2021 (8) TMI 407 - HC - VAT and Sales Tax

Seeking forbearance on respondents and their subordinates from demanding or collecting Entry Tax in respect of the petitioner's Imported vehicle - ROLLS ROYCE GHOST FK42 RHD, Diamond Colour - assignment of new registration mark - HELD THAT - This Court is of the considered view that it is the constitutional duty of the High Court to contribute for the development of the constitutional principles as the Indian Constitution is not a mere law but a visionary document. The 'Obiter dicta' offered in various judgments become law for the purpose of development and to make the constitutional rights more vibrant to reach the constitutional goals. Therefore, the petitioner cannot say that his case is to be dismissed in a simple manner, by way of allowing the withdrawal of the writ petition, or by dismissing on the ground that the issues have already been settled. The learned counsel for the petitioner made a submission that the petitioner is willing to withdraw the writ petition. Even in such circumstances, the Court has to consider the circumstances and conduct of the petitioner and pass appropriate orders in order to avoid such unwarranted circumstances as well as to avoid unnecessary multiplicity of litigations in future. Thus, this Court though fit to pass orders, making the citizen aware, for the benefit of the public at large and to remind that the citizen are bound to respect the fundamental duties enunciated under the Constitution of India. The petitioner is directed to pay the balance arrears of Entry Tax of ₹ 30,30,757.00, as demanded by the respondents, within a period of 48 hours - Petition dismissed.

Issues Involved:
1. Demand and collection of Entry Tax on imported vehicles.
2. Petitioner's compliance with procedural requirements for filing affidavits.
3. Fundamental duties of citizens in relation to tax obligations.
4. Role of "Obiter dicta" in judicial decisions.

Issue-wise Detailed Analysis:

1. Demand and Collection of Entry Tax on Imported Vehicles:
The petitioner contested the demand for Entry Tax on his imported Rolls Royce Ghost FK42 RHD, arguing that having paid customs duty, no further tax should be levied. The petitioner sought an injunction to prevent the collection of Entry Tax. However, the court referenced the Supreme Court's ruling in *State of Kerala v. Fr. William Fernandez* [2018] 57 GSTR 6 (SC), which established that Entry Tax is leviable on imported vehicles. The court emphasized that no court can compel the government to grant administrative waivers on tax matters, as it is a policy decision.

2. Petitioner's Compliance with Procedural Requirements for Filing Affidavits:
The court noted that the petitioner failed to provide sufficient personal identification details in his affidavit, such as profession and other connected details, which is required under both the erstwhile and current Madras High Court Writ Rules, 2021. The court highlighted that this omission amounts to suppression of facts.

3. Fundamental Duties of Citizens in Relation to Tax Obligations:
The court underscored the importance of citizens fulfilling their tax obligations, especially when utilizing public infrastructure funded by taxpayer money. It criticized the trend of affluent individuals seeking to avoid taxes through litigation, thereby causing revenue loss and affecting public interest. The court reminded citizens of their fundamental duties under Article 51A of the Constitution, emphasizing that rights and duties are inseparable.

4. Role of "Obiter dicta" in Judicial Decisions:
The court elaborated on the significance of "Obiter dicta" in judicial decisions, stating that such observations, though not binding, contribute to the development of constitutional principles and legal doctrines. The court cited various judgments to explain the difference between "Ratio decidendi" and "Obiter dicta" and stressed that the latter plays a crucial role in the evolution of law and constitutional interpretation.

Decision:
The court rejected the relief sought by the petitioner and directed him to pay the balance arrears of Entry Tax amounting to ?30,30,757 within 48 hours. Additionally, the court instructed the Registry of the High Court to ensure compliance with affidavit requirements as per the Madras High Court Writ Rules, 2021, and to take appropriate action against any lapses by officials.

Conclusion:
The writ petition was disposed of with no costs, and the petitioner was reminded of his fundamental duties and the importance of adhering to procedural requirements in legal filings. The court's decision reinforced the principle that imported vehicles are subject to Entry Tax and emphasized the broader constitutional context of citizens' tax obligations and judicial observations.

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