TMI Blog1999 (9) TMI 991X X X X Extracts X X X X X X X X Extracts X X X X ..... AZDA 929 four door station Wagon 2000 CC. cars. The cars were purchased in Japan and were imported to India. A customs clearance permit was issued by the Additional Chief Controller of Imports and Exports on 6-2-1990 and the same was issued under the Imports and Exports (Control) Act, 1947. The cars arrived on 17-3-1990 and bill of entry was filed on 26-3-1990. The cars were also cleared by paying a customs duty of ₹ 6,40,534 per car and in addition a bond for ₹ 2,04,173 was also executed. 3. It is stated that the Tamil Nadu Legislature has enacted the Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990 (Act 23 of 1990) (hereinafter referred to as 'the Act'), with a view to curb the evasion of sales tax on the sale of Motor Vehicles, which are purchased outside the State and brought into the State of Tamil Nadu. It was not the intention of the Legislature to impose an entry tax when a vehicle was brought into India from another country. The question of sales tax would not arise in such a case because there is no purchase of such a vehicle in another State which levies sales tax at a lower rate than levied by the State of Tamil Nadu. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tated the entry tax would be imposable even in respect of vehicles which are purchased outside India and brought into Tamil Nadu. The taxable event will, therefore, include import from other countries for which the custom duty is also attracted on entry into local areas of a State in Tamil Nadu. Therefore, the contention of the petitioner that imposition of entry tax would amount to customs duty is not correct. The entry tax is not levied on a sale in the course of import. The taxable event under Section 3(1) is the entry of any motor vehicle into any local area of the State of Tamil Nadu for use or sale therein. There is no violation of Article 14 of the Constitution or any other provisions. On these averments, they prayed for the dismissal of the writ petition. 6. In the light of the above pleadings, I have heard. Mr. Vijay Narayan, learned counsel for the petitioner and Mr. A. Chandrasekaran learned Government Advocate (Taxes) for the respondents. 7. Mr. Vijay Narayan, learned counsel for the petitioner after taking me through the entire provisions of the Act and the Rules made thereunder would contend that the object and provisions of the Act never Int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or use or sale therein. Section 2(g) : importer means a person who brings a motor vehicle into a local area from any place outside the State for use of sale therein, and who owns the vehicle at the time of its entry into the local area. Section 2(1) : Motor vehicle means a motor vehicle as defined in Clause (28) of Section 2 of the Motor Vehicles Act, 1988 . Section 3 : Levy of Tax-- (1) Subject to the provisions of this Act, there shall be levied and collected a tax on the entry of any motor vehicles into any local area from use of sale therein which is liable for registration, or for the assignment of a new registration mark, in the State under the Motor Vehicles Act, 1988 (Central Act 59 of 1988). The rate of tax shall be at such rate or rates, not exceeding twenty per cent, as may be fixed by the Government by notification, on the purchase value of the motor vehicles. Provided that in respect of any motor vehicle which was registered in any Union Territory or any other State under the law relating to Motor Vehicle :-- (a) before the 10th September, 1996, no tax shall be levied and collected, if the owner of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tate. Whether the motor vehicle purchased outside the State or in any foreign country, whenever the vehicle enters the local area of this State, the same is liable to pay entry tax. It is therefore, applicable to purchases within India in other States and also from foreign countries. In other words, the present claim of entry tax has nothing to do with the import of motor vehicles from foreign countries and payment of custom duty. In order to curb the evasion of sales tax on the sale of motor vehicles from which are purchased out of the State and brought into the State, the said enactment was made and tax on the entry of motor vehicle into the local areas of this State, either for use or sale therein, which is. liable for registration in the State under the Motor Vehicles Act, 1988 or impose tax under Section 3(1) of the Act, the charging Section, which is very clear and the State Legislature alone is competent to enact the impugned Act. Accordingly, I reject the contra made by the learned counsel for the petitioner. 12. Regarding the contention that Section 3(1) proviso and Section 4(2) are hit by Article 14 of the Constitution, it is seen from these provisions that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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