Facts of the Case

This is an Entry Tax case, a distinct levy from GST, filed as far back as 2014. BILT Graphic Paper Products Ltd. challenged the constitutional validity of the Orissa Entry Tax Act, 1999, as violative of Article 301 of the Constitution and other Articles, and separately challenged a specific notice (dated 07.08.2009), an audit visit report, and an Assessment Order (dated 18.02.2023) demanding Entry Tax of Rs. 11,98,218 along with a penalty of Rs. 23,96,436 on goods imported into Orissa.

Issues Involved

  1. Whether the constitutional challenge to the Orissa Entry Tax Act, 1999 survived for adjudication.
  2. Whether the challenge to the specific Assessment Order and Demand Notice should be entertained by the writ court or left to the statutory appellate forum.

Petitioner's Arguments

  • The Orissa Entry Tax Act, 1999 and its rules were ultra vires and violative of Article 301 (and other Articles) of the Constitution, being non-compensatory in nature.
  • The specific assessment order and demand notice were contrary to law and violative of natural justice.

Respondent's Arguments

  • No specific counter-arguments are recorded beyond noting that the general constitutional questions had already been settled and that the specific assessment order was appealable.

Court Order / Findings

  • Both counsel agreed that the general reliefs concerning the constitutional validity of the Entry Tax Act had already been decided by the Supreme Court in Jindal Stainless Ltd. v. State of Haryana and a subsequent order in State of Orissa v. Reliance Industries Ltd.
  • As for the specific challenge to the Assessment Order dated 18.02.2023 and the Demand Notice, both counsel agreed that this was appealable.
  • The Court disposed of the writ petition, permitting the petitioner to pursue the statutory appeal in accordance with law.

Important Clarification

This is not a GST case at all — Entry Tax is a separate, older levy on goods entering a local area, and the specific assessment challenged here was left entirely to the statutory appellate authority to decide on its own merits.

Sections Involved

  • Orissa Entry Tax Act, 1999
  • Constitution of India — Article 301 and related provisions on freedom of trade

Decision – In Favour of

Disposed of without a decision on the specific assessment's merits; the petitioner was relegated to the statutory appeal process for that limited challenge.

Case Details

Court: High Court of Orissa at Cuttack  |  Case No.: W.P.(C) No. 4258 of 2014  |  Coram: Dr. Justice B.R. Sarangi and Mr. Justice M.S. Raman  |  Date: 10 May 2023

Link to Download the Order

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