2021 (7) TMI 599 - HC - VAT and Sales Tax

Levy of entry tax - competence to collect entry tax - new Rolls Royce Ghost Motor Car Vehicle bearing chassis - HELD THAT - Filing a writ petition, avoiding payment of Entry tax and keeping the writ petition pending for about nine years, can never be appreciated and it is not made clear even now, whether the Entry tax as applicable has been paid by the petitioner or not. On account of efflux of time, the learned counsel for the petitioner also has not stated anything regarding this. It is no more res-integra and the Hon'ble Supreme Court of India in the case of STATE OF KERALA AND OTHERS VERSUS FR. WILLIAM FERNANDEZ ETC. ETC. 2017 (10) TMI 491 - SUPREME COURT ruled that the respondents are competent to collect Entry Tax and therefore, the petitioner herein is also liable to pay the Entry Tax as per the claim made. he petitioner is bound to pay the Entry tax for the Rolls Royce Ghost Motor Car Vehicle bearing chassis number SCA664S07CUH16754, and Engine number 90430224, which is imported from England. Accordingly, the petitioner is directed to pay the Entry tax as demanded by the respondents within a period of two weeks from the date of receipt of a copy of this order, by adjusting 20% of Entry tax as ordered by this Court in the interim order dated 17.07.2012, if already paid - Petition dismissed.

Summary

Issues:
1. Relief sought to for bear the respondents from demanding or collecting entry tax on an imported vehicle.
2. Contention regarding the imposition of extraordinary entry tax on the imported vehicle.
3. Petitioner's occupation not disclosed in the affidavit.
4. Failure to pay entry tax for the imported prestigious car.
5. Importance of taxation in the nation's economy.
6. Expectation of timely tax payment from individuals of stature.
7. Tax evasion by individuals with large-scale fan groups.
8. Constitutional goal of social justice and tax compliance.
9. Directive principles of the Constitution regarding tax payment.
10. Encouraging lawful behavior and tax compliance among citizens.
11. Philosophical perspective on wealth accumulation and tax payment.
12. Importance of tax payment for achieving social justice.
13. Precedent regarding the competence of authorities to collect entry tax.
14. Direction to pay entry tax within a specified timeframe or face further actions.
15. Dismissal of the writ petition with a cost imposed for Covid-19 relief fund.

Analysis:

1. The petitioner sought relief from the court to prevent the respondents from demanding entry tax on an imported Rolls Royce Ghost Motor Car. The petitioner imported the vehicle from England and paid the import duty to the Customs Department. However, the respondents required the petitioner to obtain a certificate stating no entry tax is payable, which the petitioner contested as an extraordinary imposition.

2. The court noted the petitioner's failure to disclose his occupation in the affidavit, despite being identified as a reputed Cine Actor. The court emphasized the importance of tax compliance, especially from individuals of stature, and criticized the petitioner for evading entry tax on the prestigious car imported from England.

3. Highlighting the significance of taxation in the nation's economy, the court stressed that tax is a mandatory contribution essential for social welfare projects, infrastructure development, security, and other governmental functions. The court expressed disappointment in the petitioner's actions, given his large fan following and influence as a public figure.

4. The judgment delved into the constitutional goal of social justice and emphasized the need for individuals, especially those with significant wealth, to pay taxes promptly and act as role models in society. The court cited Directive Principles of the Constitution related to minimizing income inequalities and promoting tax compliance for achieving societal equality.

5. The court underscored the importance of encouraging lawful behavior and tax compliance among citizens, highlighting that failure to pay taxes by affluent individuals could hinder the nation's progress towards constitutional goals. The judgment urged the petitioner and others in similar positions to fulfill their tax obligations promptly to contribute to social justice.

6. From a philosophical perspective, the court discussed the futility of wealth accumulation without contributing to society through tax payments. The judgment criticized the petitioner for not respecting his fans who supported his career financially and emphasized the ethical responsibility of affluent individuals to pay taxes diligently.

7. The court referred to a precedent where the Supreme Court ruled on the competence of authorities to collect entry tax, establishing the petitioner's liability to pay the entry tax for the imported vehicle. The judgment directed the petitioner to pay the entry tax within a specified period, failing which further actions for recovery would be initiated.

8. In conclusion, the writ petition was dismissed, and a cost was imposed on the petitioner for the Chief Minister's Covid-19 Public Relief Fund. The judgment emphasized the importance of tax compliance, social justice, and the ethical responsibility of affluent individuals to contribute to the nation's welfare through timely tax payments.