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2019 (1) TMI 1714 - HC - VAT and Sales TaxLevy of entry tax on vehicles - goods imported by the petitioners from out side the country - Constitutional validity of Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990 - HELD THAT:- The Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990 was an act to provide for the levy of tax on the entry of the motor vehicles into local areas for the use of sale therein. This Act was in replacement of an Ordinance No. 1 of 1990 promulgated by the Governor on February 19, 1990 and published in the Gazette on February 20, 1990 and deemed to have come into force from February 20, 1990 - The Statement of Objects and Reasons attached to the Bill introduced in the legislative assembly in respect of the said Act was with a view to curb the evasion of sales tax on the sale of motor vehicles which are purchased outside the State and brought into this State, the Government have decided to levy tax on entry of motor vehicles into local areas of this State either for use or sale therein which is liable for registration in the State under the Motor Vehicles Act, 1988. On a reading of both the Statement of Objects and Reasons, it is evidently clear that both the enactments have been enacted for a common purpose that is to curb evasion of sales tax on motor vehicles purchased from outside the State and brought into the State for use or sale therein, which are liable for registration under the Motor Vehicles Act, 1988. The legal principles which flow from the observations contained in the above paragraphs is that the well established principle of statutory interpretation, to help finding out as to whether particular category of assessee is to pay particular tax or not. The court makes endeavour to find out the intention of the Legislature. At the same time, the very principle is based on "fairness" doctrine as it lays down that if it is not very clear from the provisions of the Act as to whether the particular tax is to be levied to a particular class of persons or not, the subject should not be fastened with any liability to pay tax. Statutory interpretation cannot be done, as by process of interpretation, the provision cannot be re-written nor any word can be introduced. Further, it was held that the expression "any place" before the words "outside the State" is also indicative of wide extent. The words "any place" cannot be limited to a place within the territory of India when no such indication is discernible from the provisions of the Act. Further, it was pointed out that the origin of goods has no relevance with regard to chargeability of entry tax. The writ petitions are dismissed and it is held that the petitioners are liable to pay entry tax on imported vehicles brought into the State of Tamil Nadu for use or for sale - decided against petitioner.
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