Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2018 (10) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (10) TMI 1526 - HC - VAT and Sales TaxInterpretation of statute - Liability of Entry tax - SIM Cards - whether a dealer registered under the VAT Act, 2002 is only liable to pay Entry tax u/s 3(1) of the Entry Tax Act - Held that:- The Madhya Pradesh Legislature has brought the Entry Tax Act in order to levy a tax on entry of goods into a local area of Madhya Pradesh for consumption, use or sale therein. Before coming into force of Entry Tax Act w.e.f. 2.10.1976, all local authorities used to collect Octroi on entry of any goods within their local area - if the goods brought into the local area from outside the State for consumption, use or sale, the same is subjected to payment of Entry Tax as per value of the goods. Hence, the goods brought not only for its sale but consumption and use is also material eventuality for payment of entry tax. It is also immaterial that who is bringing the good within the local area - Entry tax is payable once either u/s. 3(1) or u/s. 3(2) of the Entry Tax Act by dealer or any person. Whether the Assesse being service provider not a dealer is liable to pay Entry Tax u/s. 3(1) or u/s. 3(2) of the Entry Tax Act? - Held that:- The Division Bench of this Court in the case of Sanjay Trading Co. V/s. Commissioner of Sales Tax & others [1994 (2) TMI 284 - MADHYA PRADESH HIGH COURT], had held that M.P. Entry Tax Act is intended to levy Entry Tax on entry of specified goods into the local area for consumption, use or sale. The Entry Tax is not a tax on goods, but a tax on entry of goods into the local area for particular purpose. The Entry Tax is not a part and parcel of VAT Act, where a dealer who is covered under the VAT Act is only liable to pay Entry Tax. Any businessman who brings the goods for consumption, use or sale is liable to pay Entry Tax whether he is a dealer under the VAT Act or not because, provisions of u/s. 3(2), are applicable to such person who is not engaged in any business and simply brings the goods within the local area for any purpose. Section 3(1) is applicable to those persons who are engaged in the business and effecting entries of the goods in the local area for use, sale and consumption in his course of business - the Assesse is covered under the provisions of Section 3(1) of Entry tax Act. Levy of Entry tax on sale of SIM Cards - Held that:- Since, the SIM Card is being used and consumed in the course of business of service. Hence, it will fall under the incidence of Taxation under Section 3(1) of the Entry Tax Act - In case of Maheshwari Fish Seed Farm v. T.N. Electricity Board, [2004 (4) TMI 632 - SUPREME COURT], the Apex court has held that the definition of the term in one statute does not afford a guide to the construction of the same term in another statute and the sense in which the term has been understood in the several statutes does not necessarily throw any light on the manner in which the term should be understood generally - SIM cards can be termed as ‘goods’ for the purposes of Entry Tax as the same is being used and consumed in order to provide service to the customer by the Assesses. Petition dismissed - decided against petitioner.
|