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TMI Blog2023 (6) TMI 686X X X X Extracts X X X X X X X X Extracts X X X X ..... ixth 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. - WRIT PETITION Nos.12089 of 2019 and 3049 of 2021 - - - Dated:- 13-6-2023 - HONOURABLE SMT. JUSTICE V.SUJATHA For the Petitioner : M R K Chakravarthy For the Respondent GP For Transport AP COMMON ORDER These Writ Petitions are filed under Article 226 of the Constitution of India for the following relief: W.P.No. 12089 of 2019:- to issue Writ order or direction more particularly in the nature of Mandamus declaring the action of the Respondents in demanding Tax 14 percent on the net invoice price of INR 11,10,500/- Invoice No. V19VSI263 dated 12/06/2019 for the Petitioners Hyundai Venue 10 Turbo GDI DCT SX Motor Vehicle bearing No AP 39 BK 9573 with Chassis No. MALFC81 AVKMO 18346 Engine No G3LCKM804163 instead of on the cost of the motor vehicle of INR 8,60,853/- 12 contrary to Section 3 Proviso Four of the Andhra Pradesh Motor Vehicles Taxation Act, 1963 R/w Schedule Six and Andhra Pradesh Motor Vehicles Taxation Rules 1963 as illegal, arbitrary, without jurisdiction and violative of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /w Schedule VI and Andhra Pradesh Motor Vehicles Taxation Rules, 1963 on the price shown in the invoice dated 12.06.2019, which is inclusive of Central GST, State GST Cess for the reasons best known to the respondents without there being any power much less authority is collecting tax on the basis of net invoice price which is inclusive of CGST, SGST Compensation Cess as well. 4. The motor vehicle purchased by the petitioner falls under fourth proviso to Section 3(2) of the Act and the Tax leviable under Schedule VI of the Act is 12% on the cost of the Motor Vehicle which is INR 8,60,853/- as the Unlanden weight is 1168 kgs. 5. Article 265 300-A of the Constitution of India provides that no tax shall be levied or collected except by the authority of law and further the petitioner cannot be deprived of any property save by authority of law. Therefore, no tax can be levied or collected/ demanded by the respondent Registering Authorities, unless they are explicitly and clearly authorised under the Act. 6. The composite High Court in WA.No. 805 of 2018 by an order dated 29.01.2019 has confirmed the common order dated 02.05.2018 in W.P. Nos. 28612 of 2018 and 451 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid in excess, or by mistake, provided the claim is made within a period of limitation of three years. The action of the respondents in not refunding the excess tax of INR 52,168/- collected from the petitioner is illegal and arbitrary. Hence, the present writ petition. 8. A counter affidavit has been filed by the respondents stating that the life tax on motor cars is levied on the cost of the vehicle as per Sixth Schedule to the Fourth proviso to sub section (2) of the Andhra Pradesh Motor Vehicle Taxation Act, 1963, which reads as follows:- 3. Levy of tax on Motor Vehicles. (1) .......... (2) The notification issued under sub-section (1) shall specify the class of motor vehicles on which, the rates for the periods at which, and the date from which, the tax shall be levied : Provided that the rates of tax shall not exceed the maximum specified in Column (2) of the First Schedule in respect of the classes of motor vehicles fitted with pneumatic tyres specified in the corresponding entry in Column (1) thereof; and one and a half times the said maximum in respect of such classes of motor vehicles as are fitted with non-pneumatic tyres. 9. The cost of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e purchaser is liable to pay the tax @ 14% as per VI schedule of the Andhra Pradesh Motor Vehicle Taxation Act, 1963. Whereas if the cost of the vehicle is below Rs. 10.00 lakhs, the purchaser is liable to pay the tax 12% as per the VI schedule of the Andhra Pradesh Motor Vehicle Taxation Act, 1963. In the instant case, according to the invoice issued by the dealer of the car, the petitioner has paid an amount of Rs. 11,10,500/- including charges under CGST and SGST. As the tax was levied @ 14% on the cost of the vehicle. Therefore, there is no illegality in collecting the tax as alleged by the writ petitioner. 13. In support of his contention, learned counsel for the petitioner has relied upon the judgment in the case of Fathima Shirin Vs. Joint Regional Transport Officer (2013) 3 KLT 945 and the relevant portion of the order is extracted below:- 6. Section 3(1) of the M.V.T Act provides for levy of tax on every motor vehicle falling within that provision, at the rates specified for such vehicle in the schedule. No. A Annexure-1 of that Schedule provides for, among other things, payment of one time tax for new motor vehicles. The rate of one time tax is fixed at a percen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e determined applying the rate applicable in terms of that Act, on Rs. 8,81,004.41 which is the purchase value of that vehicle. It is so declared. The competent authority among the respondents shall accept the appellant s application for registration of the vehicle in terms of this declaration and grant registration, if the application is otherwise in order. Any demand contrary to this declaration shall stand quashed hereby. Writ Appeal is ordered accordingly, vacating the impugned judgement. 14. The case of Fathima Shirin Vs. Joint Regional Transport Officer has been reaffirmed in Nagendra Mani. N. Vs. State of Kerala reported in 2015 SCC OnLine Ker 2117:(2015) 3 KLT (SN 160) 126. Also, in R.N. Hemendranath Reddy Vs. State of Telangana , the Court observed that life tax to be collected from a vehicle owner produced for registration upon the sale based on the net invoice price of the vehicle and not upon the ex-showroom price of the vehicle. Thereby, the Court upheld that life tax can be levied only on the cost of the vehicle under Sixth Schedule to the A.P. Motor Vehicles Taxation Act, 1963, unless the contrary is carved out by way of notification in that behalf. In the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 07.01.1994 as The cost of a new vehicle means the total cost of the vehicle inclusive of all taxes as per the invoice and not price of the vehicle noted therein . So, it reveals that the cost of the vehicle is INR 31,50,000/-. 18. The combined State of Andhra Pradesh issued G.O. Ms. no. 240, Home (Tr-II), dated 28.12.1963 as amended by Government, Home (Tr.II) Department Memo No. 382/66-3, dated 25.03.1966, reads as follows: The Government after careful consideration agree to the above proposal of the Secretary State Transport Authority and accordingly, authorise the (Licensing Officers including the Addl. Regional Transport Officers) to sanction refund of Motor Vehicles tax paid in excess or by mistake provided the claim is made within the period of limitation prescribed in the Limitation Act, 1963, viz., three years in cases where payment is made under protest (Article 113 of Schedule to the Limitation Act, 1963) and three years where payment is made by mistake 19. On a perusal of the judgment relied upon by the counsel for the petitioner, it is clear that the life tax is to be collected from the vehicle owner upon the sale based on the net invoice price of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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