Who Pays Entry Tax? Supreme Court Decides Liquor Warehouse vs. Manufacturer Case
The Supreme Court upheld the levy of entry tax on liquor manufacturers under the Madhya Pradesh Entry Tax Act, 1976. It ruled that manufacturers "caused the entry of goods" into local areas under Section 3(1) read with Section 2(3), even through state warehouses. The Court clarified that Section 3B (special provision for liquor) was merely an enabling provision, and the absence of a notification under it did not bar tax collection under Section 14 (general machinery provision). The judgment affirmed that the tax liability rests on manufacturers, not warehouses, as they initiated the goods' movement into the state.
Facts Of The Case:
The case involved M/S United Spirits Ltd. and other liquor manufacturers challenging their liability to pay entry tax under the Madhya Pradesh Entry Tax Act,...