Legal principle

In a taxing statute there is no equity about a tax and no presumption as to tax — nothing is to be read in, nothing implied; one can only look fairly at the language used, so where the entry tax definition covers goods entering from 'any place outside the State', imported goods and knock-down plant-machinery are taxable, while items not included in the Schedule are not.

Court decision

The Court held that entry tax under the Orissa Entry Tax Act, 1999 is leviable on goods imported from outside the country (the petitioners' contrary argument being 'attractive but without substance'), and that such imposition does not violate the constitutional restrictions under Article 246 read with Entry 52 of List II of the Seventh Schedule. Emami's paper plant brought in knock-down condition falls within 'machinery and equipments' under Part-II of Schedule-I, Entry 9, and is liable to entry tax. However, the raw materials and spares of IFGL Refractories listed by the Court are not included in the Schedule and are not liable to entry tax. Accordingly, all the writ petitions were dismissed except W.P.(C) No. 7 of 2008 (IFGL Refractories), which was allowed to the extent indicated, with W.P.(C) No. 12622 of 2006 (Emami's separate petition) noted as pending separately.

Facts

Around twenty industrial petitioners (including Tata Steel, Essar Steel, ACC, Hindalco, Emami Paper Mills and IFGL Refractories) imported coal, raw materials and machinery from outside India, and bought other goods from outside the State, for use in their Odisha plants, clearing the imports on payment of import duty under the Customs Act. The authorities under the Orissa Entry Tax Act, 1999 called upon Emami Paper Mills to furnish statements of goods imported from the USA, demanded entry tax on the value of such imports (including on a paper plant imported in knock-down condition), withheld way bills and 'C' forms, and collected entry tax, which Emami paid ad hoc through challans under protest. The petitioners approached the High Court under Articles 226/227 seeking exemption of imports from entry tax and refund of tax collected.

Key provisions

• Section 3, Customs Act, 1962 — Classes of officers of customs
• Section 23, Customs Act, 1962 — Remission of duty on lost, destroyed or abandoned goods
• Section 15, Customs Act, 1962 — Date for determination of rate of duty and tariff valuation of imported goods
• Section 12, Customs Act, 1962 — Dutiable goods
• Section 28C, Customs Act, 1962 — Price of goods to indicate the amount of duty paid thereon
• Section 3, Customs Tariff Act, 1975 — Levy of additional duty equal to excise duty, sales tax, local taxes and other charges