2011 (6) TMI 687 - HC - VAT and Sales Tax

Constitutional vires of charging section 3 of Andhra Pradesh Tax on Entry of Motor Vehicles into Local Areas Act, 1996 challenged

Held that:- Section 3 of the impugned Act does not suffer from any of the infirmities canvassed by the petitioners. The Act is constitutionally valid and within the competence of the State Legislature.

The question whether the vehicles purchased and imported by the petitioners are motor vehicles or not, in view of our conclusions on Part VIII supra, has to be decided at the stage of assessment by the competent officer. Therefore, we deem it appropriate to set aside the impugned assessment orders and remit them to the respective assessing officers. Keeping in view the principles laid down by the Supreme Court as summarized in this judgment, they shall now proceed to consider the contentions on this question alone, if necessary by obtaining an opinion from any Gazetted Officer of the Department of Transport. This exercise shall be completed within a period of eight weeks from the date of receipt of a copy of this Order, whereafter it shall be open to the petitioners to avail of the alternative remedy provided under the impugned Act read with the provisions of the VAT Act. We also give liberty to the petitioners to claim refund of tax over and above 12 per cent if it is paid by any of the petitioners. If any such claims are made, the respective assessing officers/Government authority shall dispose them of expeditiously and refund the amount of excess entry tax promptly.