The Karnataka High Court has held the Entry Tax exemption is available on Diesel Captive Generating Sets.
The bench of Justice Krishna S Dixit and Justice G Basavaraja has observed that Diesel Captive Generating Sets are exempt from tax under Section 11-A of the Karnataka Tax on Entry of Goods Act, 1979 r/w the provisions of Karnataka Value Added Tax, 2003.Â
The appellant/assessee questioned the order made by the Authority For Clarification And Advance Rulings clarifying that the Waste Heat Recovery Boilers purchased by the Appellant who caused their entry in the local area falls under Sl.No.7 of the table printed in the Notification No. FD 11 CET 2002 dated 30.03.2002 attracting entry tax at the rate of 2%.
The Assessee relied on the Notification No. FD 147 CET 2004, Bangalore, being a piece of delegated legislation, absolutely exempts commodities of the kind namely, diesel captive generation sets from entry tax.
The court held that the reasoning of the Advance Ruling Authority runs counter to the intent & policy content of the Rule Maker as has been expressed in the above Notification. This is a case of misdirection in law attributable to the Authority For Clarification And Advance Rulings.
Case Details
Case Title: M/S Mangalore Chemical And Fertilizers Limited Versus The State Of Karnataka
Case No.: Sales Tax Appeal No. 23 Of 2017
Date: 03/04/2025
Counsel For Petitioner: Ravi Raghavan
Counsel For Respondent: Aditya Vikram Bhat
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