TMI Blog2018 (5) TMI 1093X X X X Extracts X X X X X X X X Extracts X X X X ..... or the Revenue to make inquiries; if found necessary. In a given situation, this may give rise to a further probe or even total denial of the relief from the operation of sub-section [7] of Section 206C of the Act; if necessary facts are not on record. However, in the present case, no such element is brought on the record by the Revenue. - Decided against revenue - Tax Appeal No. 199 of 2018 - - - Dated:- 13-3-2018 - For The Petitioner : Mrs Mauna M Bhatt, Advocate ORAL ORDER ( PER : HONOURABLE Mr. JUSTICE AKIL KURESHI) Revenue is in appeal against the judgment of the Income Tax Appellate Tribunal, Rajkot Bench dated 9th August 2017 raising following question for our consideration : Whether the Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vocates for the Revenue, we noticed that in terms of sub-section [1] Section 206C of the Act, every seller would have to collect tax at source at the time of sale of goods at the prescribed percentage and deposit the same with the Government revenue unless in terms of sub-section [1A] thereof, the buyer has furnished to such seller, declaration in writing in a prescribed form and fulfilled in prescribed manner that the goods are to be utilized for the purpose of manufacturing, processing or producing articles or things, or for the purpose of generation of power and not for trading purpose. Sub-section [1] of Section 206C is thus a substantive requirement of collection of tax at source and depositing of the same with the Revenue. Sub-section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale of goods aimed for specified purpose. This Court in case of Commissioner of Income-tax [TDS] v. Siyaram Metal Udyog Private Limited, reported in [2016] 71 taxmann.com 204 [Gujarat] had dealt with somewhat similar situation, wherein following observations have been made : 8. Thus, in terms of the explanation clause (aa) any person who purchases the goods in retail sale for personal consumption would not be included within the definition of term buyer . It is, therefore, that under sub-section [1A] of section 206C, calculation of tax under subsection [1] would not be made, if the buyer furnishes to the person responsible for the tax a declaration in writing in prescribed form declaring that the goods in question are to be utiliz ..... X X X X Extracts X X X X X X X X Extracts X X X X
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