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TMI Blog2000 (2) TMI 834X X X X Extracts X X X X X X X X Extracts X X X X ..... not liable to pay penalty. They also contended that there is no substantive charging provision in the Act to levy interest on such payment of tax. 4. The learned Single Judge in his judgment has held that the Act as it stands fastens the liability on the head of the petitioners for the incidence of entry tax. The learned Single Judge also held that the assessees are liable to pay penalty. However, the learned Single Judge came to the conclusion that the interest charged on the levy on the petitioners cannot be charged. 5. Argument of the petitioners before the learned Single Judge regarding reduction of tax was repelled. It was held that incidence of tax is applicable to the petitioners with reduction. In view of the provisions of Section 4(2) of the Act, the petitioners were not held entitled to reduction. Rule 3 which was challenged before the learned Single Judge has been held to be valid. Since, provision of rule has not been followed the assessees, they cannot claim any reduction. 6. The assessees in their appeals have contended that the provisions of the Act say that the incidence of tax is attracted on the date of entry of the motor vehicle in the local area. Since ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ET-1 form was required to be deposited at the check post. Such check posts have been absolished by the State of Rajasthan. This, after abolition of check posts in the State, there was no occasion where the assessee could deposit the ET-1 form. If the ET-1 form could not be deposited by the assessee as required under Rule 4 of the Rules then this condition of not following Rule 4 of the Rules cannot be put against him for taking benefits of Section 4(2) of the Act. 11. As regards interest, it has been submitted that the learned Single Judge has rightly denied the incidence of interest to the department because the interest is not chargeable as it not mentioned in the charging section. 12. Findings of learned Single Judge regarding interest are supported by assesses appellants as that are based on a pronouncement of the Hon'ble Supreme Court in the case of India Carbon Ltd. v. State of Assam 1997 106 STC 460. 13. Learned counsel for the department asserted that the incidence of tax has been provided in Section 3 of the Act. Sub-section (1) of Section 3 of the Act provides that tax should be levied and collected on the purchase value of a motor vehicle, an entry of whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the department has acted in any manner which can be termed to be illegal. 17. Learned counsel for the department then submitted that the assessee cannot ask for the reduction in the tax liability. The reduction in tax liability can be claimed if the assessee has fulfilled the conditions to which action under Section 4(2) of the Act has been subjected to. The conditions are prescribed in the Rules. The assessee having not complied with the requirement of Rule 4(2) of the Rules, cannot ask for reduction. Under Rule 4(3) of the Rules it is clearly stated that any one who claims the reduced rates of tax under Section 4(2) of the Act shall furnish a declaration in Form ET-1 appended to the Rules together with the copy of the purchase bill of the said motor vehicle at the entry check post in the State. The argument of the assessee that check posts have been abolished, cannot dilute the rigour of this rule. It cannot be said that the check posts having been abolished they could not furnish the Form ET-1. Form ET-1 can be obtained by the person importing a motor vehicle into a local area in the State for personal use. If he applies on simple paper to the Commercial Taxes Officer. As and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich is the subject matter of levy were admittedly imported by the assessees. Therefore, the case law relied upon by the assessees is of no assistance to them and the incidence of tax as provided in Section 3 of the Act is attracted towards the assessees. 22. Coming to the question of implication of Section 4 of the Act which deals with the reduction of tax liability, it can be observed that Section 4(2) is attracted only when the conditions, as prescribed, have been followed by the persons claiming reduction. In the instant case, the conditions have been prescribed under the Rules of 1992. The conditions having been prescribed the assessee cannot say that he was not bound by those conditions. No refuse can be taken by the assessees that the checkposts are not there. The assessees could have submitted the Form ET-1 to the Commercial Taxes Officer. In any case, the assessees could have at least obtained it as provided under the Rules. Having not applied and obtained it cannot be said that the assessees were right in claiming that they have fulfilled the prescribed conditions. That being the position, the reduction claimed by the assessees in the writ petition under Section 4(2) o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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