Cal­cutta HC Stays En­try Tax on West Ben­gal Eship­ments

In­terim re­lief for Flip­kart in fight against West Ben­gal govt’s en­try tax

The Economic Times - - Disruption: - Surabhi.Agar­wal @times­group.com

New Delhi: Af­ter get­ting a stay from the Ut­tarak­hand High Court over the is­sue of en­try tax, Flip­kart has sued the gov­ern­ment of West Ben­gal over a sim­i­lar is­sue. The ecom­merce firm has also man­aged to get a favourable judge­ment from the Cal­cutta High Court, which could act as a de­ter­rent for other states that are in the process of im­pos­ing en­try taxes on goods bought on­line.

The pe­ti­tion has been filed by In­stakart Ser­vices that runs the lo­gis-

WHAT HAP­PENED

court has said that the state can­not in­sist on the pay­ment of en­try tax. “As a con­se­quence, the pe­ti­tioner will be en­ti­tled to gen­er­ate way­bills in terms of the said rule with­out pay­ment of any en­try tax and if the pro­gramme or the sys­tem has to be al­tered for such pur­pose, the state is di­rected to do so im­me­di­ately such that no in­con­ve­nience is oc­ca­sioned to the pe­ti­tioner in the elec­tronic gen­er­a­tion of way­bills with­out pay­ment of en­try tax,” said the or­der, a copy of which was re­viewed by ET.

The state of West Ben­gal on the other hand had ar­gued that since mat­ters of sim­i­lar na­ture from con­sumer and was re­duc­ing the ben­e­fits of ecom­merce for the res­i­dents of West Ben­gal,” added the spokesper­son. ET had re­ported in March that Flip­kart sued the state of Ut­tarak­hand for its de­ci­sion to im­pose a 10% en­try tax, call­ing the levy “dis­crim­i­na­tory”.

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