Entry tax on goods entering a local area applies even to internal transfers; fresh factual pleas cannot be raised late.

Entry tax under the Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976 is attracted by the entry of specified goods into a local area for consumption, use or sale, even where the goods are brought from the assessee's own divisions. The charging provision depends on entry into the local area, while references to goods being "acquired or obtained" relate to valuation rather than the charge itself. A plea that the goods had not entered the local area, raised for the first time before the Tribunal, was not entertainable because it required factual investigation and lacked a proper foundation before the lower authorities.

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Issues: (i) Whether pulp brought into the local area by the assessee from its own divisions was exigible to entry tax under the Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976; (ii) Whether a plea that goods had not entered the local area, raised for the first time before the Tribunal, could be entertained when it required investigation of facts.

Issue (i): Whether pulp brought into the local area by the assessee from its own divisions was exigible to entry tax under the Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976.

Analysis: The charging provision makes entry tax payable on entry, in the course of business, of specified goods into a local area for consumption, use or sale. The expressions dealing with "acquired or obtained" occur in provisions relating to valuation and not to the charge itself. The levy is attracted by entry into the local area and its character as a substitute for octroi supports that construction.

Conclusion: The pulp brought into the local area was exigible to entry tax, and the issue is answered against the assessee and in favour of the Revenue.

Issue (ii): Whether a plea that goods had not entered the local area, raised for the first time before the Tribunal, could be entertained when it required investigation of facts.

Analysis: A new plea may be entertained at a later stage only where it is purely legal and does not depend on proof of disputed facts. Here, the plea whether the goods had actually entered the municipal limits required factual investigation and had no proper factual foundation before the lower authorities. Such a contention could not be allowed for the first time in second appeal.

Conclusion: The Tribunal was right in refusing to entertain the plea, and the issue is answered against the assessee and in favour of the Revenue.

Final Conclusion: Both referred questions were answered in the affirmative, upholding the levy and the Tribunal's refusal to entertain the fresh factual plea.

Ratio Decidendi: Entry tax is attracted by the entry of specified goods into the local area for consumption, use or sale, and a new contention depending on investigation of facts cannot be raised for the first time in second appeal without an appropriate factual foundation.

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