2015 (4) TMI 249 - HC - VAT and Sales Tax

Validity of the Himachal Pradesh Tax on Entry of Goods into Local Area Act, 2010 - held that - Court has already taken note of the fact that the matter is pending before the apex Court, which involves identical issues and matters were adjourned till 12th August, 2013, in terms of order dated 12th June, 2013, passed by this Court - it is proper to dispose of these writ petitions by providing that all the writ petitions shall abide by the judgment of the apex Court read with the interim orders, referred to above. It is made clear that the writ petitioners/writ respondents are at liberty to lay motion in terms of the apex Court judgment, if need arises.

Summary

Issues involved:
1. Deferral of hearing due to pending matters before the apex Court
2. Interim orders regarding payment of bank guarantee and refund of entry tax

Analysis:
1. The judgment of the High Court of Himachal Pradesh involved the deferral of the hearing of writ petitions due to similar issues pending before the apex Court. The learned counsel for the parties requested the deferral, and it was decided that the interim orders already passed in previous cases would be made absolute. The court directed that if the apex Court's decision goes against the petitioners, they would have to pay the bank guarantee amount with interest. Conversely, if the decision favors the petitioners, the State would have to refund 1/3rd of the amount deposited by the petitioners in cash with interest. The refund of the entry tax deposited by the petitioners in cases related to entry tax of vehicles was also mandated.

2. The judgment referred to interim orders passed in previous cases related to entry tax. The court reproduced an interim order dated 20.7.2010, which deferred the final hearing due to similar issues pending before the Supreme Court. The order mentioned the constitutional validity of the Himachal Pradesh Tax on Entry of Goods into Local Area Act, 2010 being challenged. It directed that the petitioner needed to pay only 1/3rd of the assessed amount, with the rest to be secured. The amount paid was to be treated as a deposit until the final disposal of the matter, with refund obligations specified for both the State and the assessee based on the final outcome. Another interim order dated 22.1.2013 related to entry tax on vehicles, allowing the registration of a vehicle upon depositing 1/3rd of the entry tax, subject to the result of the writ petition. The judgment highlighted that the matters were pending before the apex Court, and the writ petitions were disposed of with a direction to abide by the apex Court's judgment and the interim orders mentioned earlier.

This detailed analysis covers the deferral of the hearing, interim orders regarding payment obligations, and the disposal of the writ petitions in light of pending matters before the apex Court.