The Madras High Court on Monday reserved orders on a petition moved by actor Vijay, composer Harris Jayaraj and a hotel challenging the notice issued by the State Commercial Taxes Department slapping a penalty of Rs 30.28 lakh for the delay in paying entry tax for the car he had imported from the United States in 2005.
After hearing the pleas by Vijay and others seeking for quashing the demand notice, Justice R Suresh Kumar reserved the orders. Vijay’s counsel submitted that the penalty should be two per cent per month for delaying the payment of entry tax for the imported car.
“However, the Commercial Taxes Department had imposed 400 per cent higher penalty amount,” the petitioner submitted. The actor claimed that he delayed the payment because the situation was ambiguous in 2005 as to whether or not to pay the entry tax.