9911796707
TMI Blog2006 (3) TMI 706X X X X Extracts X X X X X X X X Extracts X X X X ..... ree vehicles are motor vehicles of Tata make, though equipped with machinery and fittings for tree trimming and repair of electric line at high altitude and for fire fighting and therefore, entry tax was payable. Having failed to file the returns and pay the tax, the petitioner was assessable for tax and penalty, is the case of the respondents. In order to appreciate various contentions, the nature and function of the various items have to be gone into. The petitioner has produced photographs of all the three items marked as exhibits P2, P3 and P4 and it is clear from the same that all the three are essentially trucks of Tata make fitted with various equipment. The first item called tower wagon and treetrimming vehicle is nothing but a t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... factory or in any other enclosed premises. It is seen from the photographs produced that the vehicles are ordinary Tata trucks fitted with the equipments referred above. Fire tenders are normally operated on road and are nothing but trucks fitted with fire fighting equipment with storage facility, whether it is chemical or water. The size and dimensions of the fire fighting equipment do not make it anyway abnormal affecting its use on roads. The third item, namely, tower wagon and tree-trimming vehicle also can be used even on the road because even though the attachment to it is high, it can be folded and the height reduced within reasonable limits for use on road. It is to be noted that the Motor Vehicles Taxation Act provides specific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that the petitioner is a Central Government undertaking and so much so, tax cannot be demanded in respect of the motor vehicle as provided under second proviso to section 3(1) of the Entry Tax Act. I find the exemption provided under the above referred proviso is only for the property of Central Government and for items used exclusively for the purpose relating to defence of India. The petitioner is only a public sector undertaking and the benefit of exemption provided under the proviso does not extend to property of public sector undertakings. The petitioner is only engaged in generation and distribution of electricity from thermal power and it is not engaged in any operations relating to defence of India. Therefore, the claim of exempti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent machinery designed for specific purpose which have nothing to do with normal use of the vehicle. In fact, those machinery and equipment are independently usable and those are attached to vehicles only to make it mobile and the purpose of the vehicle is essentially to transport the equipment for making the service mobile and to reach it at the required site. Since the attachments are not accessories, there is no scope for adding the value of machinery and equipments to the purchase value for the purpose of assessment and demand of entry tax. On the whole, I feel the value of everything except the chassis and the cabin should be deleted from the invoice produced for arriving at the purchase value for assessment. The proviso to section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny public authority to render assistance even outside the factory premises. In the circumstances, the vehicles are liable to be registered and petitioner is directed to take registration under the Motor Vehicles Act for the two fire tenders. Since no coercive steps are taken by the Motor Vehicles Department for registration, the Regional Transport Officer concerned is directed to register the vehicles without levying any penal charges. In view of the bona fide dispute and since petitioner was not called upon to register even the two fire tenders under the Motor Vehicles Act, the levy of penalty under the Entry Tax Act is not sustainable. In the circumstances, exhibit P5 is quashed. However, first respondent is directed to issue fresh demand ..... X X X X Extracts X X X X X X X X Extracts X X X X
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