Entry tax liability crystallises on entry for use, and later export does not undo the completed tax event.

Entry tax on machinery arose when scheduled goods were brought into a local area for use during the relevant assessment year; foreign origin did not create any exemption. The taxable event was complete on entry and use, so liability crystallised in that year under the old regime. Subsequent export of the machinery in a later assessment year did not extinguish or override the completed levy, because each assessment year is a separate unit and later export is not an automatic ground for reversal or refund. The final conclusion was that the earlier entry tax liability remained unaffected by the later export.

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Issues: (i) Whether machinery imported from outside India and brought into the local area for use during the relevant assessment year was liable to entry tax under the old entry tax regime. (ii) Whether subsequent export of the machinery in a later assessment year could extinguish or override the entry tax liability already arisen for the earlier assessment year under the new entry tax regime.

Issue (i): Whether machinery imported from outside India and brought into the local area for use during the relevant assessment year was liable to entry tax under the old entry tax regime.

Analysis: The charging provision under the old regime imposed tax on entry of scheduled goods into a local area from outside that local area for consumption, use or sale therein. The machinery fell within the taxable schedule and was brought into the local area for use. The fact that the goods had originated outside India did not create any exemption from the levy. The import-based objection was answered against the assessee in the governing precedent relied upon by the Court.

Conclusion: Liability to entry tax arose on the entry of the machinery into the local area for use, and the objection based on foreign origin failed.

Issue (ii): Whether subsequent export of the machinery in a later assessment year could extinguish or override the entry tax liability already arisen for the earlier assessment year under the new entry tax regime.

Analysis: Each assessment year is a separate unit for entry tax purposes, and the taxable event must be assessed with reference to the year in which it occurs. The later export of the machinery took place after the close of the relevant assessment year and was unrelated to the completed taxing event. The statutory scheme also treated reversal or refund as a separate matter, not as an automatic consequence of later export. The exemption language relied upon did not assist because the tax liability had already crystallized when the machinery was brought into and used in the local area.

Conclusion: The later export did not wipe out the tax liability that had already crystallized for the earlier assessment year.

Final Conclusion: The revision failed because the entry tax liability had accrued when the machinery entered the local area for use during the relevant assessment year, and the subsequent export did not affect that completed liability.

Ratio Decidendi: In entry tax matters, the taxable event is complete when scheduled goods enter the local area for consumption or use, and a later export or resale in another assessment year does not alter the liability that has already crystallized for the relevant assessment year.

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