NATIONAL ALUMINIUM COMPANY Vs. STATE OF ORISSA

JUDGEMENT

(1.) THIS is the second journey of the petitioners in these writ petitions to this Court occasioned due to the direction of the Hon'ble Supreme Court of India.

(2.) FOR the purpose of levy and collection of tax on the entry of goods into the local areas of the State of Orissa for consumption, use or sale therein and matters incidental thereto and connected therewith, Orissa State Legislature promulgated the Orissa Entry Tax Act, 1999 (Orissa Act 11 of 1999) on 20th of September, 1999. Validity of the said Act was challenged in the aforesaid writ petitions, inter alia, on the following grounds:

(3.) THEREAFTER , the two Judge Bench of the Hon'ble apex Court comprising of Hon'ble Mr. Justice A. Pasayat and Hon'ble Mr. Justice S.H. Kapadia observed that the basic issue in all the appeals revolved round the concept of 'Compensatory Tax' and the High Courts do not appear to have examined the issue in the proper perspective as they were bound by the judgments in Bhagatram's case (supra) and Bihar Chambers of Commerce's case (supra). It was further observed that since relevant data did not appear to have been placed before the High Courts, the apex Court permitted the parties to place them in the concerned writ petitions within two months and desired the concerned High Courts to deal with the basic issue as to whether the impugned levy was compensatory in nature. That is how the seven writ petitions have again come before this Court to decide the basic issue, referred to above.