The Madras High Court on Thursday, August 5 directed actor Dhanush to pay full entry tax for the Rolls Royce car the actor bought from the UK in 2015. The actor met with harsh criticisms by the court even as Dhanush’s lawyer expressed willingness to withdraw the plea, which had earlier been filed seeking entry tax exemption for the import of the luxury car.
In the judgment, Justice SM Subramaniam said that crores of poor and middle-class people are purchasing half litre and one litre of petrol for their low-end two-wheelers and they are not choosing to file cases for levy of tax or seeking exemptions. “While so, citizen enjoying reputation in the society on importing most prestigious and luxury car of the world from England is expected to pay the Entry tax to the State Government as they are plying the imported luxury car from abroad on the road within the State of Tamil Nadu. The roads across the State are laid from and out of the taxpayers' money. Thus, reminding the fundamental duty of the citizen is the Constitutional duty of the High Court," he said.
As the case was listed and came for hearing on Thursday, Justice SM Subramaniam refused to allow the actor to withdraw the plea, questioning why he had failed to pay the tax amount.
However, the counsel for Dhanush stated that the actor had already paid 50% of the tax of 30.33 lakh in 2015. “And is willing to pay the remaining amount along with withdrawing the plea seeking tax exemption,” added the counsel.
Responding to this, Justice Subramaniam opined that the luxury car bought must be driven on the road laid with the taxpayer’s money. “A common man is paying tax to everything they purchase including petrol. And in my experience so far, I have not had any person approach the court for tax exemption for the item purchased,” he said.
Justice Subramaniam asking Dhanush’s counsel about the Vexatious Litigation Act further commented that any person can file cases at the court. But in this case, the amount should have been paid off after the SC order rather than waiting. “We cannot have litigants file the case in the court and later change their minds and agree to pay the tax. We are overburdened by cases already,” said the Justice.
The Justice further said that the registry should not entertain cases with incomplete details such as in this case, litigant not mentioning his profession. The order noted that while filing the petition, Dhanush suppressed his identity by not revealing his profession.
It further said, “The petitioner may raise a ground that claiming exemption from payment of tax is his right. Undoubtedly, every citizen is entitled to claim his right, if he is of the opinion that his right is infringed. However, while dealing with the rights of the citizen, the Constitutional Courts are bound to remind the duties of the citizen under the Constitution to protect the Constitutional values and in the interest of the public at large.”
Quoting the Vexatious Litigation Act, Justice Subramaniam said, “Due to such cases taking up court’s time, several important cases are left pending.” Justice Subramaniam also stated that the order will be passed after the actor pays the remaining amount today and adjourned the hearing.
However, the judge during the verdict on Thursday afternoon directed the actor to pay the remaining tax amount within 48 hours. “The petitioner is directed to pay the balance arrears of Entry Tax of Rs.30,30,757.00, as demanded by the respondents, within a period of 48 hours,” he said. And orally observed that a set of guidelines will be laid down for the litigants to follow in the future.
Earlier, in July, the court imposed a fine of Rs 1 lakh to actor Vijay who also sought similar entry tax exemption for his Rolls Royce bought from the UK.