JUDGMENT D. M. DHARMADHIKARI, J. - The Board of Revenue, by statement of case drawn up on May 27, 1983, in exercise of powers under section 44(1) of the M.P. General Sales Tax Act, 1958 (for short, "the Act"), has referred the following question of law for decision by this Court : "Whether, under the facts and circumstances of the case, the Board was justified in holding that entry tax is not leviable on the purchases of goods enumerated in Schedule II of the M.P. Entry Tax Act, 1976, from a registered dealer in respect of whom such goods are local goods when purchased by another dealer of another local area ?" 2. The only facts necessary for answering the question, referred above, to us are as under : This is a common reference in relation to three assessees. They purchased pulses from registered dealers from another local area but denied their liability to pay entry tax under the provisions of the M.P. Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976 (for short, "the Entry Tax Act"). 3. The contention advanced before the Board of Revenue was that the pulses were purchased from dealers outside the local area of Gwalior and that the same dealers having failed to make the declaration as contemplated by sub-section (1) of section 7 of the Entry Tax Act, there is no corresponding liability on the purchasing dealers, i.e., assessees in all the three cases for payment of entry tax. 4. In order to decide the question, referred above, it would be necessary to examine the relevant provisions of the Entry Tax Act, section 3(1)(a), (b) of which reads as under : "3. 4. In order to decide the question, referred above, it would be necessary to examine the relevant provisions of the Entry Tax Act, section 3(1)(a), (b) of which reads as under : "3. (1) There shall be levied an entry tax - (a) on the entry in the course of business of a dealer of goods specified in Schedule II, into each local area for consumption, use or sale therein; and (b) on the entry in the course of business of a dealer of goods specified in Schedule III, into each local area for consumption or use of such goods as raw material or incidental goods or as packing material or in the execution of works contracts but not for sale therein; and such tax shall be paid by every dealer liable to tax under the Sales Tax Act who has effected entry of such goods : Provided that no tax under this sub-section shall be levied - (i) in respect of .......... rupees 20,000 respectively; (ii) in respect of ............ rupees 50,000; (iii) ............ (iv) in respect of goods specified in Schedule II, other than local goods, purchased from a registered dealer on which entry tax is payable or paid by the selling registered dealer." The above quoted provision contained in proviso (iv) to section 3(1) of the Act shows that in respect of goods other than local goods no entry tax is payable by purchasing dealer, if such tax has already been paid by the registered selling dealer. The expressions "local goods" are explained in the provisions contained in section 7 of the Entry Tax Act which are also relevant and are quoted hereunder : "7. Registered dealers to issue bill, etc., stating that goods sold are local goods. - (1) Every registered dealer who, in the course of his business, manufactures, produces or grows any goods specified in Schedule II in a local area in such manner that the goods become local goods in relation to that local area, shall, on the sale of such local goods to any other registered dealer, issue to him a bill, invoice or cash memo specifically stating in such manner as may be prescribed, that the goods being sold are local goods in relation to such local area and that no entry tax has been paid on such goods. (2) Where the goods mentioned in sub-section (1) are purchased and sold in the course of their business by a chain of registered dealers, the selling registered dealer shall issue a bill or invoice or cash memo, containing, the statement referred to in sub-section (1) : Provided that where the goods are purchased by a registered dealer who effects the entry of such goods into a local area other than the local area in relation to which such goods are local goods, it shall not be necessary for him to make the statement referred to in sub-section (1). (3) Every registered dealer ......... goods are local goods. (4) ............... (5) Where a registered dealer referred to in sub-section (1) or sub-section (2) has, in the course of his business, sold local goods to other registered dealers and has failed to make the statement referred to in sub-section (1), it shall be presumed that he has facilitated the evasion of entry tax on the local goods so sold and accordingly he shall be liable to pay penalty equal to ten times the amount of entry tax payable on such goods as if they were not goods of local origin." 5. The above quoted provisions of section 7 cast a duty on the selling dealer wherever entry tax has not been paid by him while exporting the goods in local area to make a statement in the bill or invoice or cash memo specifically issued to the purchasing dealer in effecting the sale of goods. Sub-section (5) of section 7 imposes the penalty on such selling dealer who fails to make the relevant statement in the bill, invoice or cash memo, as referred to in sub-section (1) and a presumption is raised against him that an attempt was made for evasion of payment of entry tax. Sub-section (5) of section 7 imposes the penalty on such selling dealer who fails to make the relevant statement in the bill, invoice or cash memo, as referred to in sub-section (1) and a presumption is raised against him that an attempt was made for evasion of payment of entry tax. Examining the scheme of the Act and particularly, the provisions contained in sections 3 and 7 of the Act, we have no hesitation in holding that although for want of making due declaration or statement in the bill, invoice or cash memo a selling dealer may be subjected to penalty under sub-section (5) but the provisions of the Act do not absolve the purchasing dealer of his liability for payment of entry tax in relation to such goods which are brought into a local area and on which no entry tax is found to have been paid by the selling dealer. 6. For the aforesaid reasons, we answer the reference as under : In the facts and circumstances of the case, the Board was not justified in holding that the entry tax is not leviable on the purchases of goods enumerated in Schedule II of the M.P. Entry Tax Act, 1976, from a registered dealer in respect of whom such goods are local goods; when purchased by another dealer of another local area. The reference is thus answered against the assessee and in favour of the department. 7. In the circumstances, parties should bear their own costs, as the assessee is not represented in this Court. Reference answered in the negative.