9911796707
TMI Blog1994 (11) TMI 341X X X X Extracts X X X X X X X X Extracts X X X X ..... is not same as for octroi. Nor it is by the same authority for the same purpose and for same period - Civil Appeal No. 5423 To 5427 of 1992, W.P. (Civil) No. 345 of 1993 - - - Dated:- 25-11-1994 - KULDIP SINGH, SAHAI R.M. AND HANSARIA B.L. JJ. S.B. Wad, H.N. Salve, A.K. Sen, S.K. Dholakia and G.L. Sanghi, Senior Advocates (Ashish Wad, Mrs. J.S. Wad, Ms. Meenakhsi Arora, R. Santhanam, C.S.S. Rao, K.J. John, Sushil Kr. Jain, A.S. Bhasme, T.C. Sharma, S.K. Agnihotri, Sakesh Kumar and Ashok K. Singh, Advocates, with them), for the appearing parties. -------------------------------------------------- The judgment of the Court was delivered by R.M. SAHAI, J. -These appeals are directed against the judgment and order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court did not find that the provision violated the constitutional guarantee under article 301 or there was any double taxation involved in it. In this Court the levy was challenged basically for two reasons-one, that the incidence of tax being on the purchase value of the motor vehicle it was in nature of purchase tax. Further local area having a connotation of its own and being understood as an area which was administered by a local authority, the tax on entry of the vehicle in the State as such was bad for being vague and contrary to the concept of the local area as understood. It was also urged that it being in addition to the tax levied and collected as octroi by a municipal corporation or other local authorities was violative of arti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e by the State. But the levy cannot be held to be bad because the Legislature intended to avoid any loss of sales tax in the State so long it is not found to be invalid either because of any constitutional or statutory violation. It is not the intention or propriety of a legislation but it is legality or illegality which renders it valid or invalid. Section 3, the charging section is extracted below: "3. Incidence of tax.-(1) Subject to the provisions of this Act and rules made thereunder, there shall be levied and collected a tax on the purchase value of a motor vehicle an entry of which is effected into a local area for use or sale therein and which is liable for registration in the State under the Motor Vehicles Act, 1939, at such ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... part pertaining to calculation and realisation of tax. The charge is on the entry of vehicle into a local area for use or sale and not on its purchase. The submission founded on the expression, "there shall be levied and collected a tax on the purchase value of a motor vehicle" proceeded thus on a misconception. Therefore, so long as the levy is on the entry of the vehicle into a local area for use or sale therein it cannot be said to be invalid merely because the measure of levy has been provided to be purchase value of the motor vehicle. Sri Wad, the learned Senior Counsel, vehemently urged that even assuming that the motor vehicles were brought into State for use or sale the tax could be levied only on the entry of vehicle into a local ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent according to the High Court, is not the entry of vehicle in any area of the State but in a local area. The High Court explained it by giving an illustration that if a motor vehicle was brought from Jabalpur (Madhya Pradesh) for being used or sold at Amravati (in Nagpur District of Maharashtra), which was the border area, taxable event was not the entry in Nagpur District but entry in area of Amravati Municipal Corporation. The levy, therefore, is not, as urged by the learned counsel for the appellant, on entry of vehicle in any part of the State but in any local area in the State. It cannot, therefore, be struck down on this ground [see State of Karnataka v. Hansa Corporation AIR 1981 SC 463; [1981] 1 SCR 823; [1980] 4 SCC 697]. Fee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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