Madras High Court Restrains Taxes Department From Demanding Penalty From Music Composer Harris Jayaraj In Maserati Car Import Case

The Madras High Court has granted an interim injunction in favor of music composer Harris Jayaraj, restraining the State Tax Commissioner from demanding a penalty over delayed payment of entry tax for a Maserati Granturismo vehicle that he had purchased in 2010. The division bench of Justice R Mahadevan and Justice Mohammed Shaffiq was dealing with a plea filed by the music composer challenging an order passed by the Single Judge directing him to pay the entry tax along with the penalty, and a subsequent notice issued by the Assistant Commissioner (ST) (FAC) directing him to pay a sum of Rs. 11,50,952. Harris informed the court that he had imported the motor vehicle in 2010 for personal use and when he presented an application for registration, it was 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. He further added though a petition had been filed in the High Court to forbear the respondents from demanding/collecting entry tax, the same was dismissed. The court was informed that after this, the Assistant Commissioner had issued a notice seeking import details and later issued a recovery notice stating that Harris was in arrears of Rs. 13,07,923. It was submitted that the recovery notice was issued in grave violation of the principles of natural justice and in a premature manner. Harris informed the court that when this recovery notice was challenged, the single judge directed him to pay the entry tax along with the penalty when in other similar cases, the court had not ordered for payment of the penalty. Harris contended that this was violative of Article 14 of the Constitution which holds that every person is equal before the law. He informed the court that subsequent to this court order, the authorities have now served a notice on him directing him to pay a sum of Rs 11,50,952/- failing which 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. Case Title: J Harris Jayaraj v The Assistant Commissioner (FAC) and others Case No: WA 1017 of 2023

Madras High Court Restrains Taxes Department From Demanding Penalty From Music Composer Harris Jayaraj In Maserati Car Import Case

Upasana Sajeev

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