LexM/S. BIRLA CORPORATION LTD. versus STATE OF RAJASTHAN AND ORS.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
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M/S. BIRLA CORPORATION LTD.
v.
STATE OF RAJASTHAN AND ORS.
MARCH 11, 1999
(S.P. BHARUCHA, S.S. MOHAMMED QUADRI
AND R.C. LAHOTI, JJ.]
Rajasthan Tax on Entry of Motor Vehicles into Local Areas Act,
1988:
S. 4(2 )-Entry tax-Reduction to the extent of amount of tax paid under
law relating to general sales tax-Held, not applicable to the tax paid on sale
or purchase of specified goods or in specified circumstances under the Central
Sales Tax Act-Central Sales Tax Act, 1956 s. 2(i)-constitution of
India-Seventh Schedule-List I, Entry 92A and List II, Entry 54.
The appellant assessee, manllfacturer of cement, purchased in the
State of Tamil Nadu dumpers for its use in the State of Rajasthan and
paid tax under the Central Sales Tax Act. On entry of the dumpers into
the State of Rajasthan entry tax was demanded under the Rajasthan Tax
E on Entry of Motor Vehicles Into Local Areas Act, 1988. The assessee
claimed rebate under s. 4(2) of the Act, but the assessing authority raised
a demand without giving the assessee the benefit of rebate. The assessee
filed a writ petition before the High Court. The writ petition was trans-
ferred to the Rajasthan Taxation Tribunal where it was dismissed. Ag-
grieved, the assessee filed the present appeal.
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Dismissing the appeal, this Court
HELD : Section 4(2) of the Rajasthan Tax on Entry of Motor
Vehicles Into Local Areas Act, 1988 provides for a reduction to the extent
of the amount of tax paid under the law relating to general sales tax.
G Section 2(i) of the Central Sales Tax Act while defining 'sales tax law'
makes a clear distinction between a general sales tax law that provides for
the Levy of tax on the sale or purchase of goods generally and a special
sales tax law that provides for the levy of tax on the sale or purchase of
specified goods or in specified circumstances .. Tax under the Central Sales
H Tax Act would clearly fall within the second category. That this is so would
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BIRLA CORPN. LTD. v. STATE [BHARUCHA, J.]
997
also be borne out by reference to Entry 54 of List II of the Seventh Schedule A
to the Constitution which empowers the State to levy taxes on the sale or
purchase of goods and Entry 92A of List I which empowers the Centre fo
levy taxes on the sale or purchase of goods when the same takes place· in
the course of inter-State trade or commerce. [998-G-H]
Orissa Cement Ltd. v. State of 01issa a11dA11r., [1970] 3 SCC 869, held B
inapplicable.
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 760 of
1997.
From the Judgment and Order dated 27.9.96 of the Rajasthan Taxa-
C
tion Tribunal, Jodhpur in D.B.C.W.P. No. 2275 of 1994.
B. Sen and Praveen Kumar for the Appellant.
S.K. Jain and A.P. Dhamija for the Respondents.
The Judgment of the Court was delivered by
BHARUCHA, J. The assessee manufactures cement at Chittorgarh
in the State of Rajasthan. It purchased dumpers for the purpose of its
operations in the State of Rajasthan. The purchase was made in the State
of Tamil Nadu. Tax was paid thereon under the provisions of the Central
Sales Tax Act. When.the dumpers were transported into Rajasthan, entry
tax was demanded thereon under the provisions of the Rajasthan Tax on
Entry of Motor Vehicles Into Local Areas Act, 1988 ('the said Act'). The
assessee claimed rebate of the tax under the Central Sales Tax Act that it
had paid on the dumpers, invoking the provisions of Section 4(2) of the
said Act. Upon a demand being raised by the assessing authority, without
giving to the assessee the benefit of such rebate, the appellant filed a writ
petition in the High Court of Rajasthan for a direction to the taxing
authorities to give the same. The writ petition having been transferred to
the Rajasthan Taxation Tribunal, it was dismissed by the judgment and
order which is under challenge.
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The said Act provides for the levy of tax on the entry of motor vehicle
into local areas of the State of Rajasthan for use and sale therein. The
incidence of tax is provided for under Section 3 which states that a tax on
the purchase value of motor vehicles shall be levied and collected if entry
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of the motor vehicles is effected into the local areas of the State for use or H
998
SUPREME COURT REPORTS
[1999] 1 S.C.R.
A sale therein at such rate or rates as had been notified for motor vehicles
under the Rajasthan Sales Tax Act, 1954. For our purposes, the relevant
provision is Section 4(2). SectExcerpt shown. Read the full judgment & AI analysis in Lexace.