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2023 (6) TMI 686 - HC - GSTValidity of action of the Respondents in demanding Tax 14 percent on the net invoice priceHyundai Venue 10 Turbo GDI DCT SX Motor Vehicle - seeking refund of Excess tax paid - HELD THAT - The life tax is to be collected from the vehicle owner upon the sale based on the net invoice price of the vehicle and not upon the ex-showroom price of the vehicle. The life tax can be levied only on the cost of the vehicle under the 6th schedule of the A.P. Motor Vehicles Taxation Act, 1963. It is also clear that the petitioner has purchased the vehicle in the year 2019 and had filed the present writ petition in the same year, which is admittedly within the period of limitation prescribed in the Limitation Act, 1963, viz., three years. This Court feels it appropriate to allow these writ petitions and the respondents are directed to refund a sum of Rs. 52,168/- to the petitioner in W.P. No. 12089 of 2019 and a sum of Rs. 1,16,000/- to the petitioner in W.P.No. 3049 of 2021, which were collected in excess of the life tax payable by both the petitioners under the Sixth Schedule to the Act on the invoice sale price, within a period of four (4) weeks from the date of receipt of a copy of this order. Petition allowed.
Issues Involved:
1. Legality of demanding tax on the net invoice price inclusive of GST and Cess. 2. Determination of the "cost of the vehicle" for tax purposes under the Andhra Pradesh Motor Vehicles Taxation Act, 1963. 3. Entitlement to refund of excess tax collected. Summary: Issue 1: Legality of Demanding Tax on Net Invoice Price Inclusive of GST and Cess The petitioner challenged the respondents' action of demanding tax based on the net invoice price, which included CGST, SGST, and Compensation Cess, arguing it was contrary to Section 3 Proviso Four of the Andhra Pradesh Motor Vehicles Taxation Act, 1963, and violative of Articles 14, 19, 265, and 300-A of the Constitution of India. The court reiterated that no tax shall be levied or collected except by the authority of law as per Article 265 & 300-A of the Constitution of India. Issue 2: Determination of "Cost of the Vehicle" for Tax PurposesThe court examined whether the "cost of the vehicle" should include GST and Cess or be limited to the base price of the vehicle. The respondents argued that the cost includes the total consideration paid, inclusive of taxes. The petitioner contended that the cost should exclude GST and Cess. The court referred to previous judgments, including Fathima Shirin Vs. Joint Regional Transport Officer, which clarified that the "purchase value" means the value shown in the original purchase invoice, excluding additional taxes. Issue 3: Entitlement to Refund of Excess Tax CollectedThe court noted that the composite State of Andhra Pradesh issued G.O.Ms. No. 240 authorizing the refund of excess tax collected, provided the claim is made within three years. The court found that the respondents collected excess tax by including GST and Cess in the vehicle's cost. Consequently, the court directed the respondents to refund INR 52,168/- to the petitioner in W.P. No. 12089 of 2019 and INR 1,16,000/- to the petitioner in W.P. No. 3049 of 2021 within four weeks. Conclusion:The court allowed the writ petitions, directing the respondents to refund the excess tax collected within four weeks, and clarified that the life tax should be levied only on the "cost of the vehicle" as defined under the Sixth Schedule to the Andhra Pradesh Motor Vehicles Taxation Act, 1963, excluding GST and Cess.
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