Interpretation of “local area” - Levy of entry tax - The object ...

Clarifying "Local Area" for Entry Tax: Goods Entering Industrial Areas for Manufacture or Sale Trigger Tax Liability.

November 7, 2022

Case Laws     VAT and Sales Tax     SC

Interpretation of “local area” - Levy of entry tax - The object of the levy, i.e., entry tax, is the regulation of entry of goods in a regular area for consumption, i.e., manufacture, use or sale. There is no dispute that entry of goods into an industrial area or estate is for their use for manufacturing or for processing or for the purposes of their delivery as their ultimate point of destination, i.e. for the purpose of their “consumption, use or sale” within that area. It could even be that the goods enter within the industrial area or estate, as the ultimate point of destination for their use. In any case, the levy would be attracted because the incidence is the entry into the local area. - SC

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