STATE OF MADHYA PRADESH Vs. BHARAT HEAVY ELECTRICALS
LAWS(SC)-1997-8-1
SUPREME COURT OF INDIA (FROM: MADHYA PRADESH)
Decided on
August 14,1997
STATE OF MADHYA PRADESH
Appellant
VERSUS
BHARAT HEAVY ELECTRICALS LIMITED,NEW DELHI
Respondents
Cited Judgements :-
COMMISSIONER OF SALES TAX VS. METALMAN (INDIA). [LAWS(MPH)-2006-11-104] [REFERRED TO]RAJLAXMI DYEING and PRINTING MILLS PVT LTD VS. UNION OF INDIA [LAWS(GJH)-2005-6-13] [REFERRED TO]
INMA INTERNATIONAL SECURITY VS. CCE [LAWS(CE)-2004-11-182] [REFERRED TO]
CCE VS. CHAMPION PACKAGING (P) LTD. [LAWS(CE)-2004-11-213] [REFERRED TO]
AMBUJA SYNTHETICS MILLS LTD. VS. UNION OF INDIA [LAWS(GJH)-2002-5-61] [REFERRED TO]
COMMISSIONER, CENTRAL EXCISE & CUSTOMS VS. M/S. SUN SHINE PIPES (P) LTD. [LAWS(KER)-2005-12-81] [REFERRED TO]
SHRADDHA TRIPATHI VS. ELECTION COMMISSION OF INDIA [LAWS(ALL)-2021-1-135] [REFERRED TO]
COMMISSIONER OF CUS AND C EX , MEERUT VS. CORRUFAB PVT LTD [LAWS(ALL)-2012-9-364] [REFERRED]
TRIVENI ALLOYS LTD. VS. CESTAT [LAWS(MAD)-2013-12-116] [REFERRED TO]
SONY INDIA LIMITED VS. COMMISSIONER OF CENTRAL EXCISE DELHI [LAWS(SC)-2004-5-72] [REFERRED TO]
GUNAM TRAVELS VS. COMMISSIONER OF CENTRAL EXCISE [LAWS(CE)-2005-5-164] [REFERRED TO]
WEP PERIPHERALS LTD. VS. COMMISSIONER OF CUSTOMS, CHENNAI [LAWS(CE)-2006-1-62] [REFERRED TO]
BHARAT PETROLEUM CORPORATION VS. COMMISSIONER OF CENTRAL EXCISE, [LAWS(CE)-2001-10-235] [REFERRED TO]
MOOL CHAND STEELS PVT. LTD. VS. CCE [LAWS(CE)-2004-11-147] [REFERRED TO]
COMMISSIONER CENTRAL EXCISE VS. KC ALLOYS AND STEEL CASTINGS [LAWS(P&H)-2006-8-63] [REFERRED TO]
MAHAVEERDAS SHASTRI VS. SADGURU SEVA SANGH [LAWS(MPH)-2003-7-54] [REFERRED TO]
ANIL KUMAR GULATI VS. STATE OF M P [LAWS(MPH)-2003-8-8] [REFERRED TO]
STATE OF GUJARAT VS. SAW PIPES LTD. (KNOWN AS JINDAL SAW LTD.) [LAWS(SC)-2023-4-56] [REFERRED TO]
RAJMATA PADMINI DEVI VS. STATE OF RAJASTHAN [LAWS(RAJ)-2023-9-160] [REFERRED TO]
HDFC BANK LIMITED VS. C T O ANTI EVASION RAJASTHAN [LAWS(RAJ)-2017-2-297] [REFERRED TO]
AFL PRIVATE LTD. VS. COMMISSIONER OF CUSTOMS, BANGALORE [LAWS(CE)-2005-10-56] [RELIED ON]
COMMISSIONER OF C. EX., MANGALORE VS. VISWANATH KARKERA [LAWS(CE)-2005-11-100] [RELIED ON]
COMMISSIONER OF CENTRAL EXCISE VS. S. GHOSH AND ASSOCIATES [LAWS(CE)-2005-4-180] [REFERRED TO]
INDO SWISS EMBROIDERY INDUSTRIES LIMITED VS. COMMISSIONER OF CENTRAL EXCISE, VAPI [LAWS(BOM)-2017-7-330] [REFERRED TO]
COMMISSIONER OF CENTRAL EXCISE VS. THANGAM STEELS LTD. [LAWS(CE)-2004-11-184] [REFERRED TO]
COMMISSIONER OF C. EX. VS. KUCHHAL UDYOG [LAWS(CE)-1999-9-116] [REFERRED TO]
JET AIRWAYS I LTD VS. UNION OF INDIA [LAWS(DLH)-2008-5-156] [REFERRED TO]
ADDITIONAL COMMISSIONER OF SALES TAX, VAT III, MUMBAI VS. ANKIT INTERNATIONAL [LAWS(BOM)-2011-9-196] [REFERRED TO]
COMMISSIONER OF C. EX., BANGALORE VS. TOP SECURITY LIMITED [LAWS(CE)-2007-3-125] [REFERRED TO]
D P METALS VS. STATE OF RAJASTHAN [LAWS(RAJ)-2000-8-28] [REFERRED TO]
COMMR OF C EX VS. ILLPEA PARAMOUNT PVT LTD [LAWS(P&H)-2006-7-455] [REFERRED TO]
COMMISSIONER OF C EX , CHENNAI VS. THIRUMALA ALLOYS CASTINGS (P) LTD [LAWS(MAD)-2008-3-381] [REFERRED]
M/S.ANGHINGHU NICE TOBACCO VS. CUSTOMS [LAWS(MAD)-2019-3-251] [REFERRED TO]
SAKHI GOPAL AGRAWAL VS. STATE OF M P [LAWS(MPH)-2003-8-4] [REFERRED TO]
HINDUSTAN LEVER LTD. VS. ASSISTANT COMMISSIONER OF COMMERCIAL TAX, INDORE [LAWS(MPH)-2010-9-110] [REFERRED TO]
COMMISSIONER OF CUSTOMS & CENTRAL EXCISE VS. M/S. MAJESTIC AUTO LTD. [LAWS(ALL)-2012-7-332] [REFERRED TO]
AXIALO INDUSTRIES VS. COMMISSIONER OF CENTRAL EXCISE, BANGALORE-III [LAWS(CE)-2007-9-51] [RELIED ON ]
HEWLETT PACKARD INDIA LTD. VS. COMMISSIONER OF C. EX., BANGALORE [LAWS(CE)-2003-5-165] [FOLLOWED]
COMMISSIONER OF CENTRAL EXCISE VS. GMP FINISHING MILLS [LAWS(CE)-2004-10-149] [REFERRED TO]
BAJAJ HINDUSTHAN LTD VS. UNION OF INDIA [LAWS(ALL)-2013-3-92] [REFERRED TO]
HARIPRASAD TEXTILES P. LTD. VS. CCE [LAWS(CE)-2002-11-182] [REFERRED TO]
COMMISSIONER OF CENTRAL EXCISE VS. MADRAS DIAMOND TOOLS [LAWS(CE)-2003-3-252] [REFERRED TO]
SMITHA SHETTY VS. COMMISSIONER OF CENTRAL EXCISE, BANGALORE [LAWS(CE)-2003-6-168] [REFERRED TO]
COMMISSIONER OF CENTRAL EXCISE VS. RANA STEELS [LAWS(CE)-2004-11-190] [REFERRED TO]
A.R. CABS VS. COMMISSIONER OF CENTRAL EXCISE [LAWS(CE)-2005-5-142] [REFERRED TO]
COMMISSIONER OF CENTRAL EXCISE VS. HEERA LAL SABU [LAWS(CE)-2005-5-156] [REFERRED TO]
COMMR. OF C. EX. & CUS., SURAT-I VS. KRISHNARAM DYEING & FINISHING WORKS [LAWS(GJH)-2013-1-416] [REFERRED TO]
COMMISSIONER OF CENTRAL EXCISE AND CUSTOMS VS. LOVELY FOOD INDUSTRIES POOCHAKKAL [LAWS(KER)-2006-11-7] [REFERRED TO]
WESTERN COALFIELDS LIMITED VS. COMMISSIONER OF SALES TAX [LAWS(MPH)-2007-7-124] [REFERRED TO]
COMMISSIONER OF C. EX., KOLKATA-I VS. GYMKHANA [LAWS(CE)-2007-1-129] [REFERRED TO]
COMMISSIONER OF SERVICE TAX VS. SKEMATIC CONSULTANTS [LAWS(CE)-2007-3-170] [RELIED ON]
RESIL CHEMICALS PVT. LTD. VS. COMMISSIONER OF C. EX., BANGALORE [LAWS(CE)-2009-10-65] [REFERRED TO]
COMMISSIONER CUSTOMS VS. WEBBING AND BELTING PVT LTD [LAWS(ALL)-2012-11-40] [REFERRED TO]
COMMISSIONER OF CUSTOMS AND CENTRAL EXCISE, HYDERABAD-IV VS. SUNDEN ISPAT LIMITED [LAWS(APH)-2014-4-52] [REFERRED TO]
KAROLIA TEXTILE INDUSTRIES PRIVATE LIMITED VS. UNION OF INDIA [LAWS(GJH)-2002-3-16] [REFERRED TO]
JUDGEMENT
Kirpal, J. -
(1.)The common question of law which arises in these appeals by special leave relates to the validity of Section 7(5) of The Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976 (hereinafter referred to, for the sake of convenience, the Entry Tax Act). The said provision having been successfully challenged by the respondents before the Madhya Pradesh High Court, the State of Madhya Pradesh has filed the present appeals.
(2.)The facts, which are relevant for deciding the point in issue lie within a very narrow compass. The respondents are stated to be engaged in sale and purchase of various articles as raw material, some of which are brought into the local areas. They manufacture the finished goods which are sold in local areas in which they are manufactured and, subsequently, are sold outside the local area. The respondents are all registered dealers both under the Central and the State Sales Tax Act and it is the provisions of that Act which are applied for assessment and recovery of entry tax.
(3.)The Entry Tax Act was enacted with the object of levying tax on the goods brought into the local area for consumption, use or sale therein. Section 3 is the charging section and sub-section (1)(a) and (b) which are relevant are as follows:
"3. Incidence of taxation- (1) There shall be levied an entry tax-
(a) on the entry in the course of business of a dealer of goods specified in Schedule II, into each local area for consumption, use or sale therein; and
(b) on the entry in the course of business of a dealer of goods specified in Schedule III, into each local area for consumption or use of such goods as (raw material or incidental goods) or as packing material or in the execution of works contract but not for sale therein;and such tax shall be paid by every dealer liable to tax under the Sales Tax Act who has effected entry of such goods:
(Provided that no tax under this sub-section shall be levied:-
(i) to (v) ..........................."
(2.)The facts, which are relevant for deciding the point in issue lie within a very narrow compass. The respondents are stated to be engaged in sale and purchase of various articles as raw material, some of which are brought into the local areas. They manufacture the finished goods which are sold in local areas in which they are manufactured and, subsequently, are sold outside the local area. The respondents are all registered dealers both under the Central and the State Sales Tax Act and it is the provisions of that Act which are applied for assessment and recovery of entry tax.
(3.)The Entry Tax Act was enacted with the object of levying tax on the goods brought into the local area for consumption, use or sale therein. Section 3 is the charging section and sub-section (1)(a) and (b) which are relevant are as follows:
"3. Incidence of taxation- (1) There shall be levied an entry tax-
(a) on the entry in the course of business of a dealer of goods specified in Schedule II, into each local area for consumption, use or sale therein; and
(b) on the entry in the course of business of a dealer of goods specified in Schedule III, into each local area for consumption or use of such goods as (raw material or incidental goods) or as packing material or in the execution of works contract but not for sale therein;and such tax shall be paid by every dealer liable to tax under the Sales Tax Act who has effected entry of such goods:
(Provided that no tax under this sub-section shall be levied:-
(i) to (v) ..........................."
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