The Madras High Court in the case J Harris Jayaraj v The Assistant Commissioner (FAC) and others observed and has granted an interim injunction in favor of music composer Harris Jayaraj, wherein it restrained the State Tax Commissioner from demanding a penalty over the payment which is being delayed of entry tax for a Maserati Granturismo vehicle that he had purchased in the year 2010.
The division bench comprising of Justice R Mahadevan and Justice Mohammed Shaffiq in the case observed wherein the plea was moved by the music composer wherein it challenged the order passed by the Single Judge wherein it has been directed by him to pay the entry tax along with the penalty, and a subsequent notice which is being issued by the Assistant Commissioner, ST (FAC) wherein directing him to pay an amount of Rs. 11,50,952.
The court in the said case was also being informed by Harris that he had imported the motor vehicle in the year 2010 for personal use and when he presented an application for registration, the same was being rejected by the Regional Transport Officer stating that the vehicle had not been subjected to Entry Tax under the Tamil Nadu Entry Tax Act 1990 and the rules therein.
Further, it has been added by him in the plea moved in the High Court to forbear the respondents from demanding or collecting the entry tax, the court dismissed the same.
Therefore, the court in the said case was also being informed that after this, the notice is issued by the Assistant Commissioner wherein seeking import details and later a recovery notice was issued stating that Harris was in arrears for an amount of Rs. 13,07,923.
It has also been submitted before the court that the recovery notice was being issued in grave violation of the principles of natural justice and in the premature manner.
The court was informed by Harris that when the said recovery was challenged, the single judge directed him to pay the entry tax along with the penalty when in other similar cases, the court in the case had not ordered for the payment of the penalty. Thus, it has also been contended by Harris that this being the violative of Article 14 of the Constitution which holds that every person is equal before the law.
In the said case, he was also being informed by the court that subsequent to the order of the court, the notice have been served by the authorities on him directing him to pay an amount of Rs 11,50,952/- and failing to which an action will be taken under the Revenue Recovery Act. Harris submitted that the impugned notice is improper and that he had already paid the entry tax.
