Orissa entry tax: SC asks 16 firms to deposit R175 crhttps://indianexpress.com/article/news-archive/web/orissa-entry-tax-sc-asks-16-firms-to-deposit-r175-cr/

Orissa entry tax: SC asks 16 firms to deposit R175 cr

The bench had last month asked Orissa not to resort to coercive actions against the companies for recovery of entry tax dues.

The Supreme Court on Tuesday asked 16 companies,including Vedanta Aluminium,Tata Steel and Adani Enterprises,to deposit around Rs 175 crore — 50 per cent of entry tax dues allegedly payable on goods imported by them for their plants and services in Orissa between 2008 and 2012.

In an interim order,a bench led by Justice HL Dattu directed the companies to deposit 50 per cent of the state entry tax demand payable on imported plant machinery and raw materials.

It also stayed recovery of penalty imposed by the state government on companies for delayed or non-payment of tax dues and asked the companies to further pay 50 per cent of the tax demands,if raised,in future. However,the bench also clarified that the amount so deposited would be refunded to the companies in case they succeeded in the matter.

The bench had last month asked Orissa not to resort to coercive actions against the companies for recovery of entry tax dues.

The verbal restraint order had come after the counsel for the companies contended that after the notices for recovery of taxes,Garnishee proceedings were also sought to be initiated.