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TMI Blog2001 (9) TMI 1083X X X X Extracts X X X X X X X X Extracts X X X X ..... laborators. The underlying idea of the policy was to save fuel cost because the import of fuel used to dry up the foreign exchange reserve of which the country had always felt shortage. It is further averred in the writ petition that the policy of liberalisation encouraged foreign collaborators from Japan to enter into the field in partnership with the Indian manufacturers to produce the diesel/ petrol vehicles with such a technology that they were fuel efficient. In so far as medium and light commercial vehicles were concerned the foreign collaboration was only with four manufacturers. Japan has taken the advance stride in the field of technology which created a competitive market in the country and also resulted in fuel conservation. However, the disadvantage of a vehicle manufactured in Japan or manufactured in India with Japanese collaboration used to be that it would cost more because of the maintenance and spare parts. As a result of this difficulty, instead of the import of spare parts the necessity of a local manufacturer was felt and the TATA came in the forefront in giving a tough competition to all the foreign collaborators with their Indian partners because the TATA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ordance with the prescribed procedure and they have achieved fuel consumption as noted below: 1. Engine No. Vehicle I Vehicle II 867038 866385 2. Chassis No. 357010908652 357010908662 3. Payload 5060 kg. 4. Type of tyre 7.50 x 15.14 Pl 5. Net tonne kilometre (i) (a) 49.903 at average speed of moved per litre of 40.10 kilometres per hour. diesel (b) 36.518 at an average speed of 60.00 kilometres per hour. (ii) (a) 43.608 at average speed of 40.00 kilometres per hour. (b) 35.520 at average speed of 59.85 kilometres per hour. 6. Specific fuel consumption (gramme per KW Hr) 238 222 3.. The test reports of the VRDE were considered by the Fuel Efficiency Committee and it has been decided that the vehicles tested satisfy the fuel efficiency norms prescribed in the aforesaid notification. 4.. Accordingly, this fuel efficiency certificate is issued for the model and make of the vehicle mentioned above having technical specifications and components similar to those of the vehicles tested by VRDE. 5.. This fuel efficiency certificate shall be valid for a period of one year with effect from the date of issue. Sd/-J.S. RANA Deputy Secretary to the Govt. of India (S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax: (1) That the vehicle should be fuel efficient light commercial vehicle and certified to be so by the Government of India; and (2) Cubic capacity of such a fuel efficient light commercial vehicle should be between 3200 to 3500 cc. Both these facts are relevant. The Government of Punjab, fixed the rate of tax of 0.5 per cent in respect of fuel efficient light vehicles having cubic capacity of 3200 to 3500 irrespective of location/ collaboration of the manufacturers and any manufacturer satisfying these two constituents, is eligible to be taxed at the abovementioned rates. Cubic capacity of a vehicle is a very relevant consideration and larger the cubic capacity of the engine the higher its horse power is. The State of Punjab in its reply has stated and otherwise also it is a matter of common knowledge that cubic capacity of an engine is a factor that makes for safer, more expeditious and economical and better performing vehicles. Thus, the vehicles which are both fuel efficient and have engine capacity of 3200 to 3500 cc constitute a clear and identifiable class based on relevant considerations. Larger the cubic capacity the higher is its horse power. For similar pay-lo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion amongst similarly situated parties. He submitted that the only object behind the issuance of notification dated March 30, 1988 is to encourage the fuel efficient vehicles and from that point of view, the effect of concession could not be denied to the vehicles sold by the appellant. The learned counsel claimed that any notification having features of encouraging fuel efficient vehicles and extending concession for that reason to such vehicles would be consistent with the requirement of article 14 of the Constitution. This feature is completely lacking in the notification dated March 30, 1988 because the notification seeks to defeat the basic object of fuel efficiency of vehicles by adding further specifications which are extraneous to the basic object. For this proposition, he has placed reliance on the judgments of the Supreme Court in Maneka Gandhi v. Union of India AIR 1978 SC 597, State of Madhya Pradesh v. Gwalior UGAR Co. Ltd. [1962] 2 SCR 618, Ajay Hasia v. Khalid Mujib Sehravardi AIR 1981 SC 487, Mrs. Meenakshi v. State of Karnataka AIR 1983 SC 1283, Indian Express Newspapers (Bombay) Pvt. Ltd. v. Union of India AIR 1986 SC 515, Arya Vaidya Pharmacy v. State of Tamil Na ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic capacity. On that basis the notification cannot survive the judicial scrutiny on the anvil of article 14 of the Constitution. 12.. On the question as to whether the State Government could select different rates of sales tax for the same category of commodities, the view of the Supreme Court in Arya Vaidya Pharmacy v. State of Tamil Nadu [1989] 73 STC 346; (1989) 2 SCC 285 may be referred. The observations of their Lordships in this regard read as under: "We think that the appeals are entitled to succeed. Item No. 95 mentions the rate of 7 per cent (now 8 per cent) as the tax to be levied at the point of first sale in the State. Item No. 135 provides a rate of 30 per cent in respect of arishtams and asavas at the point of first sale. We see no reason why arishtams and asavas should be treated differently from the general class of ayurvedic medicines covered by item No. 95. It is open to the Legislature, or the State Government if it is authorised in that behalf by the Legislature, to select different rates of tax for different commodities. But where the commodities belong to the same class or category, there must be a rational basis for discriminating between one commod ..... X X X X Extracts X X X X X X X X Extracts X X X X
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