Car import case: Actor Vijay gets relief from Madras High Court

CHENNAI:  Actor Vijay on Friday got relief from paying the penalty for entry tax for importing a BMW car. The Madras High Court ordered that he should pay the penalty for the period from January 2019 - when a judgment on liability of paying entry tax was pronounced - to December 2021, when he paid the tax in full.

Justice R Suresh Kumar passed the orders on a batch of petitions filed by C Joseph Vijay, music composer Harris Jayaraj, and a Chennai hotel, challenging payment of entry tax and levying of penalty citing limitation of time.

The judge said,"The court has no hesitation to hold that the penalty clause can be invoked by the  authorities concerned only after January 29, 2019."

Thus, Vijay would only have to pay the penalty for the period from January 29, 2019 to December 17, 2021, when he paid the entry tax of Rs 7.98 lakh, and not from the year of importing the car. However, the judge said if the petitioners had not paid the tax in full even after January 29, 2019, the authorities may impose the penalty.

Vijay imported a BMW (Sapphire Metallic) from the US in 2005. When it was taken for registration, the Transport Department insisted on payment of entry tax.

However, the car was registered after Vijay got a direction from the HC that the authorities should not press for payment of entry tax because certain cases were pending in court on the issue of levying entry tax on imported vehicles. He sold the car in 2009.

He alleged that the authorities of the Commercial Tax department remained quiet from 2005 to 2017 without sending him a notice for the tax and penalty since related matters were pending before the Supreme Court.

However, they served him a demand notice in 2017 and then issued a recovery notice on December, 2021, asking him to pay entry tax arrears of Rs 7.98 lakh and a penalty of Rs 30.23 lakh.

CHENNAI:  Actor Vijay on Friday got relief from paying the penalty for entry tax for importing a BMW car. The Madras High Court ordered that he should pay the penalty for the period from January 2019 - when a judgment on liability of paying entry tax was pronounced - to December 2021, when he paid the tax in full. Justice R Suresh Kumar passed the orders on a batch of petitions filed by C Joseph Vijay, music composer Harris Jayaraj, and a Chennai hotel, challenging payment of entry tax and levying of penalty citing limitation of time. The judge said,"The court has no hesitation to hold that the penalty clause can be invoked by the  authorities concerned only after January 29, 2019." Thus, Vijay would only have to pay the penalty for the period from January 29, 2019 to December 17, 2021, when he paid the entry tax of Rs 7.98 lakh, and not from the year of importing the car. However, the judge said if the petitioners had not paid the tax in full even after January 29, 2019, the authorities may impose the penalty. Vijay imported a BMW (Sapphire Metallic) from the US in 2005. When it was taken for registration, the Transport Department insisted on payment of entry tax. However, the car was registered after Vijay got a direction from the HC that the authorities should not press for payment of entry tax because certain cases were pending in court on the issue of levying entry tax on imported vehicles. He sold the car in 2009. He alleged that the authorities of the Commercial Tax department remained quiet from 2005 to 2017 without sending him a notice for the tax and penalty since related matters were pending before the Supreme Court. However, they served him a demand notice in 2017 and then issued a recovery notice on December, 2021, asking him to pay entry tax arrears of Rs 7.98 lakh and a penalty of Rs 30.23 lakh.