There has been a lot of confusion off late about the levy of entry
tax on import of sugar from outside the State of Punjab. The Excise and
Taxation Department has been recovering entry tax on sugar imported from
outside the state of Punjab.
The new entry tax law legislated by Punjab Government I.e. Punjab
Development of trade commerce and Industries (Validation) Act is under
challenge before the Punjab & Haryana High Court in CWP no 26998 of
2015. In the said Writ petition while passing an interim order on 27.04.2016
not only the stay on recovery of entry tax on sugar levied under an earlier
ordinance I.e Ordinance no 1 of 2015 has been continued by the Hon'ble High
Court but also it has been conceded by the Government councel in the court that
no notification for leving entry tax on sugar under new law (i.e
validation Act) has been issued till date.
Thus it is very much clear that no entry tax is leviable on sugar
imported from outside State of Punjab till date. Hence any recovery made in
this regard at the check post by the Department is illegal.
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