RANJAN GOGOI,J. - (1.) THE validity of the Assam Entry Tax Act, 2008 and the Rules framed thereunder along with the provisions of the Assam Entry Tax (Amendment) Ordinance, 2008 have been questioned in this group of writ petitions. Consequently, all the writ petitions were heard together and are being answered by means of this common order.
(2.) BEFORE adverting to the specific grounds of challenge as unfolded by the laborious arguments advanced on behalf of the contesting parties it will be useful to notice, though very briefly, the somewhat chequered history of the impugned legislation and the earlier challenges made before this Court as against the predecessor legislations. The Assam Entry Tax Act, 2001 (hereinafter referred to as 'the Act of 2001') which is the predecessor legislation was brought into force with effect from 01. 10. 2001. The said Act which was enacted in exercise of powers under Article 246 read with the Entry 52 of List II of the 7th Schedule to the Constitution of India had the following Objects and Reasons : "statement OF OBJECTS AND REASONS It has come to the notice of the Government that many bulk consumers such as tea companies, oil companies etc. take recourse to inter-State purchase of several items required for their own consumption with a view to availing benefit of lower rate of tax under the Central Sales Tax Act. This practice deprives the State of a substantial amount of revenue. 2. Further it is also observed that due to disparity in the rate of tax in different States, motor vehicles are purchased outside the State and then brought into the State for use. 3. In order to curb such losses of revenue and thereby mobilize additional resources, the Govt. have decided to levy tax on entry of a selected items, including motor vehicles, which are imported into Assam from other States for own use and consumption. The Bill seeks to achieve above objects. "
(3.) THE Act of 2001 underwent several amendments commencing with the first amendment made effective from 19. 10. 2001 and culminating in the second Amendment Act with effect from 12. 5. 2005. The salient features of the principal Act of 2001 read with the amendments effected from time to time may now be briefly noticed. "2. Definitions- (1) In this Act, unless the context otherwise requires (b) "entry of goods into a local area" with all its grammatical variations and cognate expressions means entry of the goods as specified in the Schedule into a local area from any place outside that local area including a place outside the State for consumption, use or sale therein:. . . . . (c) "entry Tax" means a tax on the entry of goods into a local area for consumption, use or sale therein, levied and payable in accordance with the provisions of this Act; (d) "importer" means a person who brings the goods as specified in the Schedule into a local area from any place outside that local area including a place outside the State for consumption, use or sale therein including for consumption or use of such goods in works contract; (e) "local area" means the area comprised within the limits of a local authority including any area which has been or may hereafter be included in the Municipal Corporation of Guwahati, constituted under the Guwahati Municipal Corporation Act, 1969 (Assam Act 1 of 1973) or in the Municipality or Town Committee constituted under the Assam Municipal Act, 1956 (Assam Act XV of 1957) or any area comprised within a Gaon Panchayat or an Anchalik Panchayat constituted under the Assam Panchayat Act of 1994 (Assam Act XVIII of 1994 ). " . . "3. Levy of Tax - (1) There shall be levied and collected an entry tax on the entry of goods specified in the Schedule into any local area for consumption, use or sale therein at the rate, not exceeding twenty per centum, as the State Government may, by notification, fix in this behalf and different rates may be fixed for different class or classes of specified goods and such tax shall be paid by every importer of such goods, whether he imports such goods on his own account or on account of his principal or any other person or takes delivery or is entitled to take delivery of such goods on such entry. ". . . (4) The State Government may, by notification in the Official Gazette, add to, delete, amend or otherwise modify the said Schedule and also may vary the rates of tax of the goods specified in the Schedule and thereupon the said Schedule shall be deemed to have been amended accordingly. [deleted by Assam Entry Tax (Second Amendment) Act, 2005 with effect from 12. 5. 2005] "5. "exemption from tax. 5. Notwithstanding anything contained in section 3 and section 4, and subject to production of documentary proof, no tax under this Act shall be levied in respect of specified goods which are also subject to levy of tax under the provisions of the Assam Value Added Tax Act, 2003- (i) if the sales of such specified goods inside the State, made by the importer are sales within the meaning of clause (43) of section 2 of the said Act, excepting sales falling under sub-clause (ii), (iii) and (iv) of the said clause and if he is liable to pay tax on such sales as a registered dealer under the Assam Value Added Tax Act, 2003; (ii) if the sales of such specified goods are made by the importer in the course of inter state trade or commerce or in the course of export out of the territory of India or such goods are otherwise dispatched outside the State by way of stock transfer and if he is a registered dealer under the Central Sales Tax Act, 1956. " "8a. Subject to such condition as may be prescribed such sum of the proceeds of the tax as may be determined by the State Government shall be spent by the State Government for the purpose of development of trading facilities, maintenance of roads and other infrastructures in the local area. " [introduced by the Assam Entry Tax (Second Amendment) Act, 2005 with effect from 12. 5. 2005]" ;