2013 (2) TMI 662 - HC - VAT and Sales Tax

Summary

Issues Involved:
The issues involved in the judgment are the imposition of entry tax on goods purchased in the course of inter-State trade and the liability to pay entry tax on goods imported from outside the country.

Imposition of Entry Tax on Inter-State Trade:
The petitioner challenged the assessment order imposing entry tax on the purchase of SKO in the course of inter-State trade for the year 2003-04. The Deputy Commissioner (Appeals) allowed the appeal, setting aside the levy of entry tax. The Revenue then appealed to the Rajasthan Tax Board, which rejected the appeal. The Revenue argued that entry tax is applicable as soon as goods are brought within the local area, even if imported from outside India. However, the High Court held that the goods imported fell under section 5(2) of the Central Sales Tax Act, 1956, and no liability of entry tax can be imposed in such cases. The Court found no error of law in the decisions of the lower appellate authorities and dismissed the revision petition.

Liability to Pay Entry Tax on Imported Goods:
The Revenue contended that entry tax is a compensatory measure for the loss of revenue to the State and should be applicable even on goods imported from outside India. However, the High Court held that entry tax cannot be levied on goods imported from outside the country as per the provisions of the Central Sales Tax Act. The Court found no legal error in the decisions of the Deputy Commissioner (Appeals) and the Tax Board, as the goods in question were imported and not subject to entry tax. Therefore, the revision petition was dismissed.