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2008 (1) TMI 837 - HC - VAT and Sales TaxLevy and collection of tax on the entry of goods into the local areas of the State of Orissa for consumption, use or sale therein and matters incidental thereto and connected therewith, Orissa State Legislature promulgated the Orissa Entry Tax Act, 1999 (Orissa Act 11 of 1999) on September 20, 1999 challenged Held that:- We are only determining the issue whether the impugned levy imposed by way of the Orissa Entry Tax Act was compensatory in nature and, therefore, we consider whether the impugned enactment facially or patently indicates the quantifiable data on the basis of which the compensatory tax is sought to be levied and whether the Act facially indicates the benefits which is quantifiable or measurable and the proportionality of the quantifiable benefits but we have not found any such thing in the Act. They do not show that payment of entry tax is reimbursement/recompense for the quantifiable and measurable benefits to be provided to its payers. Providing facilities to the citizens or others would not definitely come under the activities like movement of trade, commerce and intercourse for the free-flow of trade and commerce. Therefore, the State has failed to show that the Orissa entry tax is reimbursement/recompense for the quantifiable and measurable benefits provided to trades people and the provision for realisation of tax therein was not compensatory in nature.
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