Madras High Court
Mahindra & Mahindra Limited vs The Deputy Commissioner (St) - Ii on 8 January, 2024
Author: R. Mahadevan
Bench: R.Mahadevan, Mohammed Shaffiq
W.A.Nos. 1307, 1309, 1310, 1311 and 1245 of 2022
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 08.01.2024
CORAM :
THE HONOURABLE MR.JUSTICE R.MAHADEVAN
and
THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ
Writ Appeal Nos.1307, 1309, 1310, 1311 and 1245 of 2022
and
CMP.Nos.8265, 8272, 8275, 8276 and 7860 of 2022
Mahindra & Mahindra Limited,
Rep. by Shri R. K. Sairam,
Manager Finance & Accounts (AD),
Mahindra Towers, 1st Floor,
No.17/18, Patullos Road, Chennai - 600 002.
.. Appellant in all Writ Appeals
Versus
The Deputy Commissioner (ST) - II,
Large Tax Payers Unit,
Integrated Commercial Taxes and Registration Building,
No.571, Anna Salai, Nandanam,
Chennai 600 035. .. Respondent in all Writ Appeals
Prayer in WA.No.1307 of 2022: Writ Appeal filed under Clause 15 of Letters
Patent praying to set aside the order dated 21.04.2022 passed by the learned
Judge in WMP.No.9398 of 2022 in W.P.No.9655 of 2022.
Prayer in WA.No.1309 of 2022: Writ Appeal filed under Clause 15 of Letters
Patent praying to set aside the order dated 20.04.2022 passed by the learned
Judge in WMP.No.9471 of 2022 in W.P.No.9755 of 2022.
Prayer in WA.No.1310 of 2022: Writ Appeal filed under Clause 15 of Letters
Patent praying to set aside the order dated 22.04.2022 made in WMP.No.9503
of 2022 in W.P.No.9783 of 2022.
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1/7
W.A.Nos. 1307, 1309, 1310, 1311 and 1245 of 2022
Prayer in WA.No.1311 of 2022: Writ Appeal filed under Clause 15 of Letters
Patent praying to set aside the order dated 22.04.2022 passed by the learned
Judge in WMP.No.9550 of 2022 in W.P.No.9844 of 2022.
Prayer in WA.No.1245 of 2022: Writ Appeal filed under Clause 15 of Letters
Patent praying to set aside the order dated 18.04.2022 passed by the learned
Judge in WMP.No.9026 of 2022 in W.P.No.9264 of 2022.
For Appellant : Mr.Joseph Prabakar in all cases
For Respondent : Mr.Haza Nazirrudeen,
Additional Advocate General,
assisted by Mr.M.Venkateswaran,
Special Government Pleader, in all cases
COMMON JUDGMENT
(Judgment of the Court was made by R. MAHADEVAN, J.)
The challenge made in these writ appeals is to the interim orders passed
by the learned Judge in the respective writ petitions filed by the appellant
herein, against the revision orders passed by the respondent relating to the
assessment years 2010-11, 2009-10, 2006-07, 2008-09 and 2007-08
respectively.
2.According to the appellant / writ petitioner, they are dealer in Motor
vehicles in the State of Tamil Nadu and having manufacturing facility for
various Motor Vehicles in the State of Maharashtra. During the assessment
years in question, they brought four wheelers, three wheelers and tractors into
https://www.mhc.tn.gov.in/judis
the State of Tamil Nadu from the factory of the appellant located in
W.A.Nos. 1307, 1309, 1310, 1311 and 1245 of 2022
Maharashtra and paid appropriate entry tax on these motor vehicles under the
Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990 (in
short, “the Act”). They duly filed their returns disclosing the value of motor
vehicles imported into the State and the Entry tax paid thereon. However,
raising an issue relating to value of motor vehicles, on which entry tax is paid
based on audit inspection conducted by the enforcement officials, the
respondent passed the orders dated 14.05.2014 relating to the assessment
years in question, demanding Entry Tax on freight and insurance charges
calculated at 5% on the value of motor vehicles. Challenging the same, the
appellant preferred writ petitions, which were disposed of by remanding the
matter to the respondent for fresh consideration. Pursuant to the same, the
respondent passed the orders of revision dated 25.02.2022/01.03.2022,
reiterating the same stand as taken earlier and determining the entry tax under
section 8 of the Act, by including freight and insurance charges. Aggrieved by
the same, the appellant preferred writ petitions, wherein, the learned Judge, by
way of separate interim orders, directed the appellant to pay 15% of the
amount demanded by the respondent, in respect of the assessment years 2010-
11, 2009-10, 2006-07 and 2008-09 and pay 50% of the demand raised, in
respect of the assessment year 2007-08, within a period of four weeks.
Challenging the same, the appellant is before this court with the present
appeals.
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W.A.Nos. 1307, 1309, 1310, 1311 and 1245 of 2022
3.The main contention of the learned counsel for the appellant is that the
respondent in the orders impugned in the writ petitions, has categorically
admitted that sale price of the vehicle was higher than the stock transfer price,
which would go to show that the amount of VAT paid on the vehicle was
higher than the amount of Entry Tax paid, while so, they ought not to have
demanded entry tax on freight and insurance charges calculated at 5% on the
value of motor vehicles. It is also submitted that as per section 8(5) of the Act,
there is a limitation of three years, within which assessment orders under
section 8(3) or 8(4) should be passed, whereas in the present case, the orders
of assessment have been passed after the limitation period and on this ground
alone, the orders impugned in the writ petitions are liable to be set aside.
Without taking note of the same, the learned Judge erred in directing the
appellant to pay 15% of the demand raised by the respondent, in respect of the
assessment years 2010-11, 2009-10, 2006-07 and 2008-09 and pay 50% of the
demand raised, in respect of the assessment year 2007-08, by way of interim
orders, which will have to be set aside. It is also submitted that the appellant is
facing financial constrains and is unable to pay such a huge tax liability to the
respondent within the time stipulated by the learned Judge and that, the
respondent is initiating recovery proceedings by attaching the bank accounts of
the appellant.
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W.A.Nos. 1307, 1309, 1310, 1311 and 1245 of 2022
4.On the other hand, the learned Additional Advocate General appearing
for the respondent made his submissions reiterating the findings of the
respondent rendered in the orders impugned in the writ petitions and submitted
that the orders of the learned Judge need not be interfered with.
5.Upon considering the submissions made by the learned counsel on
either side and perusal of the documents enclosed in the typed set of papers,
this court is of the opinion that the orders impugned herein, have been passed
by the learned Judge as an interim measure, in order to protect the interest of
the appellant. The main issue relating to the demand of entry tax by the
respondent by including freight and insurance charges on the value of the
motor vehicles purchased by the appellant, is yet to be determined by the
learned Judge and is pending consideration in the writ petitions. Hence, there is
no requirement to interfere with the orders of the learned Judge.
6.However, considering the financial constrains expressed by the learned
counsel for the appellant and the quantum of tax demanded in respect of the
assessment years in question, this court is inclined to modify the orders of the
learned Judge by reducing the quantum of amount directed to be paid by the
appellant, in the following terms:
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W.A.Nos. 1307, 1309, 1310, 1311 and 1245 of 2022
(i) There shall be an order of interim stay on condition that the appellant
pays 10% of the demand raised by the respondent, in each of the assessment
years 2010-11, 2009-10, 2006-07, 2008-09 and 2007-08, within a period of
one week from the date of receipt of a copy of this order, failing which, it is
open to the authorities to proceed further for recovery of entire arrears without
further reference to this court.
(ii) On such payment, the attachment on the bank accounts of the
appellant, if any, shall be lifted forthwith.
7.With the aforesaid modifications, all the appeals stand disposed of.
No costs. Consequently, the connected Miscellaneous petitions are closed.
[R.M.D., J.] [M.S.Q.,
J.]
08.01.2024
Index : Yes / No
Internet : Yes / No
av
To
The Deputy Commissioner (ST) - II,
Large Tax Payers Unit,
Integrated Commercial Taxes and Registration Building,
No.571, Anna Salai, Nandanam,
Chennai 600 035.
https://www.mhc.tn.gov.in/judis
W.A.Nos. 1307, 1309, 1310, 1311 and 1245 of 2022
R. MAHADEVAN, J.
and
MOHAMMED SHAFFIQ, J.
av
Writ Appeal Nos.1307, 1309, 1310, 1311 and 1245 of 2022
and
CMP.Nos.8265, 8272, 8275, 8276 and 7860 of 2022
08.01.2024
https://www.mhc.tn.gov.in/judis
