HC rejects request of Actor Dhanush to withdraw Tax Exemption plea

Mr. K. Dhanush Vs State of Tamilnadu (Madras High Court)

The writ on hand is filed to issue a mandamus forbearing the respondents and their subordinates from demanding or collecting Entry Tax in respect of the petitioner’s Imported ROLLS ROYCE GHOST FK42 RHD, Diamond Colour vide bearing Chassis No.SCA664S0XFUH18471, Engine No.90311169 for the purpose of assignment of new registration mark by the 3^rd respondent.

Facts of the case:

2. The petitioner states that he has purchased one ROLLS ROYCE GHOST FK42 RHD, Diamond Colour car of United Kingdom origin and the port of loading was London. The vehicle has been manufactured by Rolls Royce Motor Cars Limited and the price of the vehicle is Rs.2,15,26,563/- and the petitioner has paid customs duty of Rs.2,69,79,860/-. The petitioner approached the 3^rd respondent for the purpose of new registration of the imported vehicle and the 3rd respondent insisted the petitioner to submit ‘Entry Tax Clearance Certificate’ to be obtained from the 2^nd respondent. When the petitioner approached the office of the 2^nd respondent, the 2^nd respondent insisted payment of Entry Tax in respect of the imported vehicle.

3. The petitioner states that he has paid the customs duty and therefore, no further tax is to be levied. Neither Sales Tax nor Entry Tax is levied for vehicles that are imported. The contention of the petitioner is that, the goods that are manufactured in India suffers payment of Excise Duty and the goods that are imported suffers Customs Duty. By questioning the levy of Entry Tax, the petitioner has prayed for an injunction restraining the respondents from collecting the Entry Tax in respect of the imported vehicle.

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