2016 (7) TMI 35 - HC - VAT and Sales Tax

Levy of entry tax on goods vehicles - The contention raised by the petitioner is that the vehicle in question is not a motor vehicle and it operates on chains and it cannot ply in the road. - Held that - the petitioner has purchased JS140, HD dipper, 0.63 bkt with Preclar. The photographs of the vehicle in question has also been produced before this Court which shows that the vehicle operates on chains and does not operate on inflated tyres. - Demand set aside - Decided in favor of petitioner.

Summary

Issues:
Challenge to order for levy of entry tax on goods vehicles based on classification as a motor vehicle.

Analysis:

Issue 1: Challenge to order for levy of entry tax on goods vehicles
- The petitioner sought a writ of certiorari to quash the order for levy of entry tax on goods vehicles.
- The petitioner argued that the vehicle in question, operating on chains and not on inflated tires, cannot ply on roads.
- Reference was made to a previous case where a similar issue was considered by the Hon'ble First Bench of the Court.
- The respondent contended that the petitioner must file objections before the authority and challenging the notice does not arise.
- The law on the issue had been previously decided by the Hon'ble First Bench in a case involving sea protection works machinery.
- The Hon'ble First Bench deliberated on whether vehicles with chain plates, like caterpillar vehicles or military tanks, fall under the definition of a motor vehicle.
- Citing Supreme Court decisions, the Hon'ble First Bench concluded that vehicles operating on chain plates are not considered motor vehicles for entry tax purposes.
- The petitioner provided evidence, including an invoice and photographs, showing that the vehicle in question operates on chains and not on inflated tires.
- The Court applied the precedent set by the Hon'ble First Bench in the previous case and quashed the impugned order for levy of entry tax.
- The writ petition was allowed, and the impugned order was quashed, with no costs awarded.

This judgment dealt with the challenge to an order for the levy of entry tax on goods vehicles based on the classification of the vehicle as a motor vehicle. The Court examined whether a vehicle operating on chains, rather than inflated tires, could be considered a motor vehicle for the purpose of entry tax. By referring to previous decisions and analyzing the characteristics of the vehicle in question, the Court concluded that vehicles with chain plates, such as caterpillar vehicles or military tanks, do not qualify as motor vehicles under the relevant laws. The Court relied on evidence provided by the petitioner, including an invoice and photographs, to support its decision to quash the order for levy of entry tax. Ultimately, the Court allowed the writ petition, quashed the impugned order, and closed the connected miscellaneous petitions without awarding costs.