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2019 (11) TMI 1068 - ALLAHABAD HIGH COURTLiability of tax - sale of motor bodies - component parts of motor vehicle under Notification No. KA.NI.-2- 306 dated 29.01.2001 or not - Whether on the facts and circumstances of the case, the Tribunal was correct to hold that the notification No. 306 dated 29.1.2001 issued under Section 3A of the Act is rightly applied by treating the construction of bus bodies as component part of the motor vehicle? HELD THAT:- It has been rightly pointed out by learned Senior Counsel that "bus-body" would necessarily have to be treated to be included in the phrase 'motor bodies' used under Notification No. ST-1921/X-905(1)-64 dated 01.05.1968 - the motor bodies or bodies of built or meant to be mounted on chassis of motor vehicles were always treated apart and different from component parts, accessories etc. of motor vehicles. They were made taxable at the specified rates, under the aforesaid notifications. However, that scheme came to be altered upon issuance of notification no. Notification No. ST-II-5784 dated 07.09.1981 as amended by notification no. TT- 2-3402 dated 01.10.1994. Since the notification dated 27.04.1987 only brought the activity of construction of bodies of motor vehicles and construction of trailers under the ambit of Section 3F of the Act for the purposes of taxation without affecting the rate of tax on the goods that may be deemed to have been sold in execution of such works contract, it remains to be examined, the rate of tax that would be leviable on such goods - Even though, it may have been argued by the revenue that in 1987, the commodity bus bodies would have been taxable as motor vehicles by virtue of earlier Notification No. ST-1921 dated 01.05.1968 issued under Section 3A of the Act, however, the material difference in the language of the subsequent notification issued under Section 3A being Notification No. TT-2-3402 dated 01.10.1994 and the subsequent notifications, as have been noted above, would have to be borne in mind. In that regard, the words 'motor bodies' or 'bodies of vehicles' are found to be missing in the taxing notification issued on 01.10.1994 and subsequently. The reference to Entry 18 of Notification No. 306 dated 29.01.2001 is found to be irrelevant, inasmuch as, by that notification, only the words 'and harvester combines' had been added but there was no amendment to subject motor bodies or bodies of motor vehicles to tax as motor vehicles. The question is answered in the negative, i.e. in favour of the assessee and against the revenue.
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