CHENNAI: Madras high court on Friday reiterated the right of the state government in imposing entry tax for luxury cars imported from other countries.
However, the penalty for non-payment of such tax can be imposed only from 2019, when a division bench of the court confirmed such right of the state, Justice R Suresh Kumar said.
The division bench passed the order on January 29, 2019.
The court passed the order while disposing of pleas moved by actor Vijay, music director Harris Jayaraj and many other celebrities.
In January, Vijay moved the court challenging a notice issued by the commercial taxes department dated September 17, 2021 demanding 7.98 lakh as entry tax, along with penalty of 30.23 lakh for having imported a BMW X5 luxury car from the US in 2005.
Harris Jayaraj’s case was that he imported two vehicles in 2010 for which registration was denied in the state for non-payment of entry tax. Later, in 2019 the department issued a demand notice for payment of arrears to the tune of 13 lakh.
