The High Court disposed of a writ petition challenging the levy of Orissa Entry Tax on imported plant and machinery, relying on precedents that uphold the State Legislature's power to levy tax on goods after they enter India.
The writ petition stands disposed of in terms of the judgments and order as referred to by the Court.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF ORISSA AT CUTTACK W.P.(C) No.15698 of 2013
Bharath Coal Chemicals Ltd. ….. Petitioner (BCCL)
Mr. Sumit Lal, Advocate Vs. ….. State of Odisha & Others Opposite Parties
Mr. Diganta Dash, A.S.C. for the Revenue
CORAM:
DR. JUSTICE B.R. SARANGI MR. JUSTICE MURAHARI SRI RAMAN
ORDER
07.08.2023
Order No. 05.
This matter is taken up through hybrid mode.
“It is, therefore, prayed that this Hon’ble Court may be graciously pleased to issue Writ/ Directions/ Declaration/ Orders under Article 226 of the Constitution of India and more particularly to issue:
1. Rule nisi calling upon the Opposite Parties to show cause as to why the prayers made hereunder shall not be allowed;
2. Declaration declaring that the plant and machinery brought by the petitioner from outside the borders of Union of India and in the course of import entering into local area of Paradeep or reaching Paradeep after entering in the Port at Haldia in West Bengal
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shall not be subject to levy of Orissa Entry Tax and that the Opposite Parties shall not collect/realize Entry Tax thereon and the entry tax already realized from the Petitioner is contrary to law and the same is liable to refunded to the Petitioner with interests;
3. Declaration that the Opposite Parties do not have jurisdiction to levy and collect Orissa Entry Tax under the Orissa Entry Tax Act, 1999 for the tax period 12/2010 to 6/2011 in the Notice u/s 7(5) of the OET Act on the goods brought from outside the Union of India in the course of import through different ports i.e. Haldia and Paradeep.
4. Writ of certiorari quashing the Notice dated 22.06.2013 vide Annexure-2 of the Opposite Party No.3 issued u/s.7(5) for the tax period 12/2010 to 6/2011 demanding a sum of Rs.4,67,36,300.00 and writ of mandamus directing refund of the entry tax already deposited for the said assessment years to the tune of Rs.1,44,50,121 under threat and coercion with interest.
5. Interim order restraining the Opposite Parties from collecting Entry Tax from the Petitioner on the Plant and machineries already brought from outside the Country and in the course of being imported into the State of Orissa from Haldia in the course of import during pendency of the Writ Petition;”
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and Bihar Tax on Entry of goods in local area for consumption, Use or sale, 1993 (before its amendment by Bihar Act, 2003 and 2006) do not exclude levy of entry tax on the goods imported from any place outside territories of India into local area for consumption, use or sale.
(ii) All the Entry Tax Legislations questioned in these appeals are legislations which are within the legislative competence of the State legislatures and do not intrude the legislative domain of Parliament as reserved in Entry 41 and Entry 83 of List I.
(iii) The import of goods from any territory outside India comes to an end when the goods enter into the custom frontiers of India & 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 & 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 & the submission that essence of Entry 52 is octroi which can be levied only by local authorities & State has no legislative competence to impose entry tax under Entry 52 List II is fallacious.”
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William Fernandez Etc. Etc., 2017 SCC OnLine SC 1291= (2018) 57 GSTR 6 (SC); Jindal Stainless Ltd. Vrs. State of Haryana, (2016) 11 SCALE 1 and Order dated 28.03.2017 in State of Odisha vrs. Reliance Industries Ltd., CA Nos.6474-6798 of 2017, this matter may be disposed of accordingly.
(DR. B.R. SARANGI)
JUDGE
(M.S. RAMAN)
JUDGE
MRS
Signature Not Verified
Digitally Signed Signed by: MANORANJAN SAMAL Designation: PERSONAL ASSISTANT Reason: Authentication Location: Orissa High Court, Cuttack Date: 07-Aug-2023 17:34:19
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2 issues framed by the court
Whether entry tax can be levied on plant and machinery imported from outside India.
Whether the petitioner is liable to refund entry tax paid and interest.
Colour shows how this judgement treated each authority
State of Kerala & Others vs. FR. William Fernandez Etc. Etc.Explained¶31
State of Kerala & Others vs. FR. William Fernandez Etc. Etc., C.A. Nos.3381-3400 of 1998, order dt.09.10.17
Jindal Stainless Ltd. Vrs. State of HaryanaRelied on¶22
Jindal Stainless Ltd. Vrs. State of Haryana
State of Odisha vrs. Reliance Industries Ltd.Relied on¶31
State of Odisha vrs. Reliance Industries Ltd., CA Nos.6474-6798 of 2017, Order dated 28.03.2017
3 provisions across 2 enactments
Bharath Coal Chemicals Ltd.
State of Odisha
B.R. Sarangi
Murahari Sri Raman
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
