CHENNAI: Madras high court on Friday directed the Tamil Nadu sales tax authorities not to take any coercive action till February 1 against actor Vijay for non-payment of penalty for late payment of entry tax for his imported BMW car from the US in 2005.
Though the actor paid the entry tax, he had moved the court challenging the 400% penalty imposed for delayed payment of the tax. Justice C Saravanan passed the oral instruction while tagging the plea to a batch of similar matters. The court then adjourned the hearing to February 1.
According to the petitioner, he imported the car from the US in 2005 for his personal use as at that point of time there were no direct dealerships of the brand in the country.
As the registering authorities refused registration without payment of entry tax, the actor moved the court and obtained an order in his favour. The issue regarding the power of a state to impose entry tax was pending consideration before the court at that point of time. Subsequently, the petitioner sold the car to a third party in 2009.
However, the authorities passed an order calling upon the actor to pay Rs 7.98 lakh as entry tax and Rs 30.23 lakhs as penalty for the delay in remitting the tax. Aggrieved, the petitioner has moved the present plea.
