Case Law Details
Assistant Commissioner (CT) Vs Tvl. Rason Earth Movers (Madras High Court)
In a significant legal precedent, the Madras High Court recently upheld a decision that quashed an assessment order issued beyond the statutory three-year deadline under the Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990 (commonly known as the Entry Tax Act).
Background of the Case
The dispute arose when the respondent, Tvl. Rason Earth Movers, imported a JCB vehicle from Pune to Tamil Nadu without filing returns or paying taxes under the Entry Tax Act. The Revenue issued a notice on January 8, 2016, asserting that the vehicle’s entry attracted entry tax. Despite the respondent’s objections, the assessing authority passed an assessment order on July 7, 2016, imposing tax and penalties.
Aggrieved by this decision, Tvl. Rason Earth Movers filed a writ petition challenging the assessment order on the grounds of jurisdiction and procedural lapses. The Single Bench of the Madras High Court ruled in favor of the respondent, quashing the assessment order. The Revenue then appealed this decision.
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