**Bhubaneswar:** Following Supreme Court’s verdict in favour of the Odisha Government on Friday after a long legal battle with the Vedanta Aluminium Limited (VAL) over levy of Entry Tax, the State exchequer is all set to earn Rs 1500 crore plus interest.
A nine-judge Constitution bench of the apex court ruled that the State Government is competent to levy Entry Tax under the Article 304 of the Constitution of India on movement of goods and as per the laws of State Government.
Briefing media soon after the legal victory, Pradeep Amat, Finance Minister said, “Odisha Government has won the long legal battle in the Supreme Court against the Vedanta Aluminium Limited over the validity of entry tax in a nine-judge Constitution bench today (Friday).”
“In pursuance to the interim orders of Supreme Court of India and High Court of Orissa, some dealers have paid 50% of Entry Tax due on imported scheduled goods and some dealers have paid one third of Entry Tax due on scheduled goods brought/procured from outside the State which is not manufactured. It is expected that the dealers will pay the balance pending Entry Tax of about Rs 1500 crore and interest thereon after the Division Benches vacate the stay,” informed the Odisha Finance Minister.
Notably, VAL had filed a special leave petition (SLP) in the Supreme Court challenging the Odisha Entry Tax Act, 1999.
VAL had contended that goods imported from outside India could not be eligible for Entry Tax which a dealer is liable to pay on the event of entry of goods into a local area for use, consumption or sale.
Need to be mentioned that Entry Tax is imposed by State Governments on movement of goods from one State to another that receives goods.
Various corporate houses and business entities had contended that the imposition of entry tax is violation of the right to freedom of trade and commerce in India, guaranteed under Article 301 of the Constitution.