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TMI Blog2010 (1) TMI 1148X X X X Extracts X X X X X X X X Extracts X X X X ..... ons of the Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990 or not? The respondent-assessee is a dealer in automobiles and spare parts and is an assessee on the file of the Commercial Tax Officer, Peelamedu South Assessment Circle, Coimbatore. According to the assessee, they used to import automobiles from other States and when the automobiles were brought into the State for the assessment years 1998-99, 1999-2000 and 2000-01 they had paid entry tax at the rate of 13 per cent under the provisions of the Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990 (for short, "the Entry Tax Act"). As they are also liable to pay sales tax, accordingly, they had paid sales tax at the rate of 11 per cent and 12 per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Limited v. Assistant Commissioner (CT), Fast Track Assessment Circle III, Chennai [2005] 139 STC 233 (Mad) and had observed that the Division Bench judgment cannot be made applicable to all cases generally, as it was decided on the facts and circumstances of that case. As far as the issue in the present appeals are concerned, the learned Special Government Pleader would submit that the judgment of the Division Bench is not applicable. We have heard Mrs. R. Hemalatha, learned counsel for the respondent assessee also. We have carefully considered the submissions. In our opinion, the submission made by the learned Special Government Pleader deserves to be rejected. The Division Bench in Ganesh Automobiles case [2004] 134 STC 272 (Mad) cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation mark in this State after a period of eighteen months from the date of its registration. Explanation: For the purpose of this proviso, the expression 'law relating to motor vehicle' means the Motor Vehicles Act, 1939 or the Motor Vehicles Act, 1988, as the case may be. (2) The tax shall be payable by an importer in such manner and within such time as may be prescribed. 4. Reduction in tax liability: (1) Where an importer of a motor vehicle liable to pay tax under this Act, being a dealer in motor vehicles, becomes liable to pay tax under the General Sales Tax Act and additional sales tax under the Tamil Nadu Additional Sales Tax Act, 1970 (Tamil Nadu Act XIV of 1970) by virtue of the sale of such motor vehicle, then his lia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being a dealer in motor vehicles, becomes liable to pay tax under the TNGST Act by virtue of the sale of such motor vehicle, then his liability under the TNGST Act shall be reduced to the extent of tax paid under the Entry Tax Act. This provision is applicable to an importer of motor vehicle being a dealer in motor vehicles, who is liable to pay sales tax under the TNGST Act. There is no dispute that the respondent-assessee is a dealer in automobiles and they had imported automobiles from other States and also paid the entry tax in terms of section 3 of the Entry Tax Act. If that be the position, in view of section 4 of the said Act, their liability under the TNGST Act is reduced to the extent of tax paid under the Entry Tax Act. This is w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es tax in a sum of Rs. 1,23,04,721 at the rate of 12 per cent. The excess collection of entry tax comes to Rs. 8,08,811 and to this extent, the assessee is entitled to the refund of Rs. 8,08,811 as prayed for in the writ petition. From the above, it is seen that for the three assessment years in question, the respondent-assessee had paid the excess amount of entry tax and hence they are entitled to the refund in terms of section 11 read with section 4 of the Entry Tax Act. To this extent, we are entirely in agreement with the judgment of the Division Bench in Ganesh Automobiles Ltd. case [2004] 134 STC 272 (Mad). As regards the submission of the learned Special Government Pleader as to the order of the learned single judge in Khivraj Motors ..... X X X X Extracts X X X X X X X X Extracts X X X X
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