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HIGH COURT OF MADRAS
Honourable Dr Justice ANITA SUMANTH
M/s.Consortium Management – Appellant
Versus
The State – Respondent
Tax - Entry Tax - Assessment Process - The court emphasized the need for a lawful assessment of entry tax by the officials, affirming the right to challenge tax demands and the process for refunds based on earlier judgments.
Fact of the Case:
The petitioner sought to prevent the collection of entry tax on a vehicle without prior assessment, having previously obtained an interim injunction against such collection.
Finding of the Court:
The court concluded that no assessment had been made for the entry tax, thus vacating the interim injunction and directing an assessment to be conducted promptly as per legal provisions.
Issues: Whether the petitioner could be compelled to pay entry tax without prior assessment by the tax authorities.
Ratio Decidendi: The necessity of a lawful assessment before the collection of taxes was reiterated, with the court ruling that the interim injunction was no longer valid due to the absence of an assessment.
Final Decision: Writ petition disposed, assessment to be conducted as per law.
O R D E R
(Order of the Court was made by Dr.ANITA SUMANTH,J.)
The prayer in this writ petition is for a mandamus forbearing the respondents for demanding or collecting entry tax on Skoda Octavia 1.9 TDI Rider (Stone Grey) car bearing Chassis No.TMBCGFIU25A030583 and Engine No.ALHE04653.
2.The petitioner had also obtained an interim injunction on 30.08.2005 as prayed for. Thus, till date there has been no assessment of entry tax made on the petitioner.
3.The petitioner relies on a series of orders to the effect that excess of entry tax paid, if any, would be refundable, if the rates of entry tax and sales tax in that State were disparate. There is no quarrel with the proposition as putforth except that in this matter there has been no assessment made. Thus, the interim injunction granted on 30.08.2005 stands vacated.
4.There is a direction to the respondents to assess the petitioner to entry tax in accordance with law for which purpose the petitioner will appear before the Assistant Commissioner (ST), Mylapore, Chennai/R2, who is the authority presently holding jurisdiction for Entry Tax Assessments on 20.08.2024 at 12.00 noon without anticipating any further notice. The petitioner will be granted audience, heard and an order of assessment be passed within a period of four (4) weeks thereafter, i.e. on or before
20.09.2024 in accordance with law.
5.Thereafter, the rationale of the judgments in (1) Jindal Stainless Ltd.
v. State of Haryana [AIR 2016 SC 5617]; (2) Commercial Tax Officer, Peelamedu South Assessment Circle v. Coimbatore Auto Garage (P) Ltd. [(2011) 45 VST 69 (Mad.); (3) Khivraj Motors Limited v. Assistant Commissioner (CT), Fast Track Assessment Circle III, Chennai [W.A.Nos.3201 to 3204 of 2004 dated 04.02.2010] and; (4) State of Tamil Nadu v. Ganesh Automobiles [(2004) 134 STC 272 (Mad.)], shall stand triggered and if there is any refund due to the petitioner in accordance with the ratio of the aforesaid judgments, the same shall be paid over with interest within a period of eight (8) weeks from date of assessment order.
6.This writ petition is disposed. No costs. Connected miscellaneous petitions are closed.
(A.S.M.,J) (G.A.M.,J)
05.08.2024 Index: Yes/No Neutral Citation : Yes vs To
1.The Secretary, Home (Transport) Department, Fort St.George, Chennai – 9.
2.The Commercial Tax Officer, Greams Road, Chennai.
3.The Regional Transport Officer, Chennai – West, Chennai.
4.The Motor Vehicle Inspector-Grade-I, Regional Transport Office (Central), Chennai.
Dr.ANITA SUMANTH,J AND G.ARUL MURUGAN,J.
vs W.P.No.27619 of 2005 & W.M.P.Nos.30055 & 30056 of 2005
05.08.2024
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