TaxTMI 
TaxTMI 
2019 (9) TMI 519
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....9.2015. The notice alleges that statutory returns in terms of the Entry Tax Act had not been filed and called upon the petitioner to do so disclosing the purchase turnover of the vehicles and pay entry tax at 12.5% as required. 3. The petitioner filed a reply dated 15.10.2015 stating that it was unaware of the provisions of the Entry Tax Act and had come to be informed of the same only in the course of an investigation conducted by the Enforcement Wing on 18.09.2015. The inspection had been uneventful otherwise and no difference of stock or purchase/sales omission had been noticed by the Officer. The petitioner stated that it had filed returns under the VAT Act offering sale turnover to tax at 14.5% and thus had paid sales tax in excess. It relied on the provisions of Section 4 of the Entry Tax Act that provided for a set off of excess entry tax against the sales tax liability. 4. Placing reliance on a decision of the learned single Judge in the case of Tvl. Kasi and Sethu V. Deputy Commercial Tax Officer ((2003) 131 STC 73), the petitioner prayed that the sales tax paid by it be reckoned and adjusted towards the liability for entry tax as well. The details of transactions ye....
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.... the entry tax paid against VAT liability. Such a concession cannot be claimed as a vested right by the petitioner, that too, in the converse. Moreover, being a concession, the provisions would have to be construed strictly and hence cannot be expanded to beyond what is offered therein. He relies, in this regard, upon two judgments in the case of Jayam and Company V. Assistant Commissioner and another ((2016) 15 SCC 125) and TVS Motor Company Ltd. V. State of Tamil Nadu and others ((2018) 59 GSTR 1). 8. He urges that the Court notice a correlation called for by Section 4 of the Entry tax Act, between the vehicle in respect of which the Entry tax is remitted and the vehicle in respect of which credit for payment of VAT is sought. According to him, there has to be a one-to-one correlation established in this regard for the dealer to avail the benefit of set-off under Section 4. As far as the case law in Kasi and Sethu (supra) is concerned, he distinguishes the case on facts, confirming however that the decision has attained finality and has not been carried in appeal. 9. Reliance is placed on the judgment of the Supreme Court in Punjab Tractors Limited V. Commissioner of Centra....
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....t of entry of the goods into the State and credit available for set-off. 14. In the present case, there is, admittedly, a violation of statutory provisions insofar as the petitioner has not filed returns under the Entry tax Act. I am of the view that the excuse offered, of ignorance of law, does not constitute valid justification for non-compliance of statutory duties. That is one aspect of the matter. The other aspect is, that VAT liability of a higher percentage than entry tax, has admittedly been remitted by the petitioner. 15. The crucial aspect, in my view, is the timing of the two remittances. A return of entry tax is due on or before the 20th of a month immediately succeeding such taxable event accompanied by proof of payment of entry tax in terms of section 7 of the Entry Tax Act read with Rule 3(2) of the Tamil Nadu Tax on Entry of Motor Vehicles Rules, 1990 (in short 'Rules'). 16. The return of turnover in terms of VAT Act shall be filed under section 21 read with Rule 7(1)(a) of the Tamil Nadu Value Added Tax Rules, 2007 on or before the 20th of the succeeding month. Since both entry tax as well as VAT returns are due on or before 20th of the succeeding month, a....
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....he State but had been sold interstate, the turnover from such inter-state sale would not be available for grant of credit for payment of Entry tax. Thus, a correlation qua vehicle has to be furnished by the assessee to establish that entry tax paid and VAT credit sought, are in respect of the same vehicle. This exercise is required for acceptance of the claim under Section 4. 22. In this case, neither the objections filed by the petitioner before the officer nor the Writ affidavit provide details of such correlation. In the absence of the factual particulars as to (i) when a particular/identified vehicle entered the State of Tamil Nadu (ii) when such vehicle was sold and (iii) whether such sale was intra or inter-state, the claim of the assessee for set-off under section 4 cannot be granted merely for the asking. 23. The transactions in this case cannot be said to be automatically revenue neutral, since, as I have noted in the paragraphs above, if there is an elapse of time between the entry and sale of the vehicle, nonpayment of entry tax will result deferment/postponement of the liability, till such time the vehicle is ultimately sold. Even then, if the sale was not domesti....