2026:MHC:221 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 20-01-2026 CORAM THE HON'BLE DR.JUSTICE ANITA SUMANTH AND THE HON'BLE MR.JUSTICE MUMMINENI SUDHEER KUMAR WP Nos. 23405 and 23406 of 2001 AND WPMP Nos. 34532 and 34530 of 2001 M/s AR.A.S.AUTO (P) LTD., rep by its Director R.Kanagasabai Melur Road ..Petitioner in Uthankudi W.P.No.23405 of 2001 Madurai 625 107 M/s AR.A.S.AUTO (P) LTD., rep by its Director R.Kanagasabai ..Petitioner in

38, T.P.K.Road W.P.No.23406 of 2001 Madurai 625 001 Vs

1. The State Of Tamilnadu Rep by its Secretary, Commercial Tax Department, Fort. St. George, Chennai 600 001

2. The Commercial Tax Officer Nethaji Road Assessment Circle Madurai ..Respondent in both W.P.’s Common prayer: Writ petitions filed under Article 226 of Constitution of India for issuance of Writ of Certiorarified Mandamus calling for the records of the first respondent pertaining to Item Nos.2 and 3 of Notification No.II(2)/CT/11(1-2)/99 published vide G.O.Ms.No.6 dated 12^th January 1999 in exercise of powers conferred under sections 3 and 4 of the Tamilnadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990 and quash the same insofar it imposes entry tax higher than the sales tax under the Tamilnadu General Sales Tax Act, 1959 on the value of the cars and tractors imported by the petitioner from outside the State of Tamilnadu as violative of Articles 14, 19(1)(g), 301, 303(1) and 304(a) of Constitution of India and consequently direct the second respondent herein to refund to the petitioner the amount of entry tax collected from the petitioner in excess of the equivalent sales tax and remaining with the second respondent after adjustment of sales tax.

In both W.P.’s For Petitioner(s): Mrs.R.Hemalatha Senior Standing Counsel For Respondent(s): Mr.V.Prashanth Kiran Government Advocate COMMON ORDER (Order of the Court was made by Dr.Anita Sumanth J.)

Mr.V.Prashanth Kiran, learned Government Advocate for the respondents fairly accedes to the position that the issue involved in these Writ Petitions relating to the levy of entry tax at a higher rate than sales tax under the Tamil Nadu General Sales Tax Act, 1959, on the value of vehicles imported from outside the State of Tamil Nadu is covered by a decision of this Court in Hindustan Motors Ltd. V. State of Tamil Nadu (W.P.Nos.1656 of 1996 etc. Batch dated 28.03.2024), wherein the first Bench of this Court held that the revenue is not entitled to charge entry tax on the vehicles or the goods imported from outside the State, more than the sales tax/VAT levied on the goods manufactured within the State and directed the petitioners therein to apply for refund.

2. The relevant portion of the aforesaid decision reads as follows:

3. The substratum of the petitioners' contention is that there is a disparity in the entry tax on the goods imported from the other States and the sales tax/VAT levied on the goods manufactured within the State. The same is impermissible. If the entry tax is more than the sales tax leviable on the local product, then the petitioners are entitled for refund of the excess entry tax paid. Reliance is placed on the judgment of the Constitution Bench of the Apex Court in the case of Jindal Stainless Ltd. v. State of Haryana [AIR 2016 SC 5617 :: (2017) 12 SCC 1] and three Division Bench judgments of this Court in Commercial Tax Officer, Peelamedu South Assessment Circle v. Coimbatore Auto Carage (P) Ltd. [{2011) 45 VST 69 (Mad.), 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 State of Tamil Nadu v. Ganesh Automobiles [(2004) 134 STC 272 (Mad.)].

4. In most of the writ petitions, the vehicles are cars and in W.P.No.139 of 2001, the vehicle is a tractor, in W.P.No.7605 of 2006, the goods involved are being used for conversion of CTD Bars and in W.P.No.26712 of 2008, the vehicle is JCB.

5. The learned Additional Advocate General fairly concedes that in view of the judgme