JEYAM POLY SACKS Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THE learned counsel appearing on behalf of the petitioner has submitted that the issue involved in the present writ petition is covered by an order of a Division Bench of this Court, dated 22. 3. 2007, made in ITC limited Vs. STATE OF TAMIL NADU AND ANOTHER ( (2007)7 VST 367 (Mad)) wherein the constitutional validity of the tamil Nadu Tax on Entry of Goods into Local Areas act, 2001, and the various notifications issued by the State Government in exercise of the powers conferred by Section 15 of the Act was questioned.

(2.) THE Division Bench, by its order, dated 22. 3. 2007, had held, in paragraph 48 of the said order, that "the levy of entry tax on goods imported from other states to the State of Tamil Nadu and from abroad is not compensatory in nature, since the State Government could not discharge its burden by placing materials before the Court that payment of levy of entry tax is reimbursement/recompense for the quantifiable/measurable benefit provided or to be provided to the tax payers. THE impugned levy imposing entry tax being discriminatory is also violative of article 304 (a) of the Constitution. We, therefore, hold that the demand and collection of entry tax under the Tamil Nadu Tax on Entry of goods into Local Areas Act, 2001, is illegal, unauthorised and violative of article 301 of the Constitution. THE writ petitions are allowed as above and the levy and demand notices issued would stand quashed. "