2006 (3) AIR Kar R 118

Karnataka High Court

Hon'ble Judge(s): P. Vishwanatha Shetty, N. Kumar , JJ

Karnataka Tax on Entry of Goods Act (27 of 1979) , S.3— Levy of tax on entry of goods into local area - Liability of dealer to pay tax - Test is not where sale took place and title to goods passed - It is dealer who causes entry into local area who is liable to pay tax. The language employed in S. 3. is clear and unambiguous. The tax is liable to be paid by every registered dealer or a dealer liable to get himself registered under the Act. Such liability is foisted on such dealer, if he brings or causes to be brought into local area the goods. The dealer may bring the goods into the local area on his own account or on account of his principal. It may be also on account of any other person or who takes delivery or is entitled to take delivery of such goods on its entry into a local area. The explanation clarifies the intention of the legislature vis-avis the position of a carrier or person of similar nature. The carrier is not a dealer, but in practice, it is the carrier who actually causes entry of the goods into the local area. It may be at the instance of the seller or purchaser, both of whom are dealers under the Act. Therefore, it is made clear that if the entry of the goods to the local area is not caused at the instance of the manufacturer or seller, and the goods are taken delivery on its entry into a local area or brought into a local area by a perso....