Entry tax assessment without statutory return is impermissible absent express statutory power, and the demand was set aside.

The Madras HC considered whether an importer could be assessed to entry tax without filing the statutory return and whether the writ court should insist on an alternative remedy. The court declined to relegate the appellant to the alternative remedy, noting the long pendency of the writ appeal and proceeding to decide the matter on merits. It held that the entry tax scheme contained no express provision authorising assessment or demand where no return had been filed under Section 7, and Section 8 operated only on the basis of a furnished return. In the absence of an express assessment mechanism, the demand was impermissible and was set aside.

---

---

Issues: (i) Whether the appellant should be relegated to the alternative remedy under the entry tax enactment. (ii) Whether entry tax could be assessed and demanded in the absence of a return filed under the Act.

Issue (i): Whether the appellant should be relegated to the alternative remedy under the entry tax enactment.

Analysis: The writ appeal had remained pending for a long period, and the refusal to entertain the writ petition on the ground of alternative remedy was not considered appropriate to be repeated at the appellate stage. In these circumstances, the matter was taken up for decision on merits.

Conclusion: The appellant was not relegated to the alternative remedy.

Issue (ii): Whether entry tax could be assessed and demanded in the absence of a return filed under the Act.

Analysis: The statutory scheme was held to contain no express provision enabling assessment of an importer who had not filed the return required under Section 7. Section 8 was understood as operating on the basis of a return furnished and did not authorise assessment and demand long after import where the return was absent. In the absence of an express charging or assessment mechanism for such a situation, demand of entry tax was impermissible.

Conclusion: Entry tax could not be assessed or demanded from the appellant in the absence of a return.

Final Conclusion: The writ appeal succeeded, the demand was set aside, and the writ petition was allowed.

Ratio Decidendi: A taxing authority cannot assess and demand entry tax from an importer who has not filed the statutory return unless the enactment expressly confers power to do so.

---