2017 (8) TMI 1648 - SCH - VAT and Sales Tax

Validity of Tamil Nadu Entry Tax Act - levy of entry tax on Tobacco - HELD THAT - In the light of the judgment of a Nine Judge Bench in the case of JINDAL STAINLESS LTD. AND ANR. VERSUS STATE OF HARYANA AND ORS. 2016 (11) TMI 545 - SUPREME COURT the impugned judgment of the High Court is set aside and it is held that the Tamil Nadu Entry Tax Act is a valid enactment. However it is made clear that insofar as period from 27.03.2002 to 01.04.2007 is concerned the State of Tamil Nadu shall not realise the entry tax from the respondent(s) with regard to Tobacco product as for this period levy is found to be discriminatory in nature qua the aforesaid product. Appeal disposed off.

Summary

The Supreme Court held that the Tamil Nadu Entry Tax Act is valid. However, entry tax for Tobacco products between 27.03.2002 to 01.04.2007 is discriminatory and should not be collected by the State of Tamil Nadu from the respondents. The appeals are disposed of accordingly.