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2016 (5) TMI 828

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..... directly imposed. Here, entry tax has been imposed under the Act of 1976 on the entry of goods into the local area for consumption, use or sale by the petitioners who are said to be dealers under the Act of 1976. By applying the decision of Supreme Court in the case of Senior Divisional Mechanical Engineer v. State of Orissa and others, the mandate under Article 285 of the Constitution of India does not extend to the taxes leviable for entry of goods into the local area and entry tax cannot be called as a tax directly imposed upon the income or property of the Union as taxable event under the Orissa Entry Tax Act, 1999 is on the entry of scheduled goods into the local area and not on the goods itself. Therefore, the petitioners are not .....

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..... -section (31) of Section 2 of the Railways Act, 1989, and also the provisions contained in sub-section (32A) of Section 2 of the Railways Act, 1989, by Act 47 of 2005 with effect from 30-8-2006. Therefore, the assessment made and the entry tax imposed on the petitioners are liable to be quashed. 2.2) The State/respondents No.1, 3 and 4 have filed return opposing the writ petition stating inter alia that by virtue of Section 3 of the Act of 1976, goods brought by any of the dealers into the local area for consumption, use or sale therein, entry tax would be chargeable. It has been stated that the taxable event will be the entry of goods into a local area which will occasion the levy of entry tax. Indirect tax is distinguishable from direc .....

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..... for the State/respondents No.1, 3 and 4, would submit that the writ petition as framed and filed is not maintainable in law, as the order Annexure P-3 passed by the Commercial Tax Officer is an appealable order and the order Annexure P-4 passed under the provisions of the Commercial Tax Act and the Value Added Tax Act is also appealable or revisable and therefore the writ petition as framed and filed is not maintainable. He would further submit that Article 285 of the Constitution of India is not attracted in the facts of the case as by virtue of clause (1) of Article 285, only the property of the Union is exempted from the tax imposed by a State or by any authority within a State. Neither the petitioners are Union of India nor they are ho .....

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..... xation.-(1) The property of the Union shall, save in so far as Parliament may by law otherwise provide, be exempt from all taxes imposed by a State or by any authority within a State. 8. On a careful perusal of the above-stated provision, it would appear that the property of the Union is exempted from all taxes imposed by the State or by any authority within the State. It is a direct tax as Article 285 of the Constitution of India is intended to protect public revenues and Article 285 does not apply when the property that is to be taxed is not of the Union of India. (See M/s. Electronics Corporation of India Ltd. etc. etc. v. Secretary, Revenue Department, Govt. of Andhra Pradesh and others etc. etc. AIR 1999 SC 1734 .) 9. Submissi .....

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..... n income as against indirect tax on manufacture of goods or entry of goods into the local area or sales tax and observed as under: - The above extract is taken from the judgment of this Court reported in (1964 (3) SCR 787) (supra) which has been re-iterated in the judgment of the Constitution Bench of this Court in the case of N.D.M.C. Vs. State of Punjab Others (1997 (7) SCC 339) (paras 147, 153, 163 and 179). It may be re-iterated in subsequent judgments too wherein the same view is taken but we do not wish to burden our present judgment with subsequent judgments. Suffice it to state that there is a difference between direct tax on property and on income as against indirect tax on manufacture of goods or entry of goods into t .....

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..... Engineer (supra) and applicability of Section 184(1) of the Railways Act, 1989 in the light of Section 3 of the Orissa Entry Tax Act, 1999 which is pari materia to Section 3 of the Act of 1976, has been answered by holding that the words any tax in Section 184 of the Railways Act, 1989 is required to be read in the context of Article 285 of the Constitution and is required to be understood as any tax on property or income as a direct tax, and observed as under: - A bare reading of these two provisions quoted above, indicates the difference between the chargeability on one hand and collection and distribution of tax on the other hand. On reading the provisions of 1999 Act it is clear that Octroi Duty was levied by the Municipalitie .....

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