LG Electronics India Private Limited Vs Assistant Commissioner (Rajasthan High Court)
The Rajasthan High Court heard a series of S.B. Sales Tax Revision Petitions filed by LG Electronics India Private Limited, challenging orders dated 5 July 2024 in four appeals under Section 83 of the Rajasthan Value Added Tax Act, 2003 (RVAT Act, 2003). The appeals arose from an order passed by the Assistant Commissioner, Anti-Evasion, Zone-I, Jaipur, which had imposed entry tax with interest and penalty for goods brought into Rajasthan and subsequently transferred outside the State. The Appellate Authority had allowed the appeals partially but rejected them in part, and the petitioner sought revision.
The core issue revolved around the interpretation of Section 3 of the Rajasthan Tax on Entry of Goods into Local Areas Act, 1999 (RET Act, 1999) and Rule 12(3) of the Rajasthan Tax on Entry of Goods into Local Areas Rules, 1999 (RET Rules, 1999). The petitioner contended that goods imported into Rajasthan, which were subsequently transferred to another state without being consumed, used, or sold in Rajasthan—even after six months—should not attract entry tax. The petitioner argued that Section 3 of the RET Act imposes tax only when goods are brought into a local area for consumption, use, or sale, and that Rule 12(3) of the RET Rules, which imposed a six-month limit for deducting exported goods from taxable value, was contrary to the Act. The petitioner relied on prior judgments, including Gypsy Pegasus v. State of Gujarat (2018), Peekay Re-Rolling Mills (P) Ltd v. Assistant Commissioner (2007), and Balaji Steel Re-Rolling Mills v. Commissioner of Central Excise & Customs (2014), to argue that statutory provisions take precedence over rules and that exemptions or deductions are irrelevant when there is no levy.
