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TMI Blog2009 (7) TMI 1164X X X X Extracts X X X X X X X X Extracts X X X X ..... KALIFULLA J. An interesting question as regards the demand for payment of entry tax as contemplated in the Tamil Nadu Tax on Entry of Motor Vehicles Act, 1990 has come up for consideration at the instance of the appellant, who sought for a clarification from the Special ommissioner and Commissioner of Commercial Tax, who, in his clarification letter dated July 29, 1994 clarified that the entry tax has to be paid on the full value of the new vehicle being registered, irrespective of the fact whether the chassis was purchased in Tamil Nadu or elsewhere and it has already suffered sales tax, hence, that the appellant is liable to be assessed under the Act as bringing a full vehicle since it is a new commodity, liable for new registration under the Motor Vehicles Act. Shorn of unnecessary details, the required facts are that the appellant purchased a heavy vehicle chassis from M/s. Ashok Leyland Limited for which necessary tax under the provisions of the Tamil Nadu General Sales Tax Act, 1959 was levied and paid. The said chassis was sent by the appellant to Bombay for the purpose of mounting a special tank and after completing the body building, the chassis, along with the tanker, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he learned senior counsel for the appellant contended that the appellant has purchased the chassis in this State and had already suffered sales tax under the provisions of the Tamil Nadu General Sales Tax Act. Thereafter, the appellant took the vehicle to Bombay for mounting a tanker to be built on the chassis and after the tanker was mounted on the chassis and after paying necessary sales tax in the State of Bombay, brought back the tanker mounted on the chassis. Therefore, the only liability of the appellant can be in respect of the tanker alone and not on the chassis, inasmuch as, the chassis was not purchased and brought into the State of Tamil Nadu for the purpose of sale. The learned senior counsel, by referring to the various provisions contained in the Act as well as the notification dated March 12, 1983, contended that having regard to the specific reference to the body built on chassis of motor vehicles, which are meant for mounting of motor vehicles, having been separately mentioned in the said notification, for the purpose of prescribing the rate of tax, the body, which was built in another State and brought into the State of Tamil Nadu should be independently and ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctions 2(a), 2(b), 2(c), 2(d), 2(g), 2(i), 3(2) and 4(2) of the Act. The relevant part of the said provisions are as under: 2. Definitions. In this Act, unless the context otherwise requires, (a) 'accessories' means the car air-conditioner, music system and any other article fitted to a motor vehicle and which is not included in the original invoice; (b) 'appellate authority' means an appellate authority appointed under section 6; (c) 'assessing authority' means an assessing authority appointed under section 5; (d) 'entry of motor vehicle into a local area' with all its grammatical variations and cognate expressions, means entry of motor vehicle into a local area from any place outside the State for use or sale therein; . . . (g) 'importer' means a person who brings a motor vehicle into a local area from any place outside the State for use or sale therein; and who owns the vehicle at the time of its entry into the local area; . . . (i) 'motor vehicle' means a motor vehicle as defined in clause (28) of section 2 of the Motor Vehicles Act, 1988; Notes The definition of this term in section 2(28) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on the chassis, the value of which also to be determined for the purpose of arriving at the purchase value of motor vehicle. In other words, in order to assess the purchase value of the motor vehicle under section 2(k), the value of all accessories fitted to the vehicle, along with certain components are also to be taken into account. When we apply the above legal provision to the facts of this case, inasmuch as the motor vehicle of the appellant was the chassis owned by it, when it comes to the question of assessing its purchase value, as a motor vehicle entering into the local area of this State, with a tanker mounted on it, which was built in a State outside the State of Tamil Nadu, the said tanker falls squarely within the definitions of accessories and the value of such accessories along with the value of motor vehicle, as ascertained from the original invoice had to be taken into account. It is on the said value alone the entry tax liability can be assessed by the original authority. There is no dispute that the appellant is an importer as defined under section 2(g) of the Act and by virtue of section 3(2) of the Act, the appellant is liable to pay entry tax in the mann ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... endered, wherein, it was pointed out by the Division Bench that by virtue of the specific item mentioned in the Second Schedule of Andhra Pradesh General Sales Tax Act, the body of the motor vehicle would fall within the residuary clause of the component part of motor vehicle and thereby it could be independently treated as a motor vehicle. Here again, it will have to be stated that having regard to the specific provisions contained in the Act, as compared to the consideration which weighed with the Division Bench of the Andhra Pradesh High Court, which dealt with the issue in the light of the specific provisions contained in the Andhra Pradesh General Sales Tax Act, whatever stated in the said decision cannot be applied to the case on hand. Similarly, the decision of the learned single judge of the Punjab and Haryana High Court reported in Ambala Coach Builders v. State of Haryana [1977] 39 STC 44 also cannot be applied to this case, inasmuch as, the said decision came to be rendered by applying a particular entry in Schedule A of the Haryana General Sales Tax Act, which provision varies in very many degrees, as compared to the provisions referred to in the earlier part of o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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