TMI Blog2019 (9) TMI 953X X X X Extracts X X X X X X X X Extracts X X X X ..... , with reference to that assessment year only. The legal basis of the claim raised by the assessee is found non-existent. There is nothing to doubt the existence of the tax liability and its crystallization at the end of the A.Y. 2000-01. It also did not get diluted or wiped out upon occurrence of export of the machinery, in subsequent assessment year. Thus, the factual and legal basis of the claim raised by the assessee having arisen more than three years after the close of the assessment year 2000-01, the same is wholly unfounded. The taxable event occurred in and tax liability arose upon the assessee having caused the entry of machinery for use in the local area Allahabad, during the A.Y. 2000-01. It got crystallized on 31st March, 2001. The event of subsequent export of machinery outside the country during the A.Y. 2004-05, had no bearing on the unit of assessment being the A.Y. 2000-01. Revision dismissed. - Sales/Trade Tax Revision No. - 236 of 2006 - - - Dated:- 16-9-2019 - Saumitra Dayal Singh, J. For the Revisionist : K.N. Kumar For the Opposite Party : C.S.C. ORDER SAUMITRA DA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claimed that the entry of that machinery into the local area Allahabad during the assessment year 2000-01 was non-taxable, since the machineries had not been brought into the local area, Allahabad from within the country but from outside the country. That claim was rejected. During the pendency of the present revision, the U.P. Tax On Entry of Goods Into Local Areas Act, 2007 (hereinafter referred to as a New Act) was enforced. The assessee has thus relied on the provisions of Section 4(6)(ii) of the New Act to contend that in any case, upon export of the disputed machinery, no tax liability survived as sub-section 6 of Section 4 overrides the charging provisions under Section 4(1) and 4(3) of the New Act. 6. Also, it has been submitted, for the purposes of export of machinery, no time limit is prescribed under sub-clause (ii) of sub section 6 of Section 4 of the New Act. Therefore, the fact that the assessee exported the machinery later i.e. during the A.Y. 2004-05, was inconsequential to the claim made by the assessee. Reliance has been placed on a decision of a Supreme Court in the case of Polestar Electronic (Pvt.) Ltd. Vs. Additional Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... machineries were exported outside the country after close of that assessment year, would have no bearing on the tax liability for the A.Y. 2000-01. He has relied on the decision of the Supreme Court in the case of Director of Entry Tax and others Vs. Mahindra and Mahindra and another J.T. 2001 (5) S.C. 544. 9. Having heard learned counsel for the parties and having perused the record, in the first place, under the Old Act, the charging Section was contained in Section 4. It read as below: 4. Levy of Tax.- (1) There shall be levied and collected a tax on entry of any goods specified in the Schedule into a local area from any place outside that local area including a place outside the U.P./Uttaranchal for consumption, use or sale therein, at such rates not exceeding five per cent of the value of the goods as may be specified by the State Government by notification and different rates may be specified in respect of different goods or different classes of goods: Provided that the State Government may by notification amend the schedule and upon issue of any such notification, the schedule shall, subject to the provisions of sub-se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Legislature/Assembly may during the said period agree to make, so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done thereunder except that any imposition, assessment, levy or collection of tax or penalty shall be subject to the said modification or annulments. 10. Also, under the schedule to that Act, machinery valuing more than 10 lacs was clearly under taxable. Thus, the levy of tax on entry of machinery (valued at more than 10 lacs) arose, no sooner the assessee caused the entry of those goods into the local area Allahabad from outside that local area for use. Under the Old Act, the subsequent Act of export of the machinery out of the country, was wholly irrelevant and had no bearing on the tax liability that had otherwise arisen and got finally attached to the transaction upon causing entry of such machinery inside the local area, for use. For the purposes of clarity, it has to be stated that no provision of the nature contained in Section 4(6) of the Act (New Act) existed under the Old Act. 11. In so far as it has been contended that no liability of entry tax arose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... New Act is concerned, Section 4 (1), (3) and (6) of that Act read as below: Section 4. Levy of tax: (1) For the purpose of development of trade, commerce and industry in the State, there shall be levied and collected a tax on entry of goods specified in the Schedule into a local area for consumption, use or sale therein, from any place outside that local area, at such rate not exceeding five percent of the value of the goods as may be specified by the State Government by notification and different rates may be specified in respect of different goods or different classes of goods; Provided that the State Government may by notification amend the schedule and upon issue of any such notification, the Schedule shall, subject to the provisions of sub-section (10), be deemed to be amended accordingly. (3) The tax levied under sub-section (1) shall be payable by a dealer who brings or causes to be brought into the local area such goods, whether on his account or on the account of his principle or takes delivery or is entitled to take delivery of such goods on its entry into a local area. Provide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a self-contained unit and in the case of a trading adventure the 14. profits have to be computed in the manner provided by the statute 14. Same principle is applicable in this case case as well. Thus tax liability may arise in each unit/assessment year only with respect to taxable event/transaction completed therein. The same has to be assessed for that assessment year. Also, it has to be discharged or recovered, as the case may be, with reference to that assessment year only. 15. Of its own, neither that taxable event nor the tax liability arising thereon continue, cascade or escape or telescope into the following year. Unless specifically provided by the legislature or necessarily implied, subsequent facts or events arising in preceding or succeeding assessment years, have no bearing on either the taxable event or the consequent tax liability that may arise during any assessment unit/year. Such legislature intent and necessary intendment do not exist. For that reason, the subsequent event of export of machinery during the A.Y. 2004-05 (after it had been made use of during A.Y. 2000-01), would not have any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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