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[Cites 3, Cited by 0]

Madras High Court

M/S.Prp Exports vs The State Of Tamilnadu on 24 June, 2019

Author: Anita Sumanth

Bench: Anita Sumanth

                                                         1


                           BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

                                               DATED: 24.06.2019

                                                    CORAM:

                             THE HONOURABLE DR.JUSTICE ANITA SUMANTH

                                      W.P.(MD)No.2245 and 2246 of 2008
                                                     and
                                          M.P.(MD)No.1 and 1 of 2008

                      M/s.PRP Exports,
                      Therkutheru Village, Melur Taluk,
                      Madurai District, represented by its
                      Managing Partner.                       ... Petitioner in both petitions

                                                     Vs.
                      1.The State of TamilNadu,
                        Represented by the Secretary to Government,
                        Commercial Taxes Department,
                        Chepauk, Chennai – 600005.

                      2.The Deputy Commissioner Tax Officer,
                        Melur Assessment Circle, Melur.

                      3.The Motor Vehicle Inspector,
                        Unit Office, Sivagangai Road,
                        Melur, Madurai District.             ...Respondents in both petitions



                      COMMON PRAYER:- Writ Petitions - filed under Article 226 of the
                      Constitution of India, praying for the issuance of a Writ of
                      Mandamus, directing the respondents and/or their subordinates to
                      register the petitioner's vehicle purchased under invoice Nos.
                      EX/70256,    EX/70255,    both    dated    26.02.2008,     chassis   nos.
                      1937253821     and   1937253721,       Engine   Nos.S433-097231       and



http://www.judis.nic.in
                                                         2


                      S433-096691 without collecting any Entry Tax under the provisions
                      of the Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas
                      Act, 1990.


                                For Petitioner     : Mr.Sri Balaji
                                For Respondents    : Mrs.J.Padmavathy Devi
                                                   Special Government Pleader
                                                   (in both petitions)



                                                 COMMON ORDER


These two writ petitions seek Mandamus, directing the respondents to register the petitioners’ vehicle (Hydraulic Mobile Cranes) purchased under two Invoices, both dated 26.02.2008, without collecting entry tax under the provisions of the Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990 (in short ‘Act’).

2. The petitioner has raised several challenges to the levy of entry tax, perse and the writ petition is styled more as a writ of declaration though, in conclusion, only a mandamus is sought. http://www.judis.nic.in 3

3. The levy of entry tax has been the subject of challenge on various grounds and the Supreme Court, in the Nine Bench Judgment in the case of Jindal Stainless Limited and another vs. State of Haryana and others [(2017) 12 STC 1] has settled most of the issues raised barring two relating to (i) whether the levies satisfy the test of whether the tax burden on imported goods and goods produced legally is not discriminatory but equal and (ii) whether the entire state could be notified as a local area.

4. Be that as it may, there can be no direction issued to the statutory authorities not to make an assessment, although any assessment framed would have to be in accordance with the provisions of the Act. Thus, these Writ Petitions are dismissed with no order as to costs.

5. Liberty is granted to the respondent to proceed with assessment strictly in line with the judgement of the Supreme Court in Jindal Stainless Steel (supra). The petitioner has been granted an ad-interim injunction on 12.08.2008 http://www.judis.nic.in 4 DR.ANITA SUMANTH, J.

sm conditional upon the petitioner remitting 15% of the tax in each case. The petitioner states that this order has been complied with. The refund of this amount shall be subject to the assessment, as and when completed. Consequently, connected Miscellaneous Petitions are closed.

24.06.2019 Index :Yes/No Internet: Yes/No sm To

1.The Secretary to Government, Commercial Taxes Department, Chepauk, Chennai – 600005.

2.The Deputy Commissioner Tax Officer, Melur Assessment Circle, Melur.

3.The Motor Vehicle Inspector, Unit Office, Sivagangai Road, Melur, Madurai District.

Common Order made in W.P.(MD)No.2245 and 2246 of 2008 http://www.judis.nic.in