Bharat Singh vs. State Th.Commercial Taxes Deptt.And Ors.

Held

The Court noted that the petitioners' prayer was to restrain the respondents from charging Entry Tax in the future. The Advocate General for the State fairly stated that with the introduction of GST in the State of Jammu and Kashmir with effect from 01.07.2017, no Entry Tax is being charged separately on the import of any goods under the provisions of The Jammu And Kashmir Entry Tax on Goods Act, 2000. In light of this submission, the Court found that the prayer made in the writ petitions had become infructuous. Therefore, the Court disposed of the writ petitions as nothing further survived for adjudication. The Court did not decide on the merits of the exemption or the classification of the machinery as an 'Earth Moving Machine'.

Facts

The petitioners, stone crusher owners, filed three writ petitions challenging the levy of Entry Tax on imported stone crusher machinery and parts under The Jammu And Kashmir Entry Tax on Goods Act, 2000. They relied on SRO 428 dated 19.12.2003, which exempted industrial unit holders from Entry Tax on imported plant, machinery, equipment, or consumables, subject to certain conditions. The petitioners claimed to have fulfilled these conditions. They also challenged a clarification issued by the Commissioner Commercial Taxes (No. 26 of 2008) which classified their imported plant as 'Earth Moving Machine', thereby excluding it from the exemption. The petitions sought to restrain the respondents from levying Entry Tax in the future, with no prayer for refund of tax already paid.

Key Issues

1. Whether the stone crusher machinery and parts imported by the petitioners are exempt from Entry Tax under SRO 428 dated 19.12.2003, considering the exclusion of 'Earth Moving Machine'? (Question of law) 2. Whether the clarification issued by the Commissioner Commercial Taxes (No. 26 of 2008) correctly classifies the petitioners' imported plant as an 'Earth Moving Machine' for the purpose of denying exemption? Petitioner's Arguments: The petitioners contended that their imported machinery and parts should be exempt from Entry Tax as they are industrial unit holders who have fulfilled the conditions stipulated in SRO 428. They argued that their machinery does not fall under the 'Earth Moving Machine' exclusion. Revenue's Arguments: The State, through the Advocate General, conceded that with the introduction of GST from 01.07.2017, no separate Entry Tax is being charged under the Entry Tax Act. The judgment does not record specific arguments from the revenue regarding the classification of the machinery or the validity of the clarification.