M/S. Suganya Constructions vs. The State Of Tamil Nadu
Original PDF →Facts
The petitioners, including M/s. Suganya Constructions, Tvl. Virumandi Construction, and S.K. Subba Reddiar, filed writ petitions challenging the constitutional validity of the Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990. They sought a declaration that the Act was unconstitutional, ultra vires various articles of the Constitution, and unenforceable. The petitions were filed against the State of Tamil Nadu, Commercial Tax Officers, and Regional Transport Officers. The core of the challenge was that the entry tax levied under the Act was not compensatory in nature, citing previous High Court and Supreme Court judgments.
Held
The Court dismissed the writ petitions. The decision was based on a previous judgment of the same High Court in V. Krishnamurthy v. State of Tamil Nadu and others (Order dated 29.1.2019 passed in W.P.No.32710 of 2005 etc.). In that prior judgment, the Court had held that the judgment in Fr. William Fernandez (2018) 57 GSTR 6 (SC) applied with full force. The Court found that the Tamil Nadu Act was pari materia to the Kerala enactment considered by the Supreme Court, which had upheld the levy of entry tax on imported vehicles. Therefore, the Court concluded that the prayers sought by the writ petitioners were not tenable and the writ petitions were liable to be dismissed. No costs were awarded, and interim applications were closed.
Key Issues
1. Whether the provisions of the Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990, are unconstitutional and ultra vires Articles 14, 19(1)(g), 301, and 304(a) and (b) of the Constitution of India? 2. Whether the levy of entry tax under the said Act is non-compensatory in nature, rendering it unenforceable? The petitioners argued that the Act was unconstitutional and unenforceable, particularly relying on the finding that the tax was not compensatory, referencing the Supreme Court's judgment in a case reported in 145 STC 544 and a High Court judgment in MR.R. Gandhi Vs. State of Tamil Nadu reported in 13 VST 390. The respondents, represented by the Additional Government Pleader, did not present any specific arguments in the judgment, but the Court's decision was based on a prior ruling.
Sections Cited
Not specified
AI-generated summary — verify with the full judgment below
Before: AND and
Heard together (2 matters)
Read from the judgment's own cause title. This page is filed under one of them.
(Order of the Court was made by the Hon'ble the Chief Justice) Counsel for petitioners state that, in view of the finding of this Court in the case of V.Krishnamurthy v. State of Tamil Nadu and others1, the present petitions may be dismissed.
It will be apposite to reproduce Paragraph 67 of the said judgment as under : ''
Thus, in our considered view, the judgment in the case of 1 (Order dated 29.1.2019 passed in W.P.No.32710 of 2005 etc.) 5/8 https://www.mhc.tn.gov.in/judis
WP(MD). No.10796 & 16863 of 2015 etc Fr.William Fernandez (2018) 57 GSTR 6 (SC) applies with full force to the cases on hand which arise under the provisions of the Tamil Nadu Act which is pari materia to the Kerala enactment, which was considered by the honourable Supreme Court and levy of entry tax on imported vehicles was upheld. Thus, we are of the clear view that the prayer sought for by the writ petitioners in these cases are not tenable and the writ petitions are liable to be dismissed.''
Writ Petitions stand dismissed accordingly. There shall be no order as to costs. Consequently, interim applications stand closed. (K.R.SHRIRAM, C.J.) (P.B.BALAJI, J.) 07.04.2025 NCC : Yes/No Index : Yes/No Sm 6/8 https://www.mhc.tn.gov.in/judis
WP(MD). No.10796 & 16863 of 2015 etc TO:-
The Secretary, Commercial Taxes & Religious Endowments Department, Fort St. George, Chennai - 9. 2. The Commercial Tax Officer, Aruppukottai Assessment Circle, Aruppukottai Taluk, Virudhunagar District.
The Assistant Commissioner (CT), Thirupparamkundram Assessment Circle, Madurai – 20. 4. The Regional Transport Officer, Virudhunagar Opp. Collectrate Complex, Surakudi, Virudhunagar District.
The Regional Transport Officer, Madurai (South). 7/8 https://www.mhc.tn.gov.in/judis
WP(MD). No.10796 & 16863 of 2015 etc THE HON'BLE CHIEF JUSTICE AND P.B.BALAJI, J. Sm COMMON ORDER IN WP(MD) No.10796 & 16863 of 2015 and 9067, 9068 & 20218 of 2016 Date: 07.04.2025 8/8 https://www.mhc.tn.gov.in/judis
Reproduced from the public record of the Madras High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.