RANA PAPERS LIMITED Vs. STATE OF U.P.

JUDGEMENT

(1.) WE have heard Sri Bharat Ji Agrawal, senior advocate, assisted by Sri Piyush Agarwal for the petitioner. Sri S.P. Kesarwani, Additional Chief Standing Counsel appears for the Central Excise Department. The petitioners are manufacturers of paper, meant for packing purposes. By this writ petition, they have prayed for the following directions:

(2.) THE entry tax was levied in the relevant years, for which rebates in State development tax is claimed under the U.P. Tax on Entry of Goods Act, 2000. In Indian Oil Corporation Ltd. v. State of U.P. reported in : [2004] 137 STC 399 (All) : AIR 2004 All 277, this court declared the entry tax levied by the U.P. Tax on Entry of Goods Act, 2000 to be ultra vires, and violative of articles 301, 304(b) of the Constitution of India. In a special appeal filed against the judgment, an interim order was passed by the Supreme Court providing that 50 per cent of the due tax was to be paid, and for the balance 50 per cent, a bank guarantee was to be submitted. The entry tax was imposed again by the U.P. Tax on Entry of Goods Act 2007, the validity of which has been upheld by the court in ITC Limited v. State of U.P. reported in : [2012] 48 VST 281 (All) : [2012] 48 NTN 1.

(3.) A rebate on payment of tax, on certain purchases or sales may be provided by the State Government under section 5 of the U.P. Trade Tax Act, 1948.