TaxTMI 
TaxTMI 
2019 (9) TMI 953
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....ay wired bridge over the river Yamuna, at Allahabad. For the purposes of executing that contract, the assessee imported into the country and the local area, Allahabad, machineries of value Rs. 1,30,30,000/-, during the A.Y. 2000-01. The machinery thus imported were amenable to levy on entry tax under the U.P. Tax on Entry of Goods Act 2001 (hereinafter referred to as Old Act). The assessee, at the relevant time, also deposited entry tax on such machinery. Undisputedly, it made use of those machinery in execution of aforesaid contract awarded to it. After its successful completion, the assessee sold those machineries in the course of export trade to a purchaser at South Korea. 4. Though the revision was admitted without reference to any question of law, however, at the time of hearing the following questions of law have been pressed: "(i) Whether under the facts and circumstances mentioned above, the learned Trade Tax Tribunal Bench, Allahabad was correct in applying Section 4, and read with the Explanation appended thereto (added by amending Act 10 of 2005)? (ii) Whether machinery imported from outside India during A.Y. 2000- 2001 are covered by Section 4 of....
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....ct, (that has been enforced with full retrospective effect), the claim made by the assessee is wholly unfounded. With reference to the Old Act, it has been submitted, it was the clear scheme of the Old Act to impose entry tax upon entry being caused of taxable goods, into any local area, for their consumption, use or sale therein. There was neither any exemption granted to goods that had been imported from outside the country and thereafter brought into the local areas for such purpose, nor there was any scheme to grant remission from tax paid on such goods. In the admitted facts of the case, the assessee brought into the local area Allahabad, machinery that fell within the description of taxable goods under the schedule of the Old Act, for its own use. The requirements, for the charge of tax to arise, were thus fulfilled. Tax had been rightly imposed. 8. In the context of the New Act, learned Standing Counsel would submit though under that Act, sub-section 6 of Section 4, overrides Section 4 (1) and Section 4 (3), yet clearly, tax liability would continue to exist on such goods as may have been consumed, used or sold within the local area where such goods may have been brought ....
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....he State Government may be notification, specie in that behalf either in respect of all dealers in any goods or in respect of a particular class of such dealers: Provided that provisions of this sub-section shall not apply in respect of value of the goods brought into a local area from outside Uttar Pradesh/Uttaranchal. (4) Notwithstanding anything contained in sub-section (1) or subsection (2), no tax shall be levied on and collected from a dealer who brings or causes to be brought into a local area any goods in respect of which tax has been paid any other local area under the said sub-Sections. (5) No benefit under sub-section (4) shall be given to a dealer unless he furnishes, to the satisfaction of the assessing authority, such declaration or certificate obtained from the selling dealer in such form and manner and within such period as may be prescribed. (6) Every notification made under this Section shall, as soon as may be after it is made, be laid before each house of the Stat Legislature/Assembly, while it is in session, for a total period of not less than fourteen days, extending in its one, session or more than one successive sessions a....
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....nd when the goods enter into the custom frontiers of India and are released for home consumption. (iv) After import of goods comes to an end the State legislature has full legislative competence to levy entry tax under Entry 52 List II. (v) The Original Package Theory as developed by the American Supreme Court in case of Brown vs. State of Maryland(supra) is not applicable in this country and the imported goods are not exempted from entry tax till it reaches to the factory premises/destination of its consumption, use or sale. (vi) Non inclusion of custom duty in the definition of purchase value in the statute of entry tax is not an indicator of the fact that legislature never intended to levy entry tax on imported goods. (vii) Entry tax legislation are fully covered by Entry 52 List II and the submission that essence of Entry 52 is octroi which can be levied only by local authorities and State has no legislative competence to impose entry tax under Entry 52 List II is fallacious. (viii) A plant imported in knocked out condition is fully covered with the definition of machinery and equipment under Part II of Schedule of the Orissa Act, 19....
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....rovided that where at the time of entry of goods into a local area, the quantity or value of goods to be sold within such local area for the purpose of being taken outside the State without consumption, use or sale in such local area, is not ascertainable, the dealer shall pay the amount of tax on the value of total quantity of goods and after the goods are consigned or sold outside or in the course of, export, the dealer may claim refund or adjustment of the amount so paid as tax in the month in which such goods are transferred outside the State or sold in the course of inter-State trade or commerce or the course of export, in respect of such goods, in the manner provided in Section 5 of this act." 13. In the context of the New Act, it is seen, each assessment year is a separate and independent unit of assessment of entry tax liability. As principle applicable to taxing statutes it was recognised in the context of the Income Tax Act in P.M. Mohd. Meerakhan v. CIT, (1969) 2 SCC 25, wherein it was held: "8 ... Under the Income Tax Act for the purpose of assessment each year is a self-contained unit and in the case of a trading adventure the 14. profits have to b....