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2006 (11) TMI 554 - GAUHATI HIGH COURTLevy entry tax - goods imported - Restrictions as to imposition of tax on the sale or purchase of goods - article 286 of the Constitution of India - Whether the State is competent to levy entry tax on the goods imported into a local area from outside country? - HELD THAT:- Since the restrictions, imposed by article 286, are only on the levy of tax on the sale and purchase of goods, the State is competent to levy entry tax by virtue of entry 52 of List II of the Seventh Schedule to the Constitution of India on the goods imported into any local area from outside the State for use, consumption or sale therein. Thus, there is no merit in the contention advanced, on behalf of the petitioners, that the State has no power to levy entry tax on the goods imported into any local area from outside the State even if such entry is for the purpose of use, consumption or sale in the local area. In the present case, the language of section 3 read with section 2(1)(b) of the Act is very clear that the Assam Entry Tax Act, 2001, provides for levy of entry tax on entry of specific goods into a local area from another local area or from outside the State only and the same does not provide for levy of entry tax into local area from outside the country and, hence, no entry tax can be levied on entry of specified goods into a local area imported from outside the country. In short, no entry tax can be imposed by the State on the goods imported into a local area from outside the country. In fact, such is not the legislative intent, for, section 3 read with section 2(1)(b) of the AET excludes goods brought into a local area, in Assam from outside the country in the course of import of such goods into the territory of India. In the case at hand, as the entry of the specified goods into a local area of the State is in the course of import into the territory of India, such import is not subject to levy of entry tax under the AET Act. Hence, the imposition of entry tax on the goods, in question, cannot be sustained and is, therefore, set aside and quashed. The respondents are directed not to insist on payment of entry tax by the present petitioners. Thus, this writ petition shall stand disposed of.
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