SANJAY TRADING CO Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) THESE writ petitions which have been heard together and are being disposed of by a common order since common questions of law arise therein, have been filed by dealers in sugar, tobacco or iron and steel.

(2.) THE Sales Tax Officers concerned have been levying entry tax under provisions of the Entry Tax Act, 1976, on the turnover of the petitioners in regard to the above goods. According to the petitioners, this is illegal and, therefore, they seek the following reliefs : (a) Declaration that levy of entry tax is violative of the provisions of the Constitution and beyond the legislative competence of the State; (b) declaration that the provisions of the Entry Tax Act, 1976, are ultra vires the provisions of article 286 (3) and entries 92-A and 92-B of List I of the Seventh Schedule to the Constitution as also articles 301 and 304 of the Constitution; (c) declaration that levy of entry tax on the above goods is ultra vires the charging section; and (d) consequential reliefs such as quashing notices requiring them to deposit tax, prohibiting the Sales Tax Officers from proceeding with the pending assessment; restraining them from levying tax on the petitioners and directing them to refund tax illegally collected.

(3.) THE first submission made on behalf of the petitioners is that liability under the Entry Tax Act arises only in the case of a dealer liable to pay tax under the Sales Tax Act; that in regard to goods covered by these cases, no dealer is liable to pay tax under the Sales Tax Act and hence no dealer is liable to pay entry tax in relation to such goods.