2014 (9) TMI 302 - HC - VAT and Sales Tax

Liability of entry tax - Taxability of dumper - Whether the Dumper can be said to be Motor Vehicle and can be subjected to entry tax under the Act, more particularly, treating the same as specified goods under entry at Serial No. 1 of Part I of the Schedule to the Act - Held that - Motor Vehicles including Motor cars, Motor taxcabs, Motoettes, Motor omnibuses, Motor vans, Motor lorries, Motor cycles, Motorcycle combinations, Motor scooters, Mopeds is subjected to entry tax under the Act as observed hereinabove and as per the decision of the Division Bench of this Court in the case of Reliance Industries Ltd. (2011 (7) TMI 1043 - GUJARAT HIGH COURT) and can be said to be Motor Vehicle. Merely because Dumper is not specifically mentioned in the entry at Serial No. 1 of Part I of the Schedule to the Act but if it is found to be Motor Vehicle, in that case, it cannot be said that the Dumper is not subjected to entry tax. Considering the fact that Dumper can be said to be Motor Vehicle, the same is subjected to entry tax under the Act. Under the circumstances, when Dumper , can be said to be Motor Vehicle it will be specified goods covered under entry at Serial No. 1 of Part I of the Schedule to the Act and, therefore, the same is subjected to payment of entry tax under the aforesaid Act. Under the circumstances, the impugned orders passed by the learned tribunal holding contrary cannot be sustained and the same deserves to be quashed and set aside - Decided in favor of Revenue.

Summary

Issues:
Whether a 'Dumper' can be considered a 'Motor Vehicle' and subjected to entry tax under the Act.

Analysis:
The petitioner, State of Gujarat, sought to quash an order by the Gujarat Value Added Tax Tribunal that allowed appeals regarding the classification of a 'Dumper' under the Gujarat Entry Tax Act, 2001. The tribunal held that the 'Dumper' did not fall under specified goods for entry tax, directing a refund of the tax. The main issue was whether the 'Dumper' could be classified as a 'Motor Vehicle' under the Act.

The petitioner argued, based on a previous court decision, that the 'Dumper' should be considered a Motor Vehicle and thus subject to entry tax. The respondent countered that the specific mention of 'Dumper' was absent in the relevant entry, suggesting alternative classifications under different acts.

The court deliberated on whether a 'Dumper' could be deemed a Motor Vehicle. Referring to the Motor Vehicles Act and the relevant entry in the Act, the court determined that any vehicle falling under the broad category of Motor Vehicles, including various types like cars, vans, and cycles, should be subject to entry tax. Despite 'Dumper' not being explicitly listed, if it met the criteria of a Motor Vehicle, it should be taxed accordingly.

Consequently, the court held that since a 'Dumper' could be classified as a Motor Vehicle, it should be considered 'specified goods' under the Act and subject to entry tax. The tribunal's decision was overturned, and the orders quashed, allowing the Special Civil Application in favor of the petitioner.