The Supreme Court has overruled the West Bengal Taxation Tribunal and declared that the demonstration of a machine at an exhibition can be considered its use and therefore, entry tax will be payable on the machine for such use, though it may be displayed free of cost to the public.
A division bench consisting of Justice SP Bharucha, Justice Santosh Hegde and Justice YK Sabharwal, thus, allowed the appeal of the West Bengal revenue authorities against the application of refund by Mahindra & Mahindra.
The company had already paid the tax, but later it sought refund of the amount under Section 19 of the Calcutta Metropolitan Area Act. The law says that entry tax will become payable for specified goods which are brought in for