2023 (4) TMI 1264 - HC - VAT and Sales Tax

Levy of Entry Tax - HELD THAT - The issue relating to the payment of entry tax is no longer res-integra. It is covered by a judgment of the Division Bench of this Court in SRI BALAKRISHNA TRANSPORT VERSUS COMMERCIAL TAX OFFICER, TAMBARAM I ASSESSMENT CIRCLE, CHENNAI 2009 (2) TMI 787 - MADRAS HIGH COURT where it was held that Since there is no provision in the Entry Tax Act for assessing a person who failed to furnish the return under section 7 of the Act, the only course open to the assessing authority was to levy penalty not exceeding twice the amount of tax due as provided under section 15(1) of the Act. In view of such settled position of law, where this Court held that the demand notice is not valid, since there is no specific provision for assessment of a person, who has not filed return, these Writ Appeals stand allowed.

Summary

Issues involved:
The issues involved in the judgment are the challenge to a common order of the Writ Court dated 01.03.2022 in W.P. (MD) Nos. 3796, 3800, and 3787 of 2022 regarding the demand notices for entry tax.

Summary:

The Writ Appeals were filed challenging the common order of the Writ Court pertaining to the Demand Notices dated 30.09.2019, 30.12.2020, and 30.12.2020 demanding entry tax. The issue of payment of entry tax had been previously addressed in a judgment of the Division Bench of the Court in Sri Balakrishna Transport Vs. Commercial Tax Officer, Tambaram I Assessment Circle, Chennai. The Court reiterated the stance taken in the aforementioned judgment, emphasizing that the demand notice was deemed invalid due to the absence of a specific provision for assessing individuals who had not filed a return. Consequently, the Writ Appeals were allowed, the order of the Writ Court was set aside, and the impugned Demand Notices were quashed. No costs were awarded in this matter, and the connected miscellaneous petition was closed.