchaser-assessee. In the instant case, as the notification on which, reliance was placed is not applicable to the furniture, the assessee has not contravened any restrictions or conditions stipulated in the said notification. Because the said notification is not applicable at all. Therefore, the Tribunal was justified in holding that the tax is to be collected by the seller but action to be taken against the assessee for producing the certificate and a notification which has no application insofar as furniture is concerned. Since Section 8-A(5)(a) of the Act is not attracted to the facts of the present case, n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tate subject to certain conditions, restrictions and procedure prescribed therein. The goods purchased were various kinds of furniture for use in the business premises of the assessee. They do not fall under the above classifications and the notifications entitling the assessee for tax exemption. Therefore, the assessing authority held that there was contravention of notifications by which, as per Condition No.V of the notification dated 14-09-2001 and therefore tax was levied on the assessee and penalty was also imposed. The said order was challenged before the First Appellate Authority who affirmed the said order but deleted imposition of penalty on the ground that there was no malafide intention in issuing the Certificate. Aggrieved by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ption and accordingly prevented the seller from collecting tax from him. It is a clear case of misrepresentation, misuse of exemption notification and therefore, under Section 8-A(5)(a) of the Karnataka Sales Tax Act, 1957 (hereinafter referred to as 'the Act' for short) and hence the assessee is liable to pay tax. 4. Per contra, learned counsel for the assessee submitted that the notification and the certificate issued do not relate to furniture at all. Therefore, the assessee has not contravened any restrictions nor there is noncompliance of any conditions stipulated in the notification and therefore Section 8-A(5)(a) of the Act is not attracted at all and the Tribunal was justified in holding that the liability of tax on the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot contravened any restrictions or conditions stipulated in the said notification. Because the said notification is not applicable at all. Therefore, the Tribunal was justified in holding that the tax is to be collected by the seller but action to be taken against the assessee for producing the certificate and a notification which has no application insofar as furniture is concerned. Since Section 8-A(5)(a) of the Act is not attracted to the facts of the present case, no liability could be foisted on the assessee. That is what precisely the Tribunal has held. The questions of law are answered in favour of the assessee and against the Revenue. Therefore, we do not see any merit in the revision petition. Accordingly, it is dismissed. - - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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