C.Chandran vs. The State Of Tamil Nadu
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The petitioner, C.Chandran, filed a writ petition seeking a declaration that the provisions of the Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990, were ultra vires Articles 14, 19(1)(g), 301, and 304(a) and (b) of the Constitution of India. The petitioner argued that the tax was non-compensatory, citing a division bench finding reported in 13 VST 390, which followed a Supreme Court judgment in 145 STC 544. The respondents were the State of Tamil Nadu, the Assistant Commissioner (CT), and the Registering Authority. The tax period is not specified. The petition was filed in 2014.
Held
The Court dismissed the writ petition. The Court referred to its own previous finding in W.P.No.32710 of 2005 in the case of V.Krishnamurthy v. State of Tamil Nadu and Others. The Court found that the judgment in Fr.William Fernandez (2018) 57 GSTR 6 (SC) applied with full force. This Supreme Court judgment upheld the levy of entry tax on imported vehicles under a Kerala enactment, which was considered pari materia to the Tamil Nadu Act. Therefore, the Court concluded that the prayer sought by the writ petitioners was not tenable and the writ petitions were liable to be dismissed. The ratio decidendi is that entry tax on vehicles, when levied under an Act similar to the Kerala enactment upheld by the Supreme Court, is valid and enforceable, even if the petitioner argues it is non-compensatory.
Key Issues
1. Whether the provisions of the Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990, are ultra vires Articles 14, 19(1)(g), 301, and 304(a) and (b) of the Constitution of India, and consequently unenforceable, on the ground that the levy is non-compensatory in nature? Petitioner's arguments: The petitioner contended that the Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990, was ultra vires the Constitution and unenforceable because the tax levied was non-compensatory. This contention was based on a division bench finding in 13 VST 390, which in turn relied on the Supreme Court's judgment in 145 STC 544. Revenue's arguments: The judgment does not record any specific arguments made by the respondents. However, the Court's decision implicitly addresses the revenue's position by upholding the validity of the Act.
Sections Cited
Articles 14, 19(1)(g), 301, 304(a), 304(b)
AI-generated summary — verify with the full judgment below
Before: AND Dr. Thangaraj Salai,
(Order of the Court was made by the Hon'ble The Chief Justice) Counsel for petitioner states, in view of the finding of this Court in W.P.No.32710 of 2005 in the case of V.Krishnamurthy v. State of Tamil Nadu and Others and other petitions, the present petition 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 Fr.William Fernandez (2018) 57 GSTR 6 (SC) applies with full force to the cases on hand which arise under the 2/5 https://www.mhc.tn.gov.in/judis 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 Petition stands dismissed accordingly. No costs. Consequently, the connected M.P.(MD) No.1 of 2014 is closed.
(K.R.SHRIRAM, C.J.) (L.VICTORIA GOWRI, J.) 19.12.2024 NCC : Yes/No Index : Yes/No dixit To 1 The State of Tamil Nadu, Rep. by the Secretary to Government, Commercial Taxes Department, Fort.St.George, Chennai – 600 009. 2 The Assistant Commissioner (CT), Thallakulam Assessment Circle, C.T. Buildings, Dr. Thangaraj Salai, Madurai – 625 020. 3/5 https://www.mhc.tn.gov.in/judis 3 The Registering Authority, Regional Transport Officer, Madurai North, Madurai. 4/5 https://www.mhc.tn.gov.in/judis THE HON'BLE CHIEF JUSTICE AND L.VICTORIA GOWRI, J. dixit WP(MD) No.19675 of 2014 Date : 19/12/2024 5/5 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.