sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
News Headlines »
 How to use your Form 16
 Which ITR form applies to you for financial year 2017-18?
 Income tax returns filing form-2 released; should you use it? Find out
  Are you planning to file ITR 1 form? here's how to do it Income Tax Return (ITR) filing
 30 LPA-Opening Financial Controller
 ITR form 2 in java release by CBDT for return filing by individuals
 How to file your income tax return using ITR Form-1 Income Tax efiling for AY 2018-19
 Income tax returns (ITR) filing: Have you received I-T dept notice? Safeguard yourself; here is how
 Delayed release of electronic ITR forms may compel CBDT to extend the filing deadline
 Trading volume linked to tax return?
 How to e-verify your income tax return? Here are five ways to do it

Order on entry tax has only prospective application: HC
October, 28th 2006

A clarification dated August 23, 2005 by the Special Commissioner & Commissioner of Commercial Taxes, Tamil Nadu, that entry tax was leviable on imported lay flat tubing and PP bags would have only prospective application, the Madras High Court has ruled.

Responding to a writ appeal by a Tirupur plastic unit challenging the order dated April 25, 2003 of the Special Commissioner, the First Bench, comprising Chief Justice Mr A.P. Shah and Mr Justice K. Chandru, held that the appeal partly succeeded. The said clarification would have only prospective application and consequently impugned order was quashed and set aside, the Bench ruled.

According to the appellant, the first respondent (Deputy Commercial Tax Officer, Tirupur) issued a notice proposing to levy entry tax on the two products imported by appellant, Om Plastics, Tirupur. The appellant countered saying that there could be no levy of the tax as the products were essentially from polypropylene.

The first respondent, however, confirmed tax and demanded payment holding that products fell under Entry 24 of schedule to the TN Tax on Entry of Goods into Local Areas Act, 2001. The first respondent relied on clarification dated August 19, 2005 of the Principal Commissioner.

The appellant contended that it was well settled by judgments of the apex court that revenue could withdraw earlier clarification issued with prospective effect and not retrospective effect.

On a query by appellant (petitioner), Special Commissioner clarified that words `in all forms' contained in Entry 24 denoted raw material only and did not include finished products. Special Government Pleader said that the two products would fall under the entry. The Bench pointed out that in view of an order in Mohan Breweries case (237 ITR 889) it was clear that clarification dated August 23, 2005 of Special Commissioner could not affect prejudicially assessee.

The Bench referred to another order of the Division Bench in Mohan Breweries case (139 STC 477), and said that even though clarification was executive in nature, it was binding on authorities till concessions given to petitioner under clarification were withdrawn, which could be done only prospectively.

The First Bench said in the result, the writ petition partly succeeded. The clarification dated August 23, 2005 would have only prospective application, and hence, impugned order dated April 28, 2006 was quashed and set aside. The writ appeal did not survive, and it was dismissed.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Enterprise Resource Planning Solutions ERP Solutions Enterprise Resource Planning Software Solutions ERP Software Solutions Supply Chain Management Solutions SCM Solutions Supply Chain Management Software Solutions SCM Software Solutions Enterprise Resource Planning Solutions India ERP Solutions India Enterprise Resource Planning Software Solutions India ERP Software Solutions India Supply Chain Management Solutions India SCM Solutions India Supply Chain Management Software Solutions India SCM Software Solutions India

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions