1990 (7) TMI 353 - HC - VAT and Sales Tax

Summary

Issues:
Challenge to government order on tax liability for trailers under the Sales Tax Act.

Analysis:

The petitioner manufactures trailers falling under categories of "tractor trailers and jeep trailers" and contends that trailers designed for tractors should be taxed differently from those for motor vehicles. The Board of Revenue had earlier opined that trailers were taxable at 3%, but subsequent amendments broadened the scope. Post the 1980 amendment, trailers were included under item 138 of the Schedule, as per exhibit P4 by the Government.

The main issue is whether trailers fall under item 138 post the 1980 amendment. The Court noted that item 138 encompassed not only motor vehicles but also related items without motor propulsion. The entry was broad, covering trailers, motor bodies, and spare parts. The Court emphasized that despite potential differences in trailers' characteristics, all types of trailers were included under entry 138. The Government's interpretation in exhibit P4 was deemed correct within the statutory framework.

The Court rejected the petitioner's reliance on previous communications (exhibits P1 and P2) from the Board of Revenue and the Government, emphasizing the need to interpret entries independently. Through a plain reading of the statute and Schedule, the Court affirmed that trailers were covered under entry 138. Consequently, the Court upheld the Government's view in exhibit P4, even if doubts existed regarding the Government's authority under section 59-A.

The judgment concludes by dismissing the petition without costs. Additionally, a note mentions the striking down of section 59-A of the Kerala General Sales Tax Act, 1963, in a separate case.