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TMI Blog2009 (9) TMI 883X X X X Extracts X X X X X X X X Extracts X X X X ..... ss tax and surcharge under the OST Act allegedly collected by the petitioner-firm, which is strenuously denied by the petitioner. The facts leading to the present writ applications are that the petitioner who is engaged in a business of selling two-wheelers, three-wheelers, spares and accessories, filed its returns under the OST Act as well as the Orissa Entry Tax Act (in short, "the OET Act") based upon its books of account which is claimed to be maintained truly and correctly in course of its business. The petitioner had purchased two-wheelers, three-wheelers as well as spares and accessories from outside the State of Orissa and the petitioner paid the entry tax at 12 per cent. since the items in question were "scheduled goods" mentioned in Part III of the Schedule appended to the OET Act. The learned counsel for the petitioner submitted that the leviability of the entry tax was made in accordance with section 3(3) of the OET Act. He submitted that the petitioner is entitled to the benefit of reduction of the tax liability in consonance with section 4 of the OET Act and since the petitioner had paid entry tax at the point of entry of the vehicles into the State of Orissa, in te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nter-State purchase Purchase of vehicles Purchase of spares and accessories Entry tax paid on the purchase of vehicles @ 12% 2000-01 Rs. 16,46,74,262.89 Rs. 11,59,30,588.66 Rs. 26,59,579.38 Rs. 1,39,11,670.30 2001-02 Rs. 12,43,44,878.73 Rs. 12,22,15,344.81 Rs. 21,29,533.92 Rs. 1,46,65,842.05 2002-03 Rs. 14,08,69,092.35 Rs. 13,84,04,053.21 Rs. 24,65,039.14 Rs. 1,66,08,488.00 The learned counsel further submitted that it computed its sales tax liability and submitted returns pertaining to the gross sale of the vehicles in the following manner: Assess-ment years Sale of gross value of vehicle sales tax due thereon Set-off of entry tax paid Balance tax payable/paid 2000-01 Rs. 12,87,35,376.73 Rs. 1,54,48,245.09 Rs. 1,39,14,908 Rs. 15,33,334 2001-02 Rs. 13,09,16,495.06 Rs. 1,57,09,977.64 Rs. 1,46,68,267 Rs. 10,41,712 2002-03 Rs. 15,04,86,067.07 Rs. 1,80,58,328.00 Rs. 1,66,08,488 Rs. 14,49,840 It is also stated by the learned counsel for the petitioner that the surcharge payable under section 5A of the OST Act on the sales tax payable after setting off of entry tax paid was also computed and deposited by the petitioner. In the circumstances narrat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he motor vehicle (inclusive of the entry tax payable) and once the amount of sales tax due is computed thereon, it is only then that "set-off can be claimed" and balance sales tax becomes payable. Such a statutory illustration clearly negates the very stand taken by the Revenue. A dealer of the motor vehicle is statutorily required to collect sales tax on the total value of the motor vehicle at the time of its sale by the petitioner (inclusive of entry tax) and after such collection, the tax due from the petitioner is required to be computed after adjusting therefrom the amount of entry tax paid by the petitioner at the time of entry of the vehicles. This aspect as noted hereinbove, has already been settled by this court in the case of LG Electronics (India) Ltd. [2007] 103 CLT 358 and therefore, is no longer res integra. On the basis of the facts and submissions made by the learned counsel appearing for the respective parties, the only issue involved in this case is clearly covered by the judgment of this court in the case of LG Electronics (India) Ltd. [2007] 103 CLT 358. Apart from the above, it would be relevant at this point to take note of sections 3 and 4 of the Orissa Entry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... octroi under the Orissa Municipal Act, 1950 (Orissa Act 23 of 1950), prior to the commencement of this Act for entry into any local area, those goods shall not be subjected to the levy of entry tax under this Act for their entry into that area on or after such commencement. 4.. Reduction in tax liability.-(1) Where an importer of motor vehicles liable to pay tax under sub-section (3) of section 3 being a dealer in motor vehicles becomes liable to pay tax under the Sales Tax Act by virtue of sale of such motor vehicles then his liability under the Sales Tax Act shall be reduced to the extent of tax paid under this Act. Explanation.-For the purpose of this sub-section the chassis and the vehicle with body built on the chassis shall be treated as one and the same goods. (2) When an importer or manufacturer of goods specified in Part III of the Schedule except motor vehicles pays tax under sub-section (1) of section 3 or section 26 of this Act, being a dealer under the Sales Tax Act becomes liable to pay tax under the said Act by virtue of sale of such goods then his liability under the Sales Tax Act shall be reduced to the extent of tax paid under this Act." It is absolutely clea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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