TaxTMI 
TaxTMI 
2006 (11) TMI 554
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....x shall be paid by every importer of such goods. The entry tax payable by an importer under this Act shall be charged on the purchase value of the goods specified in the Schedule at the rates as shown in the said Schedule: Provided that no such tax shall be payable on the entry of the goods which are meant or the exclusive use or consumption of the Defence Department of the Government of India: Provided further that no entry tax shall be levied on the entry of the goods into any local area for consumption or use therein which are the exclusive property of the Union Government. Provided also that no such tax shall be payable on the entry of such goods which are brought for the purpose of sale or use under the Assam Public Distribution of Articles Order, 1982. Provided further more that no tax shall be levied under this section on the entry of Scheduled goods into a local area, if it is proved to the satisfaction of the assessing authority in such manner as may be prescribed, that such goods have already been subjected to entry tax or that the entry tax has been paid by the importer or any other person under the Act in respect of the same goods. (3) The State Government m....
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....imported sophisticated equipments from outside the country for these diagnostic clinics. Hospital equipments of all types including X-Ray, Ultrasound, Doppler and Scanning machine, other medical and diagnostic apparatus, parts and accessories thereof were all subjected to levy under the Act at the rate of eight paise in a rupee, vide Notification No. FTX. 146/2001/5, dated 8.1.2002, by insertion of Entry-3 to the list of taxable goods. The said entry was inserted in exercise of the powers contained under Section 3(4) of the AET Act. It is in these circumstances that the petitioners have not only challenged the vires of the Assam Entry Tax Act, 2001, but also the notification, dated 8.1.2002, aforementioned. 6. I have heard Dr. B.P. Todi and Mr. M.K. Choudhury, learned senior counsels, appearing for the petitioners, and Mr. K.N. Choudhury, learned Addl. Advocate General, Assam, for the respondents. 7. Dr. B.P. Todi and Mr. M.K. Choudhury, learned senior counsels, appearing on behalf of the petitioners, submit that in imposing entry tax on the goods imported from outside the country to the local area, the State has transgressed the specific prohibition imposed by the Constitution o....
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.... purchase of goods, other than newspapers; but the Constitution gives exclusive legislative jurisdiction to the Union to levy tax on import and export by virtue of Entry 92 (a) of List I of the said Schedule. Article 286 imposes limitations upon the powers of the State to enact sales tax legislation in respect of goods, which are imported into, or exported out of, the territory of India by laying down that no tax shall be imposed on sale or purchase, which takes place outside the State, and no tax shall be imposed on sale or purchase, which takes place in the course of import into, and export out of, the territory of India. Clause (1)(b) of Article 286 prevents a State from levying a sales tax on sale in the course of import into/or export out of, the territory of India so as not to interfere with legislative powers of the Union with respect to import and export across the customs frontier (Entry 41 of List I) and customs duties including export duties (Entry 83 of List-I). Article 286, thus, aims at ensuring that the sales tax imposed by a State does not interfere with the import of goods into, or export of goods out of, the territory of India. 11. The Apex Court has clarified, i....
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....te. Section 4 of the Central Sales Tax Act provides as to when a sale or purchase of goods takes place outside the State. Section 3 of the Central Sales Tax Act provides as to when a sale or purchase of goods can be said to have taken place in the course of inter-State trade or commerce. There is no dispute that the State has no power to levy tax, when the sale or purchase of goods takes place in the course of inter-State trade or commerce. When the goods enter into a local area from outside the State pursuant to a sale, the same amounts to an inter-State sale and purchase and the State has no power to impose levy on such sale or purchase. If the contention of the petitioners is accepted, then, the State cannot have any power to levy entry tax, on the entry of the goods into any local area from outside the State, which may be brought into the State by virtue of sale and purchase thereof and the same thereby will also be hit by Article 286(1)(a) of the Constitution of India. But since the restrictions, imposed by Article 286, are only on the levy of tax on the sale and purchase of goods, the State is competent, to levy entry tax by virtue of Entry 52 of List II of the Seventh Schedu....
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....then, the court has to choose that meaning, which would represent the true legislative intent. In Tarulata Shyam v. CIT and Ors. [1977] 108 ITR 345 (SC) the Apex Court has clarified the law, in this regard, thus: To us, there appears no justification to depart from the normal rule of construction according to which the intention of the Legislature is primarily to be gathered from the words used in the statute. It will be well to recall the words of Rowlatt, J, in Cape Brandy Syndicate v. IRC at. p. 71, that "in a taxing Act one has to look merely at what is clearly said. There is no room for any intendment. There is no equity about a tax. There is no presumption as to a tax. Nothing is to be read in, nothing is to be implied. One can only look fairly at the language used." Once it is shown that the case of the assessee comes within the letter of law, he must be taxed, however, great the hardship may appear to the judicial mind to be. 17. In Polestar Electronic (P.) Ltd. v. Additional Commissioner, Sales Tax, reported in [1978] 3 SCR 98, the Apex Court held that if the language of a statute is clear and explicit, effect must be given to it, for, in such a case, the words best dec....