Vijay was found guilty of not paying entrance tax on his Rolls-Royce Ghost and fined Rs 1 lakh, but his counsel argued that the punishment should have been 2 percent every month instead of 400 percent during the most recent hearing.
Vijay has been ordered by Tamil Nadu’s commercial tax department to pay entrance tax on his Rolls-Royce, which he bought from the United States in 2005. On Vijay’s behalf, an appeal was filed at the Madras High Court to have the tax discharged.
Vijay paid Rs 7,98,075 in entrance tax in September 2021 after learning that states had the jurisdiction to collect entry taxes and the Commercial Tax Department thereafter requested a fine of Rs 30,23,609 for non-payment of tax between December 2005 and September 2021.
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Vijay’s counsel stated during the hearing on March 14, 2022, that they would be fined just 2 percent each month from the time the automobile was imported, but the amount ended up being 400 percent. On the other side, the department of commercial taxes wants the case dismissed in favour of a fine for late tax payment.
India’s import tariffs are among the highest in the world, and individuals would go to any length to avoid paying them. The Rolls-Royce Ghost, for example, is the most affordable Rolls-Royce in the line-up, but it still costs over Rs 5 crore in India, thus the import tax for a car like that might be in the lakhs.
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