TMI Blog2009 (2) TMI 787X X X X Extracts X X X X X X X X Extracts X X X X ..... to pay entry tax on the motor vehicle into the local area as on the date on which the vehicle was imported by the appellant. No appeal has been preferred by the respondent against the order setting aside the imposition of penalty by the learned single judge and as such, the said order has become final. In such circumstances, we are of the considered view that it is not permissible for the respondent to collect penalty also in the present case. In the result, the writ appeal is allowed and the direction of the learned single judge for payment of entry tax is set aside. - Writ Appeal No. 1003 of 2006 - - - Dated:- 10-2-2009 - PRABHA SRIDEVAN AND SASIDHARAN K.K. , JJ. The judgment of the court was delivered by K.K. SASIDHARAN J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 1995, when the appellant imported the JCB excavator, there was no requirement for registration under the Motor Vehicles Act and as such there was no question of filing any declaration before the authorities. The learned single judge was of the opinion that it was not mandatory on the part of the appellant to register the vehicle during the material time and only after the judgment of the Supreme Court in the year 2001 which made the position clear that the JCB excavator also requires registration under the Motor Vehicles Act, that the necessity to register the vehicle arose and as such, it was not proper on the part of the respondent to levy penalty. However the appellant was directed to pay tax as per the assessment order. Aggrieved b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1990 (hereinafter referred to as the Entry Tax Rules ) permits the assessing authority to call for information from a person for the purpose of proceeding under the Entry Tax Act and as such, the notice calling upon the appellant to produce details as well as the subsequent assessment order on the basis of such details furnished by the appellant was clearly done as per the Act and as such, no interference is called for in the order of the learned single judge directing the appellant to pay entry tax. The Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990 was enacted to curb the evasion of sales tax on the sale of motor vehicles, which are purchased outside the State and brought into the State of Tamil Nadu. According ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant and the entry of the said vehicle into the local area was in the year 1995 and more particularly on May 16, 1995. The Entry Tax Act provides for filing return only by a person liable to pay tax under the Act. Therefore the liability arose only in the event of the assessee importing the motor vehicle within the meaning of section 2(28) of the Motor Vehicles Act, 1988. It was the case of the appellant that the registering Department was not registering the JCB excavators on the ground that the excavator does not come within the meaning of the motor vehicle as defined under section 2(28) of the Motor Vehicles Act, 1988. When there was no requirement for registration of a vehicle under the Motor Vehicles Act and as section 3 provides t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct provides for assessment on the basis of the return furnished by a person liable to pay tax and the related proceedings for passing the assessment order on best judgment basis. When the Act does not make a specific provision for assessment of an importer, who failed to furnish the return under section 7, it was not within the powers of the assessing authority to assess the importer long after the import made by him, by making use of the details furnished by such importer consequent to the notice of demand made by the assessing authority. There was no requirement on the part of the appellant to submit a return during the year 1995 under the provisions of the Entry Tax Act as the vehicle purchased by him was not a motor vehicle li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from an importer, who failed to file returns as provided under section 7 of the Entry Tax Act. However there is no such provision which enables the authority to make an assessment for the purpose of recovery of entry tax. Therefore we are of the opinion that the respondent was not justified in demanding entry tax from the appellant. The honourable Supreme Court in State of Punjab v. Bhatinda District Coop. Milk P. Union Ltd. [2007] 10 VST 180 while interpreting the provision of the Punjab General Sales Tax Act, 1948, which gives power to the assessing authority for reopening the order of assessment considered the question of limitation, even where no statutory period of limitation has been prescribed for reassessment and observed th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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