In a petition filed by the District Tax Bar Association (sales tax) along with Punjab Tax Bar,it was stated that the collection of entry tax by the Excise and Taxation department is illegal. Punjab and Haryana High Court has also issued a notice of motion to the state of Punjab for August 27. According to the petitioners,the department has adopted a novel method of illegal collection of entry tax from those who are eligible for exemption from the tax.
Division bench of Justice A.K Mittal and Justice G.S Sindhawalia have issued notice to the Punjab Government and the excise and taxation commissioner Punjab.
Varinder Singh,president of tax bar association said,After general polls in Punjab,the taxation department issued verbal instructions and on that basis dealers are being stopped at the Information Collection Centres (ICCs) at the time of entry into the state with goods and are asked to produce an entry tax exemption certificate. The certificates are being asked on a random basis. There is no requirement to produce such a certificate.
The press secretary of the association,Ashish Thaman said,A case regarding entry tax is pending in HC,collection of this tax is not justified. Our association has thus filed a fresh petition and is fighting on behalf of the dealers.
Amrik Singh,Director of investigations of the taxation dept said: I am not aware of any fresh petition,but an old petition regarding entry tax is still pending in court.
Asked about the certificate requirement,Amrik Singh said,It is a form of undertaking. A petition is still pending in court regarding entry tax,so all those who want to seek exemption need to give an undertaking that in case the court decides in favour of the tax then they will have to pay back taxes.