Notified entry tax rate for explosives under a special local-area scheme prevails over the general rate under the Act.

Explosives notified under Section 4-A of the Chhattisgarh Entry Tax Act in specified local areas were governed by the rate fixed in that notification, not by the general rate under Section 4. Section 3 identifies entry into a local area as the charging event, Section 4 sets the ordinary rate, and Section 4-A creates a separate scheme for notified goods used mainly in manufacture, permitting the State to prescribe both the goods and an enhanced rate by notification. Where the 27-07-2006 notification covered explosives and fixed the applicable rates, and the notification remained unchallenged, the authorities were bound to apply that notified rate and could not revert to the general rate.

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Issues: Whether, after explosives were notified under Section 4-A of the Chhattisgarh Entry Tax Act, 1976 for specified local areas, entry tax had to be levied at the rate fixed in that notification and not at the general rate under Section 4 of the Act.

Analysis: Section 3 of the Entry Tax Act makes the entry of scheduled goods into a local area the charging event, while Section 4 prescribes the ordinary rate of tax. Section 4-A creates a distinct scheme for goods used or consumed mainly in manufacture in notified local areas and authorises the State Government to specify both the goods and the enhanced rate by notification, overriding Section 4. The notification dated 27-07-2006 specifically covered explosives and fixed the rate at 6% and 10% in the relevant situations. Once such a notification was in force and was not challenged, the authorities were bound to apply the notified rate. The authorities' reliance on the manufacture issue and the cited precedents did not displace this statutory scheme.

Conclusion: The reference was answered in favour of the Revenue. The notified rate under Section 4-A applied to explosives, and the general rate under Section 4 could not be invoked.

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