Dear All, Subsequent to the Order of Calcutta High Court holding the levy of Entry Tax in the State of West Bengal as unconstitutional, we have been getting queries from various assesses on the proposed course of action i.e. whether they should stop paying Entry Tax henceforth OR pay & wait till the final resolution of the levy by the Higher Forums. In our view, we should henceforth stop payment of Entry Tax [although we have opined our clients to stop payment of Entry Tax from July’12 onwards i.e. pursuant to the Interim Order of High Court in the case Tata Steel] as (i) the Final resolution of Entry Tax by the Higher Forum would take substantial amount to time & (ii) Payment of Entry Tax & getting refund of the same would be a cumbersome process [till now, no State has refunded the Entry Tax Paid since the matter is presently sub-judice before the Supreme Court]. In order to safe-guard the interest of the assessees, it is advised to file a strategic representation before the Commercial Tax Department citing the reason for non-payment of Entry Tax and also safeguarding refund, whenever it accrues. Further, it would be prudent to get the Favourable Order from the High Court in the assessee’s name so that the Department does not insist on making payment of Entry Tax. As per my information, assessees, who are not paying entry tax, are getting call from the Commercial Tax Department who are insisting them to make payment as (i) the Order of High Court is assessee-specific i.e. it does not cover assessee who have not filed Writ Petition & (ii) It is not a final judgment as the order is being appealed. We are in process of settling Writ Petition for various assessees so as to obtain a favourable order in this regard. In case you require any professional assistance, please let us know Thanks & Regards,
Posted on: Wed, 03 Jul 2013 08:59:47 +0000