United Spirits Ltd. Vs State of Madhya Pradesh & Ors. (Supreme Court of India)
Supreme Court held that entry tax u/s. 3 of the Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976 [Madhya Pradesh Entry Tax Act] is leviable on sale of goods to State Warehouse. Accordingly, civil appeals are dismissed.
Facts- The appellant are involved in bottling and supplying of Beer and Indian Made Foreign Liquor. The issue is whether the appellants are liable for the payment of entry tax under Section 3 of the Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976. The High Court has repelled the challenge of the appellants. Being aggrieved, the present appeal is filed.
Conclusion- Reverting back to Sections 3(1) read with 2(1)(aa) and 2(1)(b) and 2(3), it is clear that the appellants by the sale to the warehouse caused to be effected the entry of goods and the entry was occasioned on the account of the sale into the local area for consumption, use or sale therein. It is also not disputed that the appellant is a dealer as defined under the Madhya Pradesh VAT Act 2002, as it stood then. The only contention of the appellants is this that the State warehouse is also a dealer. That makes no difference since it cannot be disputed that the appellants certainly occasioned the entry of goods and the levy of entry tax on them, which could always be passed on, is perfectly justifiable in law.
