Entry tax exemption for SEZ imports was confirmed, and the assessment order and demand notices ceased to survive.

Goods imported into a Special Economic Zone unit for authorised operations were held eligible for exemption from entry tax under the West Bengal Special Economic Zone Act, 2003, after the competent authority confirmed the exemption under Section 27(i) read with Section 30. Once that administrative determination was made, no live controversy remained on the levy, so the assessment order and related demand notices could not survive. Any separate question about goods not actually entering the SEZ was left to be examined by the department in appropriate proceedings.

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Issues: Whether goods imported into a unit situated in a Special Economic Zone for authorised operations were entitled to exemption from entry tax under the West Bengal Special Economic Zone Act, 2003, and whether the assessment order and demand notices could survive after the administrative decision granting such exemption.

Analysis: The competent authority, in compliance with the earlier direction, determined that the goods imported into the unit located in the Falta Special Economic Zone for authorised operations were eligible for exemption from entry tax under Section 27(i) read with Section 30 of the West Bengal Special Economic Zone Act, 2003. Once that decision was taken, there remained no live controversy requiring further adjudication on the levy. The Court also noted that any future inquiry by the department regarding goods not entering the SEZ would be a matter for the department to examine in appropriate proceedings.

Conclusion: The exemption claim was accepted and the assessment order ceased to survive, along with the demand notices.

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