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2013 (3) TMI 159 - BOMBAY HIGH COURTIncidence of Tax - assessee claimed exemption on chassis - chassis purchased by assessee No.1 in the State of Madhya Pradesh at Raipur and the same was brought in the State of Maharashtra effecting its entry, the bus body was mounted on the said chassis which was entered into the State of Maharashtra and the vehicle was registered with the registration authorities of State of Maharashtra bearing registration No. MH31M5270 - Held that:- The chassis was bought at Raipur and effected its entry in the State of Maharashtra for causing it to be driven on public road and as such the Assessment Officer has rightly levied the tax on the purchase value of the chassis. There is also considerable merit in her submission that the Tribunal has totally lost sight of the fact that the term “motor vehicle” refers to and defines in the Act namely the Maharashtra Tax on Entry of Motor Vehicles into Local Areas Act, 1987 as well as the Motor Vehicles Act, 1988 defines “motor vehicle” inclusive of the term “chassis”. Unable to accept the submission of the respondent No.1 that as the chassis was consumed by mounting a bus body on it and resulting “bus” being a different product, respondent No.1 was not entitled to pay any taxes. As decided in Automotive Manufacturers (P) Ltd. etc. .v. Government of Andhra Pradesh and others etc. (1971 (11) TMI 145 - SUPREME COURT) merely because bodies were going to be attached by the ultimate purchasers, it cannot be said that the running of the chassis on the roads of Andhra Pradesh would attract exemption. The Apex Court also turned down the submission of seeking exemption on the ground that the chassis would be meaningless unless body is attached to it. Taking into consideration the observations of the Hon'ble Apex Court, dealing with the word “use” as referred to its meaning in Oxford Dictionary as well as in Webster's Comprehensive Dictionary, the argument advanced by respondent No.1 in support of his submission that as the chassis was consumed in mounting of the bus body on it and as such this different product is not entitled for any tax, is unacceptable. Conjoint reading of section 2(1)(i) and section 3(1) of the Act makes it abundantly clear that the “purchase value of motor vehicle” means not of the value of only the chassis but of the entire composite vehicle (chassis having a body built thereon) entering the State of Maharashtra - the Circular dated 05.10.2001 refers to the motor vehicle and the definition refers to it in the Circular is inclusive of chassis of motor vehicle. No hesitation to say that the Tribunal failed to appreciate the facts of the matter in proper perspective - the order passed by the first appellate authority are confirmed - against assessee.
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