NTPC LTD Vs. STATE OF M P

JUDGEMENT

(1.) Challenging the order Annexure P-8 dated 28.11.2007 passed by the Assistant Commissioner, Commercial Tax, Satna imposing liability of Rs.4,67,03,347/- by way entry tax, this writ petition has been filed by the petitioner.

(2.) Petitioner company has established a Thermal Power Project at Vindhya Nagar, Sidhi. The project has been established after due approval from the Government of India for the assessment year 01.04.1997 to 31.03.1998 and the entry tax in question has been imposed. It is the case of petitioner that during this period for the purpose of establishment of their second phase certain construction activities were going on and for the purpose of this construction plant and machineries for setting up of the power house were purchased and were brought into area in question for which entry tax has been imposed.

(3.) Placing reliance on a judgment already rendered in the case of present petitioner National Thermal Power Corporation Ltd., Sidhi v. Additional Commissioner, Commercial Tax, Madhya Pradesh and Others,2001 34 VKN 90, Shri H.S. Shrivastava, learned senior counsel points out that for the purpose of erection of second phase of industry if building material or other material are brought into the local area and the material is used for the purpose of erection and production of industry, then entry tax on the product cannot be imposed.