TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 120
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....he Tribunal is justified to rely upon the decision of the High Court in the case of Rewa Coal Fields Ltd. Shahdol Vs. Sales Tax Commissioner, M.P. & Others (1994) 18 CTJ, page-71 which is under the MP General Sales Tax Act when the definition of manufacture u/s-2(j) was wide enough even to include collection of sand from river bed. 3. Whether under the facts and circumstances of the case the Tribunal is justified to apply the definition of raw material in this case whereas the issue is on manufacture. The CG Vat Act do not define raw material. Questions of law in Tax Case No. 27/2024 1. Whether under the facts and the circumstances of the case inspite of accepting that the appellant do not hold explosive license the amount of Rs. 13,10,772/- in the balance sheet as blasting expenses, the Tribunal is justified to hold that this is purchase of explosive. 2. Whether under the facts and circumstances of the case the Tribunal is justified to rely upon the decision of the High Court in the case of Rewa Coal Fields Ltd. Shahdol Vs. Sales Tax Commissioner, M.P. & Others (1994) 18 CTJ, page-71 which is under the MP General Sales Tax Act when the definition of manufacture u/s-2(j) wa....
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....t the applicant had never purchased explosives and had paid the amount to M/s. Starex Minerals. It was found that the applicant itself had shown Rs. 13,10,772/- for purchase of explosives and had paid entry tax @ 1%. The Chhattisgarh Commercial Tax Tribunal relying upon the judgment of the Supreme Court in the matter of Rewa Coal Fields Ltd. Shahdol v. Sales Tax Commissioner, M.P. and others (1994) 18 CTJ, page-71held that mining was a manufacturing activity and proceeded to dismiss the appeal and rectification application was also dismissed whereupon reference application was filed under Section 55(1) of the VAT Act which was also dismissed. However, ultimately, application was filed before this Court for calling upon the Tribunal to make a reference and the Tribunal was directed to make reference upon which this reference has been made and above stated questions of law have been sent by the Tribunal seeking answer by this Court. 5. Mr. Neelabh Dubey, learned counsel appearing for the applicants herein/assessee, would submit that the Assessing Officer solely relying upon the circular dated 30-12-2016 invoked Section 4A of the Entry Tax Act and levied 6% and 10% entry tax wrongly ....
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..... High Court in the matter of Associated Cement Companies Ltd. v. State of M.P. and others 1995 SCC OnLine MP 87. He would also submit that the applicants had purchased 'explosives' from outside the local area for use in 'mining' making them liable for entry tax under the Entry Tax Act. He would contend that amending the notification dated 29-9-1997, notification dated 27-7-2006 was published making substitution in entry No. 3 of Serial No. 1 and by the said amendment, enhanced rate of entry tax @ 6% was chargeable on purchase of 'explosives' from dealer registered within the State of Chhattisgarh and entry tax @ 10% was chargeable on purchase of 'explosives' from other dealer. He would further contend that once goods have been identified as being used mainly for manufacturing, in a particular local area/areas and notification under Section 4A is issued with respect to entry of such goods in the notified local areas, then tax cannot be charged at any other rate specified under Section 4. Since by notification dated 27-7-2006, the rate notified on entry of 'explosives' in local areas of Chhattisgarh is 6% and 10%, in absence of challenge to the said notification, the authorities are....
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....rea for use, sale or consumption irrespective of its origin, and observed as under: - "63. There cannot be any dispute to the proposition as laid down by this Court in the abovenoted cases. Statutes which are in consideration are the statutes where clear charging provision has been enacted and charging of entry tax is on entry of the scheduled goods into a local area for consumption, use or sale. Thus, the charging event arises on entry of scheduled goods into a local area. Any goods which are entering into a local area of a State whether coming from another local area of State, any other State or outside the country, the charging event is same for all goods entering into local area. We, thus, are of the clear view that charging section is clear, unambiguous and the provisions cannot be read to mean that the imported goods coming from outside the country are excluded from charge of entry tax. No such indication is discernible from any provision of the Act. Charging event is complete as and when goods enter into local area for use, sale or consumption irrespective of its origin. We, thus, are of the view that definition clause, Section 2(d) read with Section 3 does not exclude the....
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.... specified in the notification and in such manner as may be prescribed, the entry tax payable by a dealer under this Act shall be charged on his taxable quantum relating to such goods at a rate not exceeding fifty per centum as may be specified in such notification notwithstanding anything to the contrary contained in Section 4. (2) On the issue of the notification under sub-section (1), entry tax shall not be chargeable and payable on such goods at any other rate mentioned in any other provisions of this Act." 15. Section 4A of the Entry Tax Act empowers the State Government to specify the local area or areas and the goods which are used or consumed in such local area or areas mainly for manufacture of other goods. The State Government may direct that from the date specified in the notification and in the prescribed manner, entry tax payable by a dealer shall be charged on his taxable quantum relating to such goods at a rate not exceeding 10%. There is non obstante clause in relation to Section 4. On the issue of the notification, entry tax shall be chargeable and payable on the entry of the goods specified at the rate to be prescribed in the notification subject to a ceiling o....
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....he entry of the goods specified at the rate to be prescribed in the notification subject to a ceiling of 10% per annum and not at the rate prescribed in Section 4 of the Schedules to the Act, and observed as under: - "11. xxx xxx xxx The intention underlying proviso I is to offer concessional rate of goods specified in Schedule II and all the goods specified in Schedule III other than limestone. Items 3, 13 and 14 of Schedule II which are excluded for the purpose of the proviso are iron and steel, paddy and pulses. Schedule III is in three parts. Part I prescribes 1.5% as the tax for goods specified in Entries 1 to 32, 32-A and 32-B of Part II of Schedule II and 7.75% for foreign and Indian Made foreign liquor. Part II specifies 0.5% as tax in respect of silver and gold ornaments of personal wear and 0.25% in respect of bullion and specie. All goods other than those included in Schedules I and II and parts' and II of Schedule III carry 1% tax under part III. Many other goods specified in Schedules II and III may be consumed or used as raw materials for manufacture of other goods. The intention of the proviso (i) to Sec. 4(1) of the Act is to offer concessional entry tax in resp....
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....e concession offends the equality clause of the Constitution. Point answered accordingly." 19. Furthermore, in Associated Cement Companies Ltd. (supra), their Lordships of the M.P. High Court considering the provisions of the Entry Tax Act held that the Entry Tax Act provides two legislative schemes in the matter of imposition of entry tax, one scheme which may be regarded as the normal scheme is comprised in Section 3, 4, 9 and related Sections and the second scheme is the one comprised in Sections 3, 4A and 12, and observed as under: - "26. The provisions of the Act clearly reveal two legislative schemes in the matter of imposition of entry tax. One Scheme which may be regarded as the normal scheme is comprised in Sections 3, 4, 9 and related sections. The second scheme is the one comprised in Sections 3, 4-A and 12. The normal scheme deals with goods specified in Schedule II and III subject to the exactions and concessions provided under the statutory provisions for which rates of tax are prescribed in Schedules II and III subject to power of the State Government under Section 9 to modify the rates which is subject to the limitation contained in the proviso. Section 4-A takes....
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....f Godfrey Philips India Ltd. v. State of M.P. and others 2008 SCC OnLine MP 660, the M.P. High Court, discussing the complete scheme of the Entry Tax Act, affirmed the principle of law laid down in Associated Cement Companies Ltd. (supra) and Mysore Cement Ltd. (supra), and observed as under: - "200. As far as the challenge to the constitutional validity of the several notifications issued by the State, mostly under section 4A of the Act, on the ground that few persons and goods have been selected for the purposes of imposing higher rate of tax, is concerned, the issues stand concluded by the judgments of this court in the cases of Associated Cement Companies Ltd. v. State of M. P. AIR 1996 MP 116 and Mysore Cement v. State of Madhya Pradesh 143 STC 432 (MP) ; (2003) 2 STJ 615 wherein prescriptions of such higher rates under section 4A were held to be valid." 21. As such, from the perusal of the provisions contained in Sections 3, 4 and 4A of the Entry Tax Act and in light of the principles of law laid down in Fr. William Fernandez's case (supra) and Associated Cement Companies Ltd. (supra), it is quite vivid that once goods have been identified as being used mainly for manufact....