The Hindu : New Delhi News : Court notices to BPL Mobile, Reliance Energy

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Wednesday, Aug 15, 2007
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Court notices to BPL Mobile, Reliance Energy

New Delhi: The Supreme Court has sought response from various companies, including BPL Mobile Cellular, Reliance Energy and Otis Elevator, on a petition challenging the Kerala High Court order holding the levy of entry tax on goods imported in Kerala as illegal and unauthorised.

A bench headed by Justice Arijit Pasayat, while issuing the notices, tagged the matter with similar appeals pending before it.

The High Court had observed that the State Government, which enacted the Kerala Tax on Entry of Goods into Local

Areas Act, 1994, had failed to establish that the entry tax was being utilised for the benefit of those from whom it was being collected.

While justifying the levy of tax, Kerala Government counsels T.L. Vishwanathan and P.V. Dinesh contended that the tax so collected was being utilised for service and expenditure on convenient roads, bridges and water transport. Giving details, the State said its entry tax collections had crossed Rs.186.79 crore in 2005-06.

The effect of the High Court judgement was that the State would have to refund over Rs.400 crore it had collected as entry tax over a period of time, a move that would affect the State’s economy, the petition said.

The High Court had passed the order on a batch of petitions raising a question as to whether vehicles imported from abroad were liable to pay entry tax. The court had held that entry tax could be collected on vehicles brought for sale in the State but could not be charged on vehicles brought from abroad as it was outside the scope of the Act. – PTI

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