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TMI Blog2019 (9) TMI 953X X X X Extracts X X X X X X X X Extracts X X X X ..... saction completed therein. The same has to be assessed for that assessment year. Also, it has to be discharged or recovered, as the case may be, with reference to that assessment year only. The legal basis of the claim raised by the assessee is found non-existent. There is nothing to doubt the existence of the tax liability and its crystallization at the end of the A.Y. 2000-01. It also did not get diluted or wiped out upon occurrence of export of the machinery, in subsequent assessment year. Thus, the factual and legal basis of the claim raised by the assessee having arisen more than three years after the close of the assessment year 2000-01, the same is wholly unfounded. The taxable event occurred in and tax liability arose upon the assessee having caused the entry of machinery for use in the local area Allahabad, during the A.Y. 2000-01. It got crystallized on 31st March, 2001. The event of subsequent export of machinery outside the country during the A.Y. 2004-05, had no bearing on the unit of assessment being the A.Y. 2000-01. Revision dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... nto the local area, Allahabad from within the country but from outside the country. That claim was rejected. During the pendency of the present revision, the U.P. Tax On Entry of Goods Into Local Areas Act, 2007 (hereinafter referred to as a New Act) was enforced. The assessee has thus relied on the provisions of Section 4(6)(ii) of the New Act to contend that in any case, upon export of the disputed machinery, no tax liability survived as sub-section 6 of Section 4 overrides the charging provisions under Section 4(1) and 4(3) of the New Act. 6. Also, it has been submitted, for the purposes of export of machinery, no time limit is prescribed under sub-clause (ii) of sub section 6 of Section 4 of the New Act. Therefore, the fact that the assessee exported the machinery later i.e. during the A.Y. 2004-05, was inconsequential to the claim made by the assessee. Reliance has been placed on a decision of a Supreme Court in the case of Polestar Electronic (Pvt.) Ltd. Vs. Additional Commissioner, Sales Tax and Others (1978) 1 SCC 636 to submit that in view of the clear language of the statute, effect must be given to it to declare the intention of the law giver. Plain and natural meaning ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hindra and Mahindra and another J.T. 2001 (5) S.C. 544. 9. Having heard learned counsel for the parties and having perused the record, in the first place, under the Old Act, the charging Section was contained in Section 4. It read as below: "4. Levy of Tax.- (1) There shall be levied and collected a tax on entry of any goods specified in the Schedule into a local area from any place outside that local area including a place outside the U.P./Uttaranchal for consumption, use or sale therein, at such rates not exceeding five per cent of the value of the goods as may be specified by the State Government by notification and different rates may be specified in respect of different goods or different classes of goods: Provided that the State Government may by notification amend the schedule and upon issue of any such notification, the schedule shall, subject to the provisions of sub-section (6), be deemed to be amended accordingly. (2) The tax levied under Sub-Section (1) shall be payable by a dealer who brings or causes to be brought into the local area such goods, whether on his account or on the account of his Principal or takes delivery or is entitled to take delivery of such g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clearly under taxable. Thus, the levy of tax on entry of machinery (valued at more than 10 lacs) arose, no sooner the assessee caused the entry of those goods into the local area Allahabad from outside that local area for use. Under the Old Act, the subsequent Act of export of the machinery out of the country, was wholly irrelevant and had no bearing on the tax liability that had otherwise arisen and got finally attached to the transaction upon causing entry of such machinery inside the local area, for use. For the purposes of clarity, it has to be stated that no provision of the nature contained in Section 4(6) of the Act (New Act) existed under the Old Act. 11. In so far as it has been contended that no liability of entry tax arose, since the machinery had been imported from outside the country, that question stands squarely decided against the assessee, by the Supreme Court in Civil Appeal nos. 3381-3400 of 1998, State of Kerala and others Vs. Fr. William Fernandez decided on 09.10.2017, laying down the following rule: "144. In view of foregoing discussion, we arrive at the following CONCLUSIONS: (i) Orissa Entry Tax Act, 1999, Kerala Tax Act, 1994 and Bihar Tax on Ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overnment may by notification amend the schedule and upon issue of any such notification, the Schedule shall, subject to the provisions of sub-section (10), be deemed to be amended accordingly. (3) The tax levied under sub-section (1) shall be payable by a dealer who brings or causes to be brought into the local area such goods, whether on his account or on the account of his principle or takes delivery or is entitled to take delivery of such goods on its entry into a local area. Provided that the State Government, may by notification, permit any Power Project Industrial Unit engaged in generation, transmission and distribution, having aggregate capital investment of Rs. One thousand crore or more to own the liability of payment of tax of other dealers on the entry of such goods into a local area from any place outside that local area as are used and consumed by the said unit subject to such conditions as may be specified in the notification. (6) Notwithstanding anything contained in sub-section (1) or subsection (3), no tax shall be levied on and collected from a dealer, who brings or causes to be brought into a local area any goods which are,- (i) Consigned without using ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on either the taxable event or the consequent tax liability that may arise during any assessment unit/year. Such legislature intent and necessary intendment do not exist. For that reason, the subsequent event of export of machinery during the A.Y. 2004-05 (after it had been made use of during A.Y. 2000-01), would not have any bearing on the taxing event that arose in the year 2000-01 and stood completed in that year itself. 16. Moreover, the scheme of the New Act is very clear. Provisions granting reversal of entry tax liability and exemption from entry tax liability are separately provided for under the New Act. Thus, for any liability that may have arisen and which the statute intended to reverse has been specifically provided for by means of Section 5 of the New Act. At present such claim/s do not exist. Such claim/s, if any, having not been raised before the Tribunal, are not being dealt with here. 17. In so far as sub-section 4 (6) of the Act are concerned, it is true that the legislature provided separate conditions under Section 4(6)(i) and (ii) for the levy of tax in different circumstances. Further, it is also true that the condition of 'non-use' of the goods was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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