WRITTEN STATEMENT OF THE DEFENDANT

The Defendant state that no cause of action has been made out against the defendant. The present
suit has been filed to recover the sales tax dues of a division of the plaintiff known as the GICON on
the sales made by GICON customers. The Plaintiff alleges that the defendant is liable to pay a sum of
Rs. 2,18,55,339 towards the total sales tax dues of GICON on the basis of an alleged understanding
that the Defendant would be liable for the sale tax dues of GICON to the extent that the same arise
from the sale of the Defendants products by GICON . No documentary evidence has been produced
show any such understanding or agreement or arrangement between the plaintiff and the defendant.

The Plaintiffs demand for a portion of its sales tax dues from the defendant is merely a mala fide
attempt to delay and avoid paying the defendant a sum of Rs 95,84,030/- of which a separate suit has
been filed by the defendant against the Plaintiff in the Mapusa Civil Court at Goa. Suit ought to be
dismissed on this ground alone.

As per the Central Sales Tax Act, 1956 businesses were entitled to exemption from the payment of
sales tax accrued only on the collection and submission of appropriate sales tax declarations forms
from the end users. GICON issued FORM C to the defendant in return Defendant issued the relevant
sales tax declaration FORM E1 to GICON . The Defendant was in no way responsible for the collection
of sales tax declaration forms from the Customers of GICON. It is pertinent to note that there was no
arrangement or agreement between the plaintiff / GICON and the Defendant being responsible for
the sales tax liabilities of GICON to the extent of the Defendants products sold by GICON.

The Defendant would no longer market its products through GICON and no meeting was ever held
where it was decided that the Defendant would pay or continue to pay its share of GICONs expenses
and / or tax liabilities for the period when it was dealing with GICON as alleged in the Plaint at all.
GICON by its letter dated 19th May 2014 arbitrarily demanded a sum of Rs. 4,44,47,288 as the
defendants alleged share towards GICONs sales tax liabilities.

The Defendant by its letter dated 21st June 2014 replied to GICONs above-mentioned letters. By the
said letter the defendant stated that i) GICON and the defendant had always been two separate
companies at all points of time; ii) all government dues were paid and returns filed separately by both
GICON and the defendant; iii) relevant sales tax declaration forms were issued by both GICON (FORM
C) and the defendant (FORM E1) for all sales made by the defendant iv) the Defendant was not
responsible for the failure of GICON to collect FORM C from its customers in respect of goods of the
defendant sold by GICON to its customers; v) no amount was due from the defendant to GICON; and
vi) in fact money was due from GICON and the other Respondent companies to the Defendant.

It is submitted that the present Suit be dismissed with costs against the Plaintiff.