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TMI Blog2012 (7) TMI 861X X X X Extracts X X X X X X X X Extracts X X X X ..... plant and machinery for the purpose of expansion of unit, however, it did not pay the entry tax on the aforesaid unit because the petitioner purchased the following materials (annexure P/2) details of which, are as under: Total purchases Rs. 1,17,49,44,192 Raw material, stores and spares, packing material, capital stores, fuel, etc. 1,17,49,44,192 Total deductions: (1) Tax paid 6,12,05,646 spare parts 4,71,727 Chemical 43,48,450 Lubricant 4,89,578 Paint 9,799 H.S.D. 49,73,358 Natural gas 5,09,12,734 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bsp; Through R.A.O. 3,78,392 ------------- 77,23,304 ------------- Excess Refundable 93,098 ----------------------------------------- The petitioner is liable to pay tax at one per cent. The authority further held that there is a distinction between expansion capacity and establishment of new unit because the petitioner was in the activity of expansion, hence, it is liable to pay entry tax. The aforesaid point has already been decided by a Division Bench of this court in the case of Pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch were purchased for the construction of the building, cannot be said to be in the course of business of the assessee and the levy of purchase tax on the purchase of building materials was not justified." Hence, on the basis of aforesaid principle laid down by the Division Bench of this court, the petitioner is not liable to purchase tax and certainly it is not liable for entry tax because purchase of materials for expansion of business could not be said to be an activity in the course of business. Hence, the order passed by the authority is contrary to law. The learned Government Advocate for the respondents-State also raised an objection in regard to the maintainability of the petition on the ground that there is an alternative remedy ..... X X X X Extracts X X X X X X X X Extracts X X X X
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