KAMALASANAN Vs. STATE OF KERALA

JUDGEMENT

(1.) ALL these Original Petitions raise a common question of law, namely, whether motor vehicles imported from aboard are liable to pay entry tax.

(2.) THE vires of the Kerala Tax On Entry of Motor Vehicles into Local areas Act, 1994 came up for consideration before a Division Bench of this Court in Raj an v. State of Kerala (1995 (2) KLT369 ). THE Division Bench repelled the challenge to the various provisions of the Act and held that the state is competent to impose tax for entry of goods into local area and the same is not violative of Arts. 301 and 304 of the Constitution of India. In the light of the Division Bench judgment a very little scope is left for the challenge of the Act.

(3.) ON behalf of the State, a counter affidavit has been filed. It is stated that the object of the introduction of the legislation is to compensate the loss of revenue by consumers who avoid payment of sales tax on the vehicles by purchasing it from outside the State either within India or from outside India. The law is intended to avoid any loss of legitimate sales tax revenue in the State. The charge under S. 3 of the Act is on the entry of goods in the local area for use or sale therein and not on its purchase. Therefore, the contention that the goods had been purchased from outside the state and there is no sale liable for tax is not sustainable. According to them, the issue had been covered by the judgment of the Supreme court in shaktikumar M. Sancheti v. State of Maharashtra (1995 KLJ (Tax cases) 293 ).