TMI Blog2008 (8) TMI 927X X X X Extracts X X X X X X X X Extracts X X X X ..... 08 O R D E R Leave granted This batch of Civil Appeals filed by the Railways is directed against the impugned judgment and order dated 12th April, 2007 passed by the Orissa High Court in Writ Petition (c) No. 3848 of 2006 etc. By the impugned judgment the High Court has held that the Entry Tax under Orissa Entry Tax Act, 1999 is not a tax directly imposed on the income or property of the Union: that on conjoint reading of Articles 285 and 289 of the Constitution the immunity granted is confined to taxes directly on income or on property: that such immunity does not extend taxes leviable on entry of goods into a local area and that the Entry Tax cannot be called a tax directly imposed on the income or property of the Union as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e that as far back as 1963, vide Presidential Reference, the Constitution bench of this Court was required to consider Parliament's power to levy duties under Sea Customs Act and Central Excise Act on the goods belonging to the State. At page 815, after examining the Scheme of Articles 285 and 289, this Court held as follows: We are, therefore, of opinion reading Article 289 and its complementary Article 285 together that the intention of the Constitution makers was that Article 285 would exempt all property of the Union from all taxes on property levied by a State or by any authority within the State while Article 289 contemplates that all property of the States would be exempt from all taxes on property which may be leviable by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts 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 the local area or sales tax. This dichotomy needs to be kept in mind of Constitutional Scheme and Article 285 and 289 of the Constitution. In our view, the afore-stated judgment of this Court in Presidential Reference and in NDMC's Case (supra) squarely applies to the facts of the present cases. Therefore, we see no reason to interfere with the impugned judgment of the Orissa High Court on this aspect. As regards the interpretation of Section 184 of the R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich a great reliance is placed on behalf of the appellants falls in Chapter V which is miscellaneous Chapter dealing with the maintenance of accounts by dealers, transportation of goods by road through states, issuance of transit passes and collection and disbursement of taxes etc. Therefore Section 36 does not deal with levy but with collection + disbursement of tax. We quote herein below section 3(1) as well as section 36 of the 1999 Act. Section 3 (1): There shall be levied and collected a tax on entry of the scheduled goods into a local area for consumption, use or sale therein at such rate not exceeding twelve percentum of the purchase value of such goods from such date as may be specified by the State Government and different ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scavenging of railway premises, or for any other service which the local authority may be rendering or be prepared to render to the railway administration. 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 Municipalities under the local enactments. In the present cases that local enactment was Orissa Municipal Act (vide Section 131 (kk)). That sub-section (kk) clearly indicate that Octroi Duty was duty on the goods brought within the limits of Municipal area for consumption, use or sale therein. Section 131 of the Orissa Municipal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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