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Jharkhand High Court
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Ranchi, April 3: Jharkhand High Court today set aside an order of the government to impose entry tax on as many as 63 goods that are brought into the state, citing the toll was unwarranted.
A division bench of Chief Justice Prakash Tatia and Justice Aparesh Kumar Singh ordered that the entry tax charged by the state be scrapped.
The government had taken the decision to impose entry tax on goods as per the Jharkhand Entry Tax on Goods for Consumption or Use Act, enacted in 2011. The government had issued a notification in August last year declaring the entry tax would be charged between 4 to 15 per cent on certain goods.
The decision of the government was challenged by many companies including Abhijeet Group and Jindal Steel. The companies argued that the government move was detrimental to the interest of the business concerns.
Entry tax was imposed on several goods including cement, iron, electrical equipment like air conditioners, air coolers, cameras, ATM machines, batteries and asbestos sheets. The government had tried to impress upon the court that the tax collected would be used for development projects in the state.
Arguing on behalf of the petitioner, senior advocate B. Poddar and Darshana Poddar said the government decision was against the constitutional mandate of practising free trade and commerce in the country. It violated the fundamental rights of an individual, the advocates said.
However, the state counsel could not inform the court what development projects would the revenues collected through entry tax be used for. The court observed that the government was not clear in its stand and ruled that the tax charged was uncalled-for.
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