9911796707
TMI Blog2003 (1) TMI 676X X X X Extracts X X X X X X X X Extracts X X X X ..... s an item taxable under the First Schedule to the Kerala General Sales Tax Act at the point of first sale in the State. According to the petitioner, the goods transported are covered by sale bill and other documents and the second respondent has no case to the contrary. The petitioner relies on Notification S.R.O. No. 590 of 1996 by which the Government of Kerala has granted exemption from entry tax liability on goods brought by registered dealers on which they pay sales tax in Kerala. They have a further case that there is no proper assessment and demand of entry tax and the tax demanded by the second respondent vide exhibit P4 notice is arbitrary and untenable. 2. I have heard counsel for the petitioner and also the Government Pleader. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e contention of counsel for the petitioner that there was exemption from entry tax under S.R.O. No. 590 of 1996 on dealers registered under the Kerala General Sales Tax and the Central Sales Tax Acts for goods brought to Kerala for resale by them is correct. However, the said notification is modified by S.R.O. No. 949 of 2002 dated November 21, 2002 produced by the petitioner as exhibit P5 whereunder the earlier notification is modified withdrawing the exemption in respect of goods, namely, marble slabs, marble tiles, Cudappa stones and slabs, granite slabs and tiles and generators specified in the Schedule to the Entry Tax Act. In fact, it is specifically mentioned in exhibit P4 notice that the demand of entry tax is by virtue of withdrawa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yable under the said Act shall be reduced by the amount of tax paid under this Act. " It is clear from the operation of section 4 that once the item brought in respect of which entry tax is paid is sold in Kerala, the dealer who is liable to pay sales tax need pay so much of the sales tax after reducing the entry tax paid on the very same item. In other words, the payment of entry tax goes to reduce the petitioner's sales tax liability to the extent of the amount of entry tax paid. The payment of sales tax is essentially governed by final determination in the form of assessment and entry tax paid goes only as a credit towards liability for sales tax or in other words, sales tax is demanded after reducing the entry tax paid by the petition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing officer and get an order of assessment and the demand of entry tax at the check-post will be substituted by the demand of entry tax assessed by the officer. As already stated, since payment of entry tax at the check-post by registered dealers takes the character of sales tax paid in advance no prudent businessman liable to pay sales tax on same goods will agitate for an order of assessment demanding entry tax as the said order does not have any lasting adverse effect on the dealer. He need not raise any objection at all but to make payment, and take credit of the payment in the sales tax return filed by him. Though it is not very clear from section 4 as to when the credit of entry tax is to be claimed by the registered dealer towards s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kerala on which entry tax is paid at the sales tax check-post or at any other point in Kerala shall be entitled to take credit of such payment towards sales tax payable for same class of goods in the monthly returns filed in the following month. In view of this position, the payment of entry tax demanded on the basis of exhibit P4 notice is to be fully taken credit by the petitioner while paying sales tax on the turnover of marble on or before 10th of the following month, and therefore the petitioner's grievance is limited to advance payment of sales tax in the form of entry tax in respect of the consignment. Therefore, I do not think there is substantial grievance for the petitioner to challenge exhibit P4 because collection is in effect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t pay entry tax as they are exempt from paying the entry tax. There can be no doubt that the petitioner also ceases to have any liability for entry tax when such goods are sold in Kerala and in respect of which sales tax is paid after adjusting the payment of entry tax made. Therefore the limited grievance is advance collection of sales tax in the form of entry tax in respect of the commodities referred to in S.R.O. No. 949 of 2002 while there is no need to collect advance sales tax in the form of entry tax in respect of other goods covered by the Schedule. What is referred to in section 12 is exemption for specified class of importers which obviously can be class of persons dealing with specified class of goods. So for as items covered by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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