Shimla: Himachal Pradesh High Court has allowed the state excise and taxation department to continue the implementation of HP Entry Tax Act in the state to collect entry tax on bringing goods for consumption, sale and construction from outside state, senior official told HimVani.
Confirming the court order regarding implementation of the Act, joint excise and taxation commissioner of Himachal Pradesh, NC Beakta told HimVani that Himachal Pradesh High Court has given the green signal by passing orders on July 20 to continue entry tax after hearing the plea of both the parties as a petition was filed before the court by Red & White Citrate company M/s. Godfry Philips Ltd.
He said that the court has given some relief to petitioners but it would not be applied to general users. He said that initially the department was collecting this tax at the barriers but now it would have to be filed by the parties in separate installments and return basis on time-bound frames.
HP Entry Tax Act, to impose levy up to seven per cent on the transit of certain goods, was passed by the state assembly during the last budget session amid opposition walk-out over the issue. The Act was enacted to generate around Rs 50 crore annually, targeting most of hydropower companies and industrial houses who have been bringing goods for consumption, sale and construction from outside the state without paying any tax to the state account.
The Tax would be collected retrospectively since its implementation from April 2010. The department has devised a mechanism to cross check the return filed by the parties with entries of goods at barriers.
The state government claims that the step would help check tax leakage rather than burdening the common man. The official said that it would target only big companies that are doing mega projects on a turnkey basis.