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TMI Blog2006 (11) TMI 554X X X X Extracts X X X X X X X X Extracts X X X X ..... in the local area. In the present case, the language of section 3 read with section 2(1)(b) of the Act is very clear that the Assam Entry Tax Act, 2001, provides for levy of entry tax on entry of specific goods into a local area from another local area or from outside the State only and the same does not provide for levy of entry tax into local area from outside the country and, hence, no entry tax can be levied on entry of specified goods into a local area imported from outside the country. In short, no entry tax can be imposed by the State on the goods imported into a local area from outside the country. In fact, such is not the legislative intent, for, section 3 read with section 2(1)(b) of the AET excludes goods brought into a local area, in Assam from outside the country in the course of import of such goods into the territory of India. In the case at hand, as the entry of the specified goods into a local area of the State is in the course of import into the territory of India, such import is not subject to levy of entry tax under the AET Act. Hence, the imposition of entry tax on the goods, in question, cannot be sustained and is, therefore, set aside and quashed. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nment in respect of such goods as may be specified in such notification, from payment of entry tax on entry of such goods into any local area for consumption or use therein provided that such goods are the exclusive property of such organization or undertaking. (4) The State Government may, by notification in the Official Gazette, add to, delete, amend or otherwise modify the said Schedule and also may very the rates of tax of the goods specified in the Schedule and thereupon the said Schedule shall be deemed to have been amended accordingly. (5) The State Government, if considers it necessary in the public interest so to do, may by notification in the Official Gazette, subject to such conditions and restrictions as it may impose, exempt any importer or class of importers, fully or partially from payment of entry tax on any specified good and the State Government also grant such exemption retrospectively: Provided that the State Government may withdraw any such exemption at any time, as it may think fit and proper. 3. The words entry of goods into a local area is defined by Section 2(1)(b) of the AET Act as under: 2(1)(b). Entry of goods into a local area ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia. Dr. Todi also submits that the entries, in the list, are mere legislative heads and while enacting any legislation, they are subject to constitutional restrictions specifically imposed. Dr. Todi further submits that levy of entry tax, on the import of goods from outside the country, is beyond the legislative competence of the State 'and the same is liable to be' struck down. 8. Controverting the submissions made on behalf of the petitioners, learned Additional Advocate General has submitted that the legislation of entry tax is by virtue of Entry 52 of List II of the Seventh Schedule and this entry is aimed at imposing entry tax on the entry of goods into a local area for consumption, use or sale therein and does not make any distinction, in this regard, between the goods, which are imported from outside country, and the goods, which are imported into the State by virtue of sale or purchase, which takes place by way of inter-State trade or commerce. Such a levy is not impermissible in law. 9. Before entering into the merit of the above submissions made on behalf of the petitioners, it is necessary to take note of what Article 286 of the Constitution of India contai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 53 that Article 286 aims at preventing double taxation of the foreign trade of the country, which is of immense importance to the nation's economy. The double taxation, sought to be avoided, are imposition of excise duty by the Central Government and the imposition of sales tax by the State Government. Such double taxation is avoided by exempting the sales, which take place as export or import, from the levy of sales tax by the States. 12. From a reading of Article 286 of the Constitution, it becomes clear that this article does not permit States to levy tax on the sale or purchase of goods, which takes place in the course of import into, or export out of the territory of India. The restriction, imposed on the State, is, thus, in respect of levy of tax on the sale or purchase of goods, which takes place in the course of import into, or export out of, the territory of India. The power to levy sales tax is derived from Entry 54 of List II of the Seventh Schedule to the Constitution of India; whereas the power to levy entry tax is derived by Entry 52 of the List II of the, Seventh Schedule to the Constitution. Under Entry 54, the point of levy is purchase or sale; but under Ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m outside the State for use, consumption or sale therein. 13. In view of what have been pointed out above, there is no merit in the contention advanced, on behalf of the petitioners, that the State has no power to levy entry tax on the goods imported into any local area from outside the State even if such entry is for the purpose of use, consumption or sale in the local area. 14. However, while reading the definition of entry of goods into a local area as provided by Clause 2(1)(b) of the Assam Entry Tax Act, 2001, it is of paramount importance to note that the expression entry of goods into a local area means entry of goods, as specified in the Schedule, into any local area from any place outside that local area including a place outside the State. It is plain that the words including a place outside the State do not mean to convey outside the country. No wonder, therefore, that while dealing with the word purchase value in Section 2(1)(h) of the Act, no reference has been made to customs and other duties that an importer has to pay for clearance of the goods. 15. Coupled with the above, it is worth noticing that a plain reading of Section 2(1) makes it clear that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fuse to place on the language of the statute the plain and natural meaning, which it must bear, on the ground that it produces a consequence, which could not have been intended by the Legislature. It is only from the language of the statute that the intention of the Legislature must be gathered, for, the Legislature means no more and no less that what it says. It is not permissible for the court to speculate as to what the Legislature must have intended and, then, to twist or bend the language of the statute to make it accord with the presumed intention of the Legislature. 18. In Muralilal Mahabir Prasad v. B.R. Vad 37 STC 77, the Apex Court observed as under: The principle is variously expressed by saying that in fiscal statutes one must have regard to the letter of the law and not to the spirit of the law, that the subject cannot be taxed by inference or analogy, that in taxing Act there is no governing principle to look at and one has simply to go on the Act itself to see whether the tax claimed is that which the statute imposes, that while construing taxing Acts it is not the function of the court to give to the words used a strained and unnatural meaning and that the su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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