9911796707
TMI Blog2014 (6) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... ax – Entry Tax on import of crude oil - Constitutional validity of the UP Tax On Entry of Goods Into Local Areas Act, 2007– Held that:- Assessees have paid substantial amount by way of Entry Tax to the Department - For the assessment years 2000-- 2001 to 2009--2010, the petitioners have filed appeals/revisions before the High Court/statutory authorities and those appeals are pending for consideration - The request of the assessee acceptable since it is not causing any prejudice to the department - Accordingly, petitioners/assessees granted liberty to make appropriate application/petition before the appellate authorities/revisional authorities/High Court – Respondents instructed not to resort to recovery proceedings against the petitioners till the disposal of the applications/petitions– Decided in favour of Assessee. Constitutional validity of the UP Tax On Entry of Goods Into Local Areas Act, 2007– Liability to pay Entry tax – Pre-deposit - Held that:- The operation of the impugned judgment and order is stayed subject to the appellant in each case depositing 50% of the accrued tax liability/arrears under the U.P.Act, 2007 and furnish bank guarantee for the balance amount - The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, we hold that the State of U.P. did not lack legislative competence in enacting U.P. Tax on Entry of Goods into Local Areas Act, 2007, imposing entry tax on the entry of scheduled goods into the local areas for consumption, use or sale thereunder. The provisions of the Act patently and facially indicate and that there are sufficient guidelines and guarantees under the Act for ensuring that the entire amount of entry tax collected and credited to the U.P. State Development Fund is utilised only for the purposes of its reimbursement to facilitate the trade, commerce and industry. The State Government has also established that the entire amount of entry tax is by way of reimbursement / recompense to the trade, commerce and industry, in the local areas of the State of U.P. provides quantifiable/ measurable benefits to its payers. The levy under the Act, 2007 is also not discriminatory, unreasonable or against public interest. The levy of entry tax under the Act, therefore, does not violate the freedom of trade, commerce and intercourse guaranteed under Art.301 of the Constitution of India. Section 17 of the Act validating the amount of entry tax levied, assessed, realized and collect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f hearing. While doing so, after hearing Shri R.F.Nariman, learned Solicitor General, appearing for the petitioners, we had passed the following Order : "Shri R.F.Nariman, learned Solicitor General, appearing for the Petitioner in this matter, would contend that the respondents have issued demand notices, inter alia, demanding the payment of Entry Tax under the provisions of U.P. Tax on Entry of Goods Into Local Areas Act, 2007 for the assessment periods 2007--2008, 2008--2009, 2009--2010 and 2010-2011, without there being any quantification by way of assessments for all these years. Faced with this situation, learned senior counsel, Sh. K.K. Venugopal, appearing for the respondent--State would submit that he will file an appropriate affidavit indicating whether the petitioners herein have filed the monthly or annual returns for the assessment years in question and whether the department has completed assessments or the basis on which the demand notices are issued. To facilitate them to file the said affidavit, we adjourn this matter to Thursday i.e. 12.01.2012." On the last date of hearing, learned senior counsel appearing for the petitioners had submitted before us that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riman, submits that the assessees stand unique in its own way and the assesse should not be treated like any other assessee(s). We are not inclined to accept the request of the learned Solicitor General. We say so for the reason that all the dealers under the Act, unless they are exempted from payment of tax under the Act, should be treated equally and further, the uniformity even while passing the interim orders is the hallmark of this justification. Therefore, the assessee is also a dealer under the Act and the said assessee is to be treated in the same manner as has been done in the case of the other assesses under the Act. Learned Solicitor General, Shri R.F.Nariman has also brought to our notice the orders passed by this Court in the case of Bongaigaon Refinery Petrochemical Ltd [Now Indian Oil Corporation Limited] vs. State of Assam Ors., wherein this Court has granted an interim stay of the demand notices issued by the assessing authority by directing the assessee to deposit twenty five per cent of the outstanding amount and then has modified it by increasing the deposit to be made approximately to thirty three per cent. At this stage, we only to say that the interim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellate authorities/revisional authorities/High Court within four weeks' time from today. If such an application is filed within the time granted by this Court, the appellate authority/ revisional authority/High Court will consider the same in accordance with law within four weeks thereafter. Shri Sunil Gupta, learned senior counsel appearing for the State, on instructions would submit that the respondents shall not resort to any recovery proceedings against the petitioners till the disposal of the applications/petitions filed by the assessee. The same is placed on record. SLP (C) No. 196/2012 [Moser Beer India Ltd. vs. STATE OF U.P. ORS.] Notice to the respondents. Learned counsel appears and accepts notice on behalf of all the respondents. Leave granted. In this Civil Appeal, the appellant is questioning the correctness or otherwise of the common judgment and order passed by the High Court of Judicature of Allahabad in Writ Tax No.1482 of 2007 etc. dated 23.12.2011. In the Writ Petition filed, the appellant had questioned the constitutional validity of the U.P. Tax on Entry of Goods Into Local Areas Act, 2007 (`U.P.Act, 2007' for short). We have heard learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t--State of U.P. to verify the veracity of the statement made by the appellant in the affidavit filed insofar as the tax burden being passed on the consumers directly or indirectly. Liberty is granted to the respondents to file appropriate application before this Court for modification of the interim orders granted, if for any reason, the appellant in this case has passed on the tax burden on the consumers". 6. The Lucknow Bench of this Court in Misc. Bench No. 11810 of 2011 and other connected petitions at Lucknow, disposed of the writ petitions in terms of the interim orders passed by the Apex Court in Indian Oil Corporation Ltd's case. The order has also been followed by this Court in some writ petitions, disposing of the matters in terms of the interim order passed by the Apex Court. 7. After hearing Shri S.D. Singh, appearing for the petitioners and Shri S.P. Kesarwani, appearing for the State respondents, we are of the opinion that so far as this Court is concerned, all the writ petitions, in which the constitutional validity of the Uttar Pradesh Tax On Entry of Goods Into Local Areas Act, 2007 was challenged, were dismissed, and that all the petitioners were relegated ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
