STATE OF KERALA AND OTHERS versus FR. WILLIAM FERNANDEZ ETC. ETC.

Citation: [2017] 13 S.C.R. 663 · Decided: 09-10-2017 · Supreme Court of India · Bench: A.K. SIKRI · Disposal: Disposed off

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Judgment (excerpt)

[2017] 13 S.C.R. 663 
STATE OF KERALA AND OTHERS 
v. 
FR. WILLIAM FERNANDEZ ETC. ETC. 
{Civil Appeal Nos. 3381-3400of1998) 
OCTOBER 09, 2017 
[A. K. SIKRI AND ASHOK BHUSHAN, JJ.] 
A 
B 
Entry Tax - Legislative competence of the State Legislature to 
impose Entry Tax on goods imported from outside the country 
entering into local area of the State - Held: The import of goods 
C 
from any territory outside India comes to an end when the goods 
enter into the custom frontiers of India and are released for home 
consumption -After import of goods is complete, the State legislature 
has fall legislative competence to levy entry tax under Entry 52 List 
11 - The submission that essence of Entry 52 is octroi which can be 
levied only by local authorities and State has no legislative D 
competence to impose entry tax under Entry 52 List 11 is fallacious 
- Constitution of India - Seventh schedule, List II, Entry 52 - Orissa 
Entry Tax Act, 1999 - Kera/a Tax Act, 1994 - Bihar Tax on Entry of 
Goods in Local Area for Consumption, Use or Sale, 199 3 - Uttar 
Pradesh Tax on Entry of Goods into Local Area Act, 2007 -
E 
Uttarakhand Tax on Entry of Goods into Local Areas Act, 2009 -
s.2(1)(c) - West Bengal Tax on Entry of Goods into Local Areas 
Act, 2012 - s.2(1)(c). 
Entry Tax - State Legislations on levy of Entry Tax on goods 
imported from outside the country entering into local area of the 
F 
State - Held: Orissa Entry Tax Act, 1999, Kera/a Tax Act, 1994 and 
Bihar Tax on Entry of Goods in Local Area for Consumption, Use 
or Sale, 1993 (before its amendment by Bihar Act, 2003 and 2006) 
do not exclude levy of entry tax on the goods imported from any 
place outside territories of India into a local area for consumption, 
-w~ 
G 
Entry Tax - Taxable event - Entry 52 provides a legislative 
field, namely, 'taxes on the entries of goods into a local area for 
consumption, use or sale therein' - The charging event arises on 
entry of scheduled goods into a local area - The origin of goods 
663 
H 
664 
SUPREME COURT REPORTS 
(2017] 13 S.C.R. 
A 
has no relevance with regard to chargeability of entry tax - Any 
goods which are entering into a local area of a State whether coming 
from another local area of State, any other State or outside the 
country, the charging event is same for all goods entering into local 
area -
Constillltion of India - Seventh Schedule, List II, Entry 52. 
B 
c 
D 
E 
F 
Entry Tax -
Taxable event - Custom duty vis-a-vis entry tax 
on imported goods - Held: The event for levy of customs d11ty, which 
is in the domain of the Parliament, is entirely different from that of 
event of entry tax - The liability to pay Stale entry tax arises only 
when goods enter into a local area for cons11mption, use and sale, 
which event is entirely different and separate from the levy of a 
customs duty, which is on import - The taxing event pertaining to 
levy of entry tax occurs only qfter the taxing event of levy of customs 
duty is over. 
Entry Tax -
Whether doctrine of original/unbroken package 
as evolved by the American Court are to apply with ·regard to 
imported goods and thereby prohibiting the State from levying any 
tax till the goods are first sold/dealt by the importer - Held: The 
Original Package Theory as developed by the American Supreme 
Court in case of Brown v. State of Maryland is not applicable in 
India and the imported goods are not exempted from entry tax till it 
reaches to the factory premises/destination of its cons11mption, use 
or sale. 
Entry Tax -
Non-inc/usicn of custom duty in the definition 
of purchase value in the statute of entry tax - Held: Such non-
inclusion is not an indicator of the fact that legislature never 
intended to levy entry tax on imported goods. 
Constitution of India - Seventh Schedule, List I, Entry 41 
and 83 - Entry Tax Legislations - Whether intr11de into exclusive 
legislative Joma.in of Parliament as reserved imder Entry 41 and 
Entry 83 List I -'1fe/d: Entry tax legislations do not intrude in the 
G legislative field reserved for Parliament under Entry 41 and under 
Entry 83 of Lisi I - The State Legislature is fully competent to impose 
tax on the entry of goods into a local area for consumption, sale 
and use - Orissa Entry Tax Act, 1999 - Kera/a Tax Act, 1994 -
Bihar Tax on Entry of Goods in Local Area for Consumption, Use 
or Sale, 1993. 
H 
STATE OF KERALA v. FR. WILLIAM FERNANDEZ 
665 
Constitution of India - Art.286 - Restriction on imposition 
A 
under 

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