Case Law Details
United Spirits Limited Vs State of U.P. (Allahabad High Court)
The Allahabad High Court recently held a significant hearing between United Spirits Limited and the State of U.P., resulting in an important ruling. The court ruled that Indian Made Foreign Liquor (IMFL) does not fall under the scope of the Reversed Entry Act of 2007, thereby setting aside an entry tax demand on United Spirits Limited.
The case revolved around the jurisdiction of the Entry Tax Act, 2000, specifically regarding IMFL. The counsel for United Spirits Limited argued that while the Act initially included IMFL in its schedule, the reintroduction of the Act in 2007 under the Uttar Pradesh Tax on Entry of Goods into Local Areas Act left out IMFL from its schedule. Therefore, they contended that the proceedings initiated against the petitioner lacked jurisdiction. The High Court found merit in this argument, stating that the issue necessitates consideration.
This ruling could potentially have far-reaching effects, especially for companies dealing in IMFL. By excluding IMFL from the Reversed Entry Act of 2007, the Allahabad High Court has provided a clearer understanding of the legal intricacies surrounding the entry tax landscape.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
Heard Sri Bharat Raichandani along with Harshul Bhatnagar, learned counsel for the petitioner and Vineet Pandey, learned C.S.C along with Rishi Kumar, A.C.S.C. and perused the records.
Shri Vineet Pandey raised a preliminary objection about maintainability of the present writ petition and submits that against the order, there is an alternative remedy of second appeal before the Commercial Tax Tribunal, Bareilly, where the jurisdiction lies to the petitioner.
Reverting to the said submission, learned counsel for the petitioner submits that present petition has been filed raising the issue of jurisdiction as under Entry Tax Act, 2000 in the schedule Indian made foreign liquor, where it is mentioned. Thereafter, the act was reintroduced by Act No. 30 of 2007 Uttar Pradesh Tax on Entry of Goods into Local Areas Act, 2007. In the schedule of items, Indian made foreign liquor, was not mentioned. Therefore, proceedings initiated against petitioner is without jurisdiction.
In view of the above, on perusal of records, counsel for the petitioner have substance.
The matter requires consideration.
Respondents may file counter affidavit within four weeks. Two weeks thereafter for rejoinder affidavit.
List again on 20th of July, 2023.
Till the next date of listing, no coercive action shall be taken against the petitioner provided petitioner furnishes surety other than cash or bank guarantee to the satisfaction of Assessing Authority.
Order Date :- 22.5.2023
