| The Tax Publishers 2020 TaxPub(VAT) 0094 (Chhatt-HC) ENTRY TAX ACT, 1976
Section 3(1)(a)
Where assessee challenged levy of entry tax on goods brought into premises of Railways contending that place was part of Railway land, which was not a local area, considering that place in question was situated in local area as notified by the Municipality, it was held that goods were brought by assessee to the “local area” and as such assessment was righty finalized.
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Levy of entry tax - Goods brought into premises of Railways - Part of Railway land, whether “local area” -
Assessee was engaged in manufacture of RCC Sleepers in factory set up on land belonging to Railways. Entry Tax in respect of goods used in manufacturing brought into premises of Railways, was not charged in terms of section 3(1)(a) of Entry Tax Act, 1976, as land belonging to Railways did not fall within meaning of term “local area” defined under statue. Thereafter, Apex Court in Senior Divisional Mechanical Engineers v. State of Orissa & Ors. (Civil Appeal No. 4934 of 2008), challenge raised by Railways against verdict passed by Orissa High Court with regard to imposition of Entry Tax on Diesel/High Speed Diesel Oil brought by Railways for its consumption was repelled. Case of assessee was that aforesaid verdict stood on a different footing, despite which a Circular dated 16-5-2011 was issued instructing levy of tax on entry of goods into Railway area as well, treating it to be a “local areaâ€. Held: It was very much evident from additional document produced by State as admitted from assessee that its factory was located at Badiyatola which was Ward No. 7 of Municipality, Dongargarh. Insofar as place in question is situated in the “local area” as notified by the Municipality and further since that aspect was not disputed specifically by assessee, it was held that goods were brought by assessee to the “local area” and as such the assessment was finalized accordingly, mulcting Entry Tax.
REFERRED : Senior Divisional Mechanical Engineer v. State of Orissa & Ors. [C.A. No. 4934/2008 Order, dated 7-8-2008], New Delhi Municipal Committee NDMC v. State of Punjab 1977 (7) SCC 339, In Re: The Bill To Amend S. 20 of The Sea Customs Act 1963 AIR 1760, Commissioner of Income-Tax, Bombay v. Scindia Steam Navigation AIR 1961 SC 1633, Budhwari Bazar Vyapari Sangh, M/s. S. Harnaam Singh and Sons, Sakshi Cloths, M/s. Dolly Dresses, Shri Krishna Cloth Stores v. The State of Chhattisgarh, through Secretary, Commercial Tax Department & Others (2016) 92 VST 97 (CG), Commissioner of Sales Tax, M.P. & Ors. v. Cigarette Agencies 2005 (2) MPLJ 25 and Dy. CIT & Ors. v. M/s. Simplex Concrete Piles (India) Limited (2013) 23 STJ 263 (SC) : 2012 TaxPub(DT) 3096 (SC)
FAVOUR : Against the assessee
A.Y. :
IN THE CHHATTISGARH HIGH COURT
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