Madras High Court
Mr.S.Mariappan vs The State Of Tamil Nadu on 16 September, 2021
Author: S.M.Subramaniam
Bench: S.M.Subramaniam
W.P.Nos.8970, 10374, 10376 of 2009 and 2410 of 2010
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Dated: 16.09.2021
CORAM:
THE HON'BLE MR. JUSTICE S.M.SUBRAMANIAM
W.P.Nos.8970, 10374, 10376 of 2009 and 2410 of 2010
and
M.P.Nos.1+1+1 of 2009 in W.P.Nos.8970, 10374, 10376 of 2009
and M.P.No.1 of 2010 in W.P.No.2410 of 2010
[Items Nos.1, 2, 3 & 5]
W.P.No.8970 of 2009
Mr.S.Mariappan .. Petitioner
..Vs..
1.The State of Tamil Nadu,
Rep.by its Secretary,
Home (Transport) Department,
Fort St. George, Chennai – 600 009.
2. The Commercial Tax Officer,
Alawarpet, Chennai.
3.The Regional Transport Officer,
Chennai (South), Chennai.
4. The Motor Vehicle Inspector,
Chennai (South), Chennai. .. Respondents
PRAYER: Writ Petition is filed under Article 226 of the Constitution of
India, praying to issue a Writ of Mandamus, forbearing the respondents
and their subordinates from demanding or collecting entry tax on the
petitioners imported Toyota Motor Car bearing Chassis No.JZE 119-
6019679 to be registered and assign new registration mark by the 3rd
and 4th respondents.
https://www.mhc.tn.gov.in/judis/
1/10
W.P.Nos.8970, 10374, 10376 of 2009 and 2410 of 2010
W.P.No.10374 of 2009
M.Basheer Mohamed .. Petitioner
..Vs..
1.The State of Tamil Nadu,
Rep.by its Secretary,
Home (Transport) Department,
Fort St. George, Chennai – 600 009.
2. The Commercial Tax Officer,
T.Nagar (South), Chennai.
3.The Regional Transport Officer,
Chennai (West), Chennai.
4. The Motor Vehicle Inspector,
Chennai (West), Chennai. .. Respondents
PRAYER: Writ Petition is filed under Article 226 of the Constitution of
India, praying to issue a Writ of Mandamus, forbearing the respondents
and their subordinates from demanding or collecting entry tax on the
petitioners used Toyota Prado Motor Car bearing Chassis No.JTEBY 29
JXO 0010474 and Engine No.1KZ 1053192 to be registered and assign
new registration mark by the 3rd and 4th respondents.
W.P.No.10376 of 2009
Abdul Hameed .. Petitioner
..Vs..
1.The State of Tamil Nadu,
Rep.by its Secretary,
Home (Transport) Department,
Fort St. George, Chennai – 600 009.
https://www.mhc.tn.gov.in/judis/
2/10
W.P.Nos.8970, 10374, 10376 of 2009 and 2410 of 2010
2. The Commercial Tax Officer,
Saidapet, Chennai.
3.The Regional Transport Officer,
Chennai (West), Chennai.
4. The Motor Vehicle Inspector,
Chennai (West), Chennai. .. Respondents
PRAYER: Writ Petition is filed under Article 226 of the Constitution of
India, praying to issue a Writ of Mandamus, forbearing the respondents
and their subordinates from demanding or collecting entry tax on the
petitioners imported used Toyota land crusier Motor Car bearing Chassis
No.JTEHCO5J604020009 and Engine No.1HD 0249734 to be registered
and assign new registration mark by the 3rd and 4th respondents.
W.P.No.2410 of 2010
M/s.S.K.P.Engineering College,
No.17-A, Jagadeeswaran Street,
T.Nagar, Chennai – 600 017. .. Petitioner
..Vs..
1.The State of Tamil Nadu,
Rep.by its Secretary,
Home (Transport) Department,
Fort St. George, Chennai – 600 009.
2. The Assistant Commissioner (CT),
T.Nagar Assessment Circle, Chennai.
3.The Regional Transport Officer,
Chennai (West), Chennai.
4. The Motor Vehicle Inspector,
Chennai (West), Chennai. .. Respondents
https://www.mhc.tn.gov.in/judis/
3/10
W.P.Nos.8970, 10374, 10376 of 2009 and 2410 of 2010
PRAYER: Writ Petition is filed under Article 226 of the Constitution of
India, praying to issue a Writ of Mandamus, forbearing the respondents
and their subordinates from demanding or collecting entry tax on the
petitioners used Toyota land cruiser Motor Vehicle bearing Chassis No.
JTEHC05J704022058 and Engine No.1HD0256479 to be registered and
assign new registration mark by the 3rd and 4th respondents
For Petitioner : Mr.V.Santharam
in all WPs. for M/s.B.Satish Sundar
For Respondents : Mr.V.Veluchamy
in all WPs. Government Advocate
COMMON ORDER
All these Writ Petitions are filed to forbear the respondents from demanding and collecting entry tax on the vehicles purchased by the petitioners. The respective vehicles purchased by the petitioners in all these Writ Petitions were imported from other countries. They have contended that import duty to the Customs Department had already been paid. While taking the vehicle for registration, the Regional Transport Officers concerned, demanded entry tax and thus, the petitioners are constrained to move the present Writ Petitions.
2. The validity of provisions of the Entry Tax Act was challenged under the Tamil Nadu Tax on Entry of Goods into Local Areas Act, 2001 and the issue went up to the Hon'ble Supreme Court of India and the validity of the Act was upheld by the Courts. https://www.mhc.tn.gov.in/judis/ 4/10 W.P.Nos.8970, 10374, 10376 of 2009 and 2410 of 2010
3. The Hon'ble Supreme Court in clear terms held that the State is empowered to demand and collect Entry Tax in the case of State of Kerala and others vs. Fr.William Fernandez reported in [2018] 57 GSTR 6 (SC). Thus, the issue raised in these Writ Petitions are no more res-integra and the petitioners are liable to pay Entry tax as demanded by the respondents. In some cases, interim orders were granted on condition to pay part amount of entry tax and in some cases, interim orders are granted without any such conditions. Therefore, the respondent/Commercial Tax Department, is duty bound to calculate the arrears of Entry tax to be paid by the respective petitioners and calculation sheet / demand notice is to be issued enabling such petitioners to pay the Entry Tax.
4. It is brought to the notice of this Court that even in respect of the writ petitions already dismissed by this Court, based on the judgment of the Hon'ble Supreme Court, the Commercial Tax Department issued a circular No. 20/2021 dated 01.09.2021. As per the circular, all the Assessing Officers are instructed to collect the outstanding Entry Tax in respect of the dismissed cases, immediately. The Joint Commissioner concerned are directed to monitor the work of collection of Entry Tax https://www.mhc.tn.gov.in/judis/ 5/10 W.P.Nos.8970, 10374, 10376 of 2009 and 2410 of 2010 and send the compliance report in respect of their Division by 10 th of every month. In respect of cases, where the Entry tax is not realisable, the Joint Commissioner concerned should explore all possible legal ways to realise the Government dues and report compliance. The instructions issued are directed to be followed scrupulously.
5. Mr.V.S.Velavan, State Tax Officer / Investigation Wing, made a submission that pursuant to the consistent orders of this Court in the matter of recovery of Entry Tax, the department could able to collect more than a sum of Rs.5 Crores, as of now. However, in respect of the Writ Petitions already dismissed, the Entry tax dues are yet to be collected by the Department. Pursuant to the circular issued by the Commissioner, actions are taken to collect the arrears. This Court is of the considered opinion that a little effort in dealing with Entry tax issue, an amount more than Rs.5 Crores is collected in a short span of time. If the department is consistent in pursuing the collection of tax, then undoubtedly, the State will be in a position to collect substantial revenue dues in the interest of public at large. The efficiency level in the Department are to be improved only by consistent monitoring and functioning of the Executives. Consistent actions in the matter of https://www.mhc.tn.gov.in/judis/ 6/10 W.P.Nos.8970, 10374, 10376 of 2009 and 2410 of 2010 collection of tax is of paramount importance. It is the duty mandated under the provisions of the Act and the failure amounts to dereliction of duty. Thus, the Executives are duty bound to ensure that the collections are made and disputes are to be pursued and settled at the earliest possible, in order to honor the Constitutional principles.
6. As far as the Writ petitions on hand are concerned, the petitioners had imported various kinds of vehicles from different Countries and they are liable to pay the Entry Tax under the provisions of the Act and, therefore, swift action is required as several years lapsed and already Revenue suffered loss for many years. Thus, any further delay would cause prejudice to the interest of the Revenue.
7. In view of the facts and circumstances, the following orders are passed:
(i) The respondents/Commercial Tax Department Officials are directed to issue calculation sheets/demand notices to all the petitioners and serve the same to the petitioners within a period of one week from the date of receipt of a copy of this order. On receipt of such notices, the petitioners are directed to pay the arrears of Entry Tax dues within a https://www.mhc.tn.gov.in/judis/ 7/10 W.P.Nos.8970, 10374, 10376 of 2009 and 2410 of 2010 period of one week from the date of receipt of the notice from the Department.
(ii) In the event of failure on the part of the petitioners in settling the Entry Tax dues, then the respondents are directed to initiate immediate action for recovery of revenue dues by following the procedures as contemplated under the statute.
8. With these directions, all the Writ petitions stand disposed of. No costs. Consequently, connected miscellaneous petitions are closed.
9. Post the matter on 04.10.2021, for 'Reporting Compliance'.
16.09.2021 Speaking / Non-Speaking order Index: Yes/No. Internet: Yes pns/ars (Note: Issue Order copy on 21.09.2021) https://www.mhc.tn.gov.in/judis/ 8/10 W.P.Nos.8970, 10374, 10376 of 2009 and 2410 of 2010 To
1.The Secretary, State of Tamil Nadu, Home (Transport) Department, Fort St. George, Chennai – 600 009.
2. The Commercial Tax Officer, Alawarpet, Chennai.
3.The Regional Transport Officer, Chennai (South), Chennai.
4. The Motor Vehicle Inspector, Chennai (South), Chennai.
5. The Commercial Tax Officer, T.Nagar (South), Chennai.
6.The Regional Transport Officer, Chennai (West), Chennai.
7. The Motor Vehicle Inspector, Chennai (West), Chennai.
8. The Commercial Tax Officer, Saidapet, Chennai.
9. The Assistant Commissioner (CT), T.Nagar Assessment Circle, Chennai.
https://www.mhc.tn.gov.in/judis/ 9/10 W.P.Nos.8970, 10374, 10376 of 2009 and 2410 of 2010 S.M.SUBRAMANIAM, J., ars W.P.Nos.8970, 10374, 10376 of 2009 and 2410 of 2010 16.09.2021 https://www.mhc.tn.gov.in/judis/ 10/10