Judgment:
1....W.P.No.16148 of 2007 Sagar Mines PVT.LTD.State of M.P.& otheRs.4.7.2012 Shri Mukesh Agrawal, Counsel for the petitioner.
Shri Jaideep Singh, Counsel for the respondents.
A short controveRs.involved in this case is whether the petitioner was liable for payment of entry tax who purchased plant, machinery and tools before commencement of the mining business, which were brought by the petitioner within the local limits of Katni.
Learned counsel appearing for the petitioner submits that the controveRs.involved in this case is squarely covered by a recent Division Bench judgment of this Court in Commissioner of Sales Tax, M.P.versus Universal Cables LTD.Satna (2007)11 STJ 307.
It was further submitted by Shri Agrawal that earlier also in Maihar Cement versus Assistant Commissioner of Sales Tax (1986) 19 VKN 3.(MP) a similar view was taken by another Division Bench in the matter.
The aforesaid position is factually not disputed by Shri Jaideep Singh, learned counsel appearing for the State.
It is not well established that plant, machinery and tools which were brought into the local area for setting up of industry and before commencement of the business are exempted from payment of entry tax as has been held in Universal Cables LTD.and Maihar Cement (supra) and also by a Single Bench in National Thermal Power Corporation LTD.Sidhi versus Addl.
Commissioner, Commercial Tax, Jabalpur & ORS.(2004) 3 STJ 670.
We find that the orders passed by the authorities directing imposition of the entry tax on such plant, machinery and tools are liable to be quashed.
According this petition is 2....W.P.No.16148 of 2007 Sagar Mines PVT.LTD.State of M.P.& otheRs.4.7.2012 allowed.
Orders Annexure P-3 and P-5 imposing entry tax on such plant, machinery and tolls which were brought within the local area, before commencement of the business are hereby quashed.
If any amount has been deposited by the petitioner towards the entry tax, on these iteMs.petitioner shall be entitled to get refund of the aforesaid amount within a period of 60 days from the date of production of certified copy of the order.
No order as to costs.
C.C.As per rules.
(Krishn Kumar Lahoti) (Vimla Jain) Judge Judge vj