In Brief
Manufacturers of beer and Indian-made foreign liquor sold to State warehouses, which then distributed to retail licensees. The manufacturers challenged entry tax liability. The Supreme Court held that even though the transaction involves two independent sales (manufacturer-to-warehouse and warehouse-to-retailer), the manufacturers caused the goods' entry into local areas and remain liable for entry tax under Section 3 of the Madhya Pradesh Entry Tax Act, 1976. The Court rejected the argument that Section 3B required a prior notification to impose entry tax, holding that Section 3B is merely a machinery provision, and the general assessment procedure in Section 14 applies. The appeals were dismissed.
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