Bombay High Court Upholds The Validity Of Goa Tax on Entry of Goods Act, 2000

The Bombay High Court has upheld the validity of the Goa Tax on Entry of Goods Act, 2000.

The bench of Justice M. S. Sonak & Justice Valmiki Sa Menezes relied on the decision of the 9-judge bench of the Supreme Court in the case of Jindal Stainless Limited and another vs. State of Haryana and ors. which upheld the constitutional validity of entry taxes imposed by states on goods coming in from other states.

The petitioners/assessee challenged the constitutional validity of the Goa Tax on Entry of Goods Act, 2000, for want of legislative competence and, in any case, for contravening Articles 14, 19(1)(g), 265, 301, and 304(a) of the Constitution of India. The petitioner sought the consequential relief of a refund of entry tax recovered by the state from the petitioners.

The Goa Legislative Assembly enacted the Entry of Goods Act, of 2000, after the bill was introduced with the previous sanction of the President. The Act provided September 1, 2000, as the appointed date on which it would come into force.

The petitioner, Bharti Telemedia Ltd. (BTL), is in the business of providing Direct Home (DTH) services in various states in India, including the State of Goa, under a license issued in terms of the Indian Telegraph Act 1885. Similarly, the petitioner, Bharti Airtel Ltd. (BAL), is in the business of providing cellular telecommunication services in various states in India, including the State of Goa, also under a similar license under the Indian Telegraph Act, of 1885.

The petitioners urged that the entry tax be related to the levy of import duties under Entry 41, read with Entry 83 of List I of the Seventh Schedule to the Constitution. The state legislature has no legislative competence to enact the Goa Tax on Entry of Goods Act, of 2000. The Act and the levy of the tax violate Articles 14, 19(1)(g), 265, and 301 of the Constitution of India.

The court dismissed the petition and vacated the interim order. The rule in both of these petitions is discharged.

Case Title: M/s Bharti Telemedia Ltd. Versus State of Goa

Case No.: Writ Petition No. 541 Of 2010

Citation: 2023 LiveLaw (Bom) 227

Date: 24.04.2023

Counsel For Petitioner: Shivan Desai

Counsel For Respondent: Sapna Mordekar

Click Here To Read The Order