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Madras High Court

M/S.Prp Exports Represented By Its ... vs / on 24 June, 2019

Author: Anita Sumanth

Bench: Anita Sumanth

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                           BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

                                              DATED: 24.06.2019

                                                     CORAM:

                             THE HONOURABLE DR.JUSTICE ANITA SUMANTH

                                      W.P.(MD)No.12317 to 12319 of 2010
                                                     and
                                         M.P.(MD)No.1,1 and 1 of 2008

                      M/s.PRP Exports represented by its Partner,
                      S.F.No.296/2B1,
                      Near Veera Kaliyamman Koil,
                      Keelavalavu Village, Melur Taluk,
                      Madurai District.                   ... Petitioner in all petitions

                                                       /Vs./
                      1.The State of TamilNadu,
                        Represented by the Secretary to Government,
                        Commercial Taxes Department &
                                Religious Endowments Department,
                        Fort St.George, Chennai – 9.

                      2.The Commercial Tax Officer,
                        Melur Assessment Circle, Melur, Madurai District.

                      3.The Regional Transport Officer,
                        Madurai North, Madurai.

                      4.The Motor Vehicle Inspector Grade-I,
                        Unit Office, Sivagangai Road,
                        Melur.                            ...Respondents in all petitions


                      COMMON PRAYER:- Writ Petitions - filed under Article 226 of the
                      Constitution of India, praying for the issuance of Writ of Mandamus,
                      directing the Respondents their men, agents, subordinates from



http://www.judis.nic.in
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                      levying and collecting Entry Tax under the provisions of the Tamil
                      Nadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990 from
                      the petitioner for registering Hydraulic Mobile Crane for use in the
                      factory from Escorts Construction Equipment Limited, 219, Sector
                      58   Ballabhgarh-121004, vide invoice No.EX-100028, EX-100027,
                      EX-100045      dated 31.07.2010, dated 31.07.2010 and dated
                      06.09.2010     bearing      Chassis        No.1939323214,        1939323114,
                      1939325816     Engine      No.S433-A23965,              S433-A24330,     S433-
                      A24733, respectively.


                               For Petitioner          : Mr.Sribalaji
                               For Respondents         : Mr.S.Angappan
                                                       Government Advocate
                                                       (in all petitions)



                                                 COMMON ORDER


These writ petitions seek Mandamus, directing the respondents to register the petitioners’ vehicles (Hydraulic Mobile Crane) purchased under three Invoices, dated 31.07.2010, 31.07.2010 and 06.09.2010, respectively, 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’). http://www.judis.nic.in 3

2. The petitioner has raised several challenges to the levy of entry tax, per se and the writ petitions are styled more as a writ of declaration though, in conclusion, only mandamus is sought.

3. The levy of entry tax has been the subject of challenge on various grounds and the Supreme Court, in a judgment rendered by a Nine Judge Bench 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.

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5. Liberty is granted to the respondents 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 interim injunction on 29.09.2010 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 assessments, 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 & Religious Endowments Department, Fort St.George, Chennai – 9.

2.The Commercial Tax Officer, Melur Assessment Circle, Melur, Madurai District.

3.The Regional Transport Officer, Madurai North, Madurai.

4.The Motor Vehicle Inspector Grade-I, Unit Office, Sivagangai Road, Melur. http://www.judis.nic.in 5 Dr.ANITA SUMANTH, J.

sm Common Order made in W.P.(MD)No.12317 to 12319 of 2010 Dated:

24.06.2019 http://www.judis.nic.in