No SC reprieve for Vedanta, Tatas in Orissa entry tax case

A bench headed by Justice HL Dattu, while issuing notice to the state government, refused to grant interim stay against the Orissa High Court’s order that upheld the state’s decision to tax the import of capital goods under the provisions of the Orissa Entry Tax Rules, 1999. However, the state government said it will not take any coercive action against the firms.

Big companies, such as Vedanta Aluminium, Essar Steel, Tata Steel, Adani, Bharti Telemedia, Hindalco and MSP Metallics have challenged the levy. Vedanta is allegedly liable to pay entry tax dues of around R153 crore.

VAL senior counsel Harish Salve argued that the firm doesn’t need any interim protection as the apex court had already stayed such recovery in case of Sterlite Energy.

According to these companies, raw materials and consumables such as coal and alumina, where the sale takes place during the course of import or outside the territory of India and customs duty is paid, imposition of entry tax on such goods under the Act is arbitrary and ultra vires of the Constitution.

Customs duty is covered under Entry 83 of List I of the Seventh schedule to the Constitution and is, therefore, clearly within the domain of Parliament. The companies

... contd.