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IN THE HIGH COURT OF MADHYA PRADESH AT INDORE
P.K. JAISWAL, VIVEK RUSIA, JJ.
M/s. IDEA Cellular Ltd. – Petitioner
Vs.
Assistant Commissioner, Commercial Tax & Others. – Respondents
Writ Petition No.6304, 6645, 8408 of 2013, 2760, 7534 of 2014, 5517 of 2015, 2328 of 2016, 308 of 2017, 6076 of 2018, VATA No.2, 3 of 2013, 13, 14 of 2014, 2, 3 of 2015
T.R. No.108, 109, 110 of 2017
Decided On : 22-10-2018
Entry Tax - Telecommunication Services - MP Entry Tax Act, MP Commercial Tax Act, VAT Act - Section 3(1), Section 3(2) - The court decided that the Assesse, engaged in providing telecommunication services, is liable to pay Entry Tax under Section 3(1) of the MP Entry Tax Act for bringing goods into the local area for consumption and use. The court also held that SIM cards can be considered as 'goods' for the purposes of Entry Tax as they are used and consumed in providing services to customers.
Fact of the Case:
The Assesse, a telecommunication company, challenged assessment orders imposing entry tax on goods brought within the local area under the MP Entry Tax Act. The Assesse argued that its activities were service-oriented and not involved in buying, selling, supplying, or distributing goods, thus not liable to pay Entry Tax.
Finding of the Court:
The court found that the Assesse, by bringing goods for consumption and use in providing telecommunication services, is liable to pay Entry Tax under Section 3(1) of the MP Entry Tax Act. The court also held that SIM cards can be considered as 'goods' for the purposes of Entry Tax.
Issues: The issues involved the liability of the Assesse to pay Entry Tax for bringing goods into the local area, the applicability of Entry Tax on goods imported from outside India, and the classification of SIM cards and Recharge Coupons as liable for Entry Tax.
Ratio Decidendi: The court interpreted the provisions of the MP Entry Tax Act, MP Commercial Tax Act, and VAT Act to determine the liability of the Assesse to pay Entry Tax. The court's decision was influenced by the definition of 'dealer' and 'business' under the VAT Act, the nature of the Assesse's activities, and the use and consumption of goods in providing telecommunication services.
Final Decision: The court dismissed all petitions, appeals, and references, holding that the Assesse is liable to pay Entry Tax under Section 3(1) of the MP Entry Tax Act and that SIM cards can be considered as 'goods' for the purposes of Entry Tax.
Vivek Rusia, J.
All above writ petitions, VAT Appeals and T.R.s’ involves common questions of law; hence all are being decided by this common order.
Interpretations of provisions of following enactments are involved in these cases:-
(i) Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976 (hereinafter referred as “MP Entry Tax Act”) 2. The Assesses and appellants company are engaged in the activities of providing telecommunication services are herein after referred as “Assesse”.
(ii) Madhya Pradesh Commercial Tax Act, 1994 (hereinafter referred as “MPCT Act”) and
(iii) Madhya Pradesh Value Added Tax Act, 2002 (hereinafter referred as “VAT Act”).
2. The Assesses and appellants company are engaged in the activities of providing telecommunication services are herein after referred as “Assesse”.
W.P. No.6304/2011 has been filed by the Assesse being aggrieved by order dated 29.3.2010 passed by Assessing Authority and order dated 30.4.2011 passed by the Appellate Authority, by which, entry tax has been imposed under the M.P. Entry Tax Act for the for the period 2007-2008 over various goods like building material, plant & machinery, computer hardware, computer software, furniture fixers, office-equipment, vehicle, CWIP plant & machinery, SIM cards, recharge voucher, marketing material, etc. brought within the local area.
W.P. No.6645/2012 has been filed by the Assesse being aggrieved by assessment order dated 16.4.2012 passed by the Assessment Authority, by which, entry tax has been imposed over various goods brought within the local area under the M.P. Entry Tax Act for the for the period 2009-2010.
W.P. No.2760/2014 has been filed by the Assesse being aggrieved by assessment order dated 21.12.2012 passed by the Assessment Authority, by which, entry tax has been imposed over various goods brought within the local area under the M.P. Entry Tax Act for the for the period 2008-2009.
W.P. No.8408/2013 has been filed by the Assesse being aggrieved by assessment order dated 19.3.2013 passed by the Assessment Authority, by which, entry tax has been imposed over various goods brought within the local area under the M.P. Entry Tax Act for the for the period 2010-2011.
W.P. No.7534/2014 has been filed by the Assesse being aggrieved by assessment order dated 31.7.2014 passed by the Assessment Authority, by which, entry tax has been imposed over various goods brought within the local area under the M.P. Entry Tax Act for the for the period 2011-2012.
W.P. No.5517/2015 has been filed by the Assesse being aggrieved by assessment order dated 28.2.2015 passed by the Assessment Authority, by which, entry tax has been imposed over various goods brought within the local area under the M.P. Entry Tax Act for the for the period 2012-2013.
W.P. No.2328/2016 has been filed by the Assesse being aggrieved by assessment order dated 30.1.2016 passed by the Assessment Authority, by which, entry tax has been imposed over various goods brought within the local area under the M.P. Entry Tax Act for the for the period 2013-2014.
W.P. No.308/2017 has been filed by the Assesse being aggrieved by assessment order dated 30.12.2015 passed by the Assessment Authority, by which, entry tax has been imposed over various goods brought within the local area under the M.P. Entry Tax Act for the for the period 2003-2004.
W.P. No.6076/2018 has been filed by the Assesse being aggrieved by assessment order dated 23.1.2018 passed by the Assessment Authority, by which, entry tax has been imposed over various goods brought within the local area under the M.P. Entry Tax Act for the assessment year 2015-2016.
VATA No.2/2013 has been filed by the appellant u/s. 53 of M.P. VAT Act, 2002 against the order dated 23.10.2012 passed in the appeal by M.P. Commercial Tax Appellate Board, Bhopal for the period 2006-2007 (entry tax).
VATA No.3/2013 has been filed by the appellant u/s. 53 of M.P. VAT Act, 2002 against the order dated 23.10.2012 passed in the appeal by M.P. Commercial T
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