ITC LIMITED Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) CONSTITUTIONAL validity of the Tamil Nadu Tax on Entry of Goods into Local Areas Act, 2001("Act" for short), and various notifications issued by the State Government in exercise of the powers conferred by Section 15 of the Act is questioned in these writ petitions and connected writ appeals.

(2.) TAMIL Nadu State enacted the Act to provide for the levy of tax on entry of goods into local areas for consumption, use or sale therein, being TAMIL Nadu Act 20 of 2001. Section " 3 empowers the State Government to levy and collect tax on entry of scheduled goods into any local area for consumption, use or sale therein at such rate not exceeding 30% ad valerom, as may be specified by the State Government. Goods liable for levy of tax under the Act on entry in the specified local areas at the specified rates are those set out in the schedule annexed to the Act. Section 15 of the Act contains power of the State Government to amend the schedule and armed with that power the State Government issued various notifications inserting several goods/classes of goods into the schedule annexed to the Act. The Act was brought into force on 01. 12. 2001.

(3.) THE expression "entry of goods into local area" has been defined under the Act vide Section 2(c) and it reads as follows: 'section - 2(c): Entry of goods into a local area - with all its grammatical variations and cognate expressions, means entry of scheduled goods into a local area from any place outside the State for consumption, use or sale therein;"