Gujarat High Court
Tractors And Farm Equipment Ltd & vs State Of Gujarat & on 5 February, 2016
Author: Akil Kureshi
Bench: Akil Kureshi, Mohinder Pal
C/SCA/1560/2016 ORDER
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
SPECIAL CIVIL APPLICATION NO. 1560 of 2016
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TRACTORS AND FARM EQUIPMENT LTD & 1....Petitioner(s)
Versus
STATE OF GUJARAT & 1....Respondent(s)
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Appearance:
UCHIT N SHETH, ADVOCATE for the Petitioner(s) No. 1 - 2
ADVANCE COPY SERVED TO GP/PP for the Respondent(s) No. 1
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CORAM: HONOURABLE MR.JUSTICE AKIL KURESHI
and
HONOURABLE MR.JUSTICE MOHINDER PAL
Date : 05/02/2016
ORAL ORDER
(PER : HONOURABLE MR.JUSTICE AKIL KURESHI)
1. Petitioners are engaged in manufacturing and selling tractors. The manufacturing units being outside the State of Gujarat, such product is brought into the State at the time of sale. Petitioners were charged value added tax at the rate of 5% as prescribed under the VAT Act. The Commercial Tax Official, however, by the impugned order dated 4.1.2016 has raised additional entry tax demand on such vehicles brought within the State and has also levied penalty on the ground that the tractors are motor vehicles and therefore, fall within the definition of specified goods.
2. Counsel for the petitioners submitted that during the regime of sales tax as well as after introduction of Value Page 1 of 2 HC-NIC Page 1 of 2 Created On Thu Feb 11 00:39:13 IST 2016 C/SCA/1560/2016 ORDER Added Tax replacing Sales Tax also, the tractors have never been treated as Motor Vehicles for the purpose of entry tax under the Gujarat Tax On Entry Of Specified Goods Into Local Areas Act, 2001. He relied on the decision of the Division Bench of this Court in case of Eagle Corporation Pvt. Ltd. V/s. State of Gujarat and Others reported in (2007) 6 VST 560 (Guj.) in which in the context of the constitutional vires of the Gujarat Tax On Entry Of Specified Goods Into Local Areas Act, 2001, it was noted that the entry tax would not be higher than the value added tax on sale within the State. On such basis, the vires of the Act was upheld.
Notice returnable on 26th February, 2016. Impugned order shall stand stayed.
(AKIL KURESHI, J.) (MOHINDER PAL, J.) ashish Page 2 of 2 HC-NIC Page 2 of 2 Created On Thu Feb 11 00:39:13 IST 2016