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TMI Blog2017 (1) TMI 1559X X X X Extracts X X X X X X X X Extracts X X X X ..... Maruti Udyog Ltd. Haryana and at that point of time, entry tax is paid when the vehicle is brought to Indore and it is sold at Indore and thereafter, the vehicle again re-sold to the petitioner i.e. ‘Maruti True Value’. There is no change in respect of local area i.e. Indore where vehicle owner has sold the vehicle to the petitioner - entry tax has already been paid in respect of the vehicles, which have been sold to the persons who are residing at Indore, this Court is of the considered opinion that the respondents cannot charge the tax upon the goods which have already entered in local area and in respect of which the entry tax has already been paid. This Court is of the considered opinion that the entry tax assessed vide order dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... meaning thereby, the vehicles having registration of the local area and having registration out side the local area. Dispute in the present case is whether in respect of the vehicles which have been sold by the petitioner or whether in respect of the vehicles, which have been sold from Indore dealers to various persons and in respect of the same vehicles the Entry Tax has already been paid can be subjected to payment of entry tax again on selling of second hand vehicles, in spite of the fact that there is no change of local area or without causing entry from one local area into another local area. It has been stated before this Court that in respect of the vehicles purchased from outside persons (unregistered dealers), within the same l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd. In the present case, The Preamble of Entry Tax Act, 1876 (No.52 of 1976) r/w Section 2: Definitions, read as under:- B.1-An Act to levy a tax on the entry of goods into a local area in Madhya Pradesh for consumption, use or sale therein. The aforesaid preamble makes it very clear that Entry Tax Act, 1976 was enacted to levy a tax on the entry of goods into a local area in Madhya Pradesh for consumption, use or sale therein. Other statutory and necessary provisions for deciding the present writ petition are detailed as under:- B.3- The Charging provisions contained in section 3 and the same reads as under:- S. 3. Incidence of taxation.- (1) There shall be levied on entry tax,- (a) on the entry in the cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid by him in respect of such goods and such set off shall be adjusted towards the tax payable by him in such manner as may be prescribed: Provided further that notwithstanding anything contained in this Act, where a dealer in the course of his business, purchases goods from a person or a dealer other than a registered dealer who has effected entry of such goods into a local area prior to such purchase, the entry tax shall be paid by the dealer who has purchased such goods: Provided also that notwithstanding anything contained in this Act, where a dealer liable to pay tax under the MP VAT Act, 2002 in the course of his business into a local area, purchases goods specified in Schedule III, other than goods which are local goods i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and in respect of vehicles where no entry tax has been paid at all. Petitioner in respect of the goods when the entry tax has already been paid cannot be forced to pay the entry tax twice as the goods are not entering in local area again and there is only a change in the ownership. The Entry Tax Act provides for levy of tax upon entry into local area and in case of change of ownership, no case is made out to pay the entry tax as the same has already been paid at the first instance. In the present case, petitioner being a dealer in Indore purchases goods from Maruti Udyog Ltd. Haryana and at that point of time, entry tax is paid when the vehicle is brought to Indore and it is sold at Indore and thereafter, the vehicle again re-sold t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er/persons without there being any entry area is bad in law, meaning thereby, the respondents cannot charge the tax again upon the vehicles which have already entered in the local area and in respect of the same vehicles, tax has already been paid. Resultantly, the writ petitions are allowed. The impugned order to the extent stated above is quashed. Respondents are directed to refund the amount recovered from the petitioner within a period of 90 days from today failing which the amount shall carry an interest @ 12% from the date of realisation till the amount is actually paid to the petitioner. The other connected writ petition is also allowed. The impugned order is quashed. No order as to costs. - - TaxTMI - TMITax - CST, VAT & Sal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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