Calcutta HC Stays Entry Tax on West Bengal Eshipments
Interim relief for Flipkart in fight against West Bengal govt’s entry tax
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-
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”.