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HC disposes of pleas challenging entry tax on online orders

Press Trust of India  |  Ahmedabad 

The High today disposed of a set of petitions filed by e-commerce players Flipkart, Amazon, and Instakart challenging the entry imposed by the state on the goods purchased through e-commerce portals.

A division bench of Chief Justice R Subhash Reddy and Justice V M Pancholi disposed of the petitions in view of a recent Supreme judgement, which upheld the validity of entry imposed by the states.

The high court, however, allowed the petitioners to approach the relevant adjudicating authorities for raising procedural matters arising from the imposition of entry

The Supreme had last month upheld the constitutional validity of the state legislations with regard to the levy of entry on goods coming from other states, ruling that legislation by the state does not require the consent of the President under Article 304 of the Constitution.

Internet Pvt Ltd, Amazon Seller Services Pvt Ltd, and Instakart Services Pvt Ltd had in April and May moved the high with petitions challenging the imposition of entry by on goods purchased on e-commerce platforms.

The petitioners claimed that the state government's amendment to the law to levy entry on goods purchased through e-commerce portals was discriminatory as no such is imposed on goods brought into through other modes of sale.

They argued that they only provide online platform to manufacturers, traders and buyers and are themselves not involved in selling any product and hence the is unjustified.

However, the had argued that it was done to provide a level-playing field to traders and retailers in the state.

The on Entry of Specified Goods into Local Areas (Amendment) Bill, was passed on March 31 this year. From April 1, any goods being purchased online is being subject to 5 to 15 per cent entry While normal goods are being levied five per cent tax, specified goods are subject to up to 15 per cent

The bill amended the Act of 2001 to bring e-commerce transactions in its ambit, as it felt this was adversely-affecting local traders.

The new law amends the word "importer" to cover those who "bring or facilitate to bring any specified goods for consumption, use or sale in from any part of the country using online platforms.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, December 01 2016. 22:48 IST