The decision of the Divisional Bench of J&K High Court that the Dishnet Wireless Ltd. should have deposited the amount of Entry Tax with the Commercial Tax Department is significant in the sense that the law pertaining to the State Entry Tax is duly honoured and implemented. The Court has ordered that a sum of Rs. 44 crore deposited by the cellular company with the J&K Bank in the shape of FDRs be released and passed on to the Commercial Tax Department within one week. The Dishnet Wireless Ltd. has been importing into the state equipment needed for the communication towers raised throughout the State. This equipment is subject to entry tax which the Commercial Tax Department claimed. The Dishnet Wireless Ltd. sought intervention by the court but failed to establish its case. The court verdict is also significant in the sense that other companies dealing in such material as is used by the said cellular company will ensure that they do not fail to deposit the tax money with the Commercial Tax Department when importing communication and other equipment into the state. The cellular company had no claim to the amount of interest accruing on account of depositing 44 crore rupees with J&K in the shape of FDRs. Taxes have to be paid and not just deposited on one or the other pretext.
Trending Now
E-Paper
Follow our WhatsApp channel