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2022 (9) TMI 4 - HC - VAT and Sales TaxLevy of Entry Tax - stock transfer price - validity of Equalized List Price (ELP), adopted by the appellant - HELD THAT - As per Section 3(a), entry tax is leviable on an entry in the course of business of a dealer of goods specified in Schedule-II, into each local area for consumption, use or sale therein and such tax shall be paid by every dealer under the VAT Act who has affected the entry of such goods. Section 4 defines the rate at which entry tax to be charged and as per sub-section (1), the entry tax payable by a dealer under this Act shall be charged on his taxable quantum relating to goods specified in Schedule-II and Schedule-III - The appellant has evolved the ELP system for sale in the market throughout the country and the price mentioned in Form F is only the stock transfer price not liable to be treated as the sale price of the goods. As per Section 4 of the Entry Tax Act, the entry tax payable by the dealer under this Act shall be charged on his taxable quantum relating to goods specified in Schedule-II and Scheduled-III, but there is no such provision for charging of entry tax on ELP adopted by the appellant, same is alien to the Entry Tax Act or VAT Act. The respondents/authorities have rightly charged the entry tax on the price mentioned in the stock transfer note/bill as a market value - thus, no question of law much less substantial question of law is involved in this appeal and the appeal is liable to be dismissed. Appeal dismissed.
Issues:
- Appeal against order dismissing appeal under M.P. VAT Act, 2002 related to Entry Tax assessment from 1.4.2013 to 31.3.2014. - Dispute over determination of goods' value for levy of Entry Tax based on Equalized List Price (ELP) vs. stock transfer price. - Appellant's claim for refund based on difference between stock transfer price and ELP. - Interpretation of Entry Tax Act, 1976 and VAT Act definitions regarding taxable quantum, taxable market value, and value of goods. - Contentions on whether ELP can be considered as market value for levy of Entry Tax. - Application of legal principles from previous judgments to the current case. Analysis: 1. The appellant challenged the dismissal of their appeal under the M.P. VAT Act, 2002 regarding Entry Tax assessment for a specific period. The dispute centered around the determination of goods' value for Entry Tax, comparing Equalized List Price (ELP) and stock transfer price. 2. The appellant, a Private Limited Company engaged in the sale of lubricating oil, argued that Entry Tax should be based on ELP, ensuring a uniform sale price across states. They sought a refund based on the difference between stock transfer price and ELP. 3. The Court analyzed the definitions of taxable quantum, taxable market value, and value of goods under the Entry Tax Act and VAT Act to determine the correct basis for Entry Tax calculation. 4. The appellant contended that ELP should be considered the market value for Entry Tax levy, while the respondent argued that ELP was not defined in the relevant Acts, supporting the authorities' decision to charge tax based on stock transfer price. 5. The Court rejected the appellant's argument, emphasizing that ELP was not recognized as a sale price in the Acts, and Entry Tax was chargeable at the time of goods' entry into the local area based on the declared price. 6. Referring to legal principles from previous judgments, the Court upheld the authorities' decision to charge Entry Tax on the stock transfer price, dismissing the appeal and finding no substantial question of law involved in the case.
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