TMI Blog2010 (5) TMI 766X X X X Extracts X X X X X X X X Extracts X X X X ..... The present appeal is preferred by the appellant/assessee against the judgment and order dated November 7, 2008 passed by the First Bench of the Maharashtra Sales Tax Tribunal, Mumbai in VAT Appeal No. 1 of 2008. Facts The relevant facts leading to the present appeal can be summarized as under: The appellant is a private limited company and it has manufacturing unit at Vasai in Thane district. The appellant started manufacturing bicycles model matrix with an auxiliary electric motor having a 30 minutes backup power of less than 0.5 kilo watt, which is also called as E-bikeMatrix . Battery is provided along with pedal assistance. Battery is required to be charged if a person wants to use the electrical energy. No engine is fitted in the said E-bike . The appellant was of the view that the said product is covered by the word bicycle , as such, the same is exigible to tax at four per cent as it falls under Schedule C, entry 14 which reads thus: Bicycles, tricycles, cycle rickshaws and parts, components and accessories and tyres and tubes thereof. The appellant, therefore, filed an application under section 56(1)(e) of the Maharashtra Value Added Tax Act, 2002 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th specific wording. For example, entry No. C29(a) which applies to drugs excludes therefrom the mosquito repellents in any form . In similar way, there are several entries in the statute. Mr. Patkar further submitted that the Tribunal ought to have considered the common parlance evidence submitted by the appellant in its proper perspective. However, the Tribunal erred in holding that the evidence led by the appellant was of no assistance to hold that E-bike is a bicycle as commonly understood by the people at large. In support of his submission, Mr. Patkar relied on a certificate issued by the Automotive Research Association of India certifying that the e-bike matrix is not deemed to be a motor vehicle . He also relied on the notification dated September 16, 2005 issued by the Department of Road Transport and Highways by which the Central Motor Vehicles Rules, 1989 has been amended by the Central Motor Vehicles (Fifth Amendment) Rules, 2005 and the following clause has been inserted defining the battery operated vehicle : 'Battery operated vehicle' means a vehicle adopted for use upon road and powered exclusively by an electric motor whose traction energ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usually propelled by pedals and having handlebars for steering and a saddle like seat. (2) Also called safety bicycle, a similar vehicle, sometimes equipped with a motor in which the seat is mounted between tandem wheels of equal or nearly equal size, the rear wheel being connected to the pedals by a chain. In support of his submissions, Mr. Patkar relied on the judgment in the matter of Commissioner of Sales Tax, Maharashtra State, Bombay v. La Bela Products reported in [1985] 59 STC 221 wherein this court held that the entries in a Schedule to the Sales Tax Act must be interpreted in the light of current conditions. Mr. Patkar, thus, submitted that in the present case, the appellant is using the battery power in its product just for the convenience of the customers and the said product remains as bicycle in its original form though the battery is fixed in addition to the ancient form of bicycle. Mr. Patkar also relied on the judgment in the matter of State of Gujarat v. Bhagwati General Agency (Import) reported in [1991] 83 STC 347 wherein the Gujarat High Court held that where there is a specific entry in the description of which entry the product in question can more ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ord English-Marathi Dictionary in Marathi language is payata maroon chalvayache don chakanche wahan, duchaki, sayakal. He also relied on the dictionary meaning of bicycle (sayakal) in Marathi language as given in the dictionary, viz., Marathi Shabd Ratnakar by Late V.G. Apte that Sayakal: Dwichakra paadyan, paygadi . Mr. Sonpal further submitted that to know the popular meaning of bicycle , we cannot rely on the foreign dictionaries or its scientific names or meanings. In support of this submission, he relied on the judgment in the matter of Commissioner of Sales Tax v. Pali Ram Laxmi Narain reported in [1980] 46 STC 89 wherein the Allahabad High Court held that in respect of articles which are typical to Indian society it might not be safe to rely on the dictionary meaning given in Webster or Oxford. An item like tikuli may be unknown among the European society. To take guidance therefore from dictionaries or Encyclopaedia Britannica would be falling into an error. Mr. Sonpal further submitted that in interpreting the entries of taxing statute it is well known principle that the preference should be given to the common parlance meaning and that one defined in local dic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tubes used for cycle rickshaws are not ordinarily used for cycles. Further, the price of cycle rickshaw tyres and tubes is higher than the price of cycle tyres and tubes. The fact that the tyres and tubes used for cycle rickshaws can also be used by cyclists is not a ground for holding that cycle tyres and tubes are the same as cycle rickshaw tyres and tubes. Hence a dealer in tyres and tubes used for cycle rickshaws cannot claim the benefit of the lower rate of tax under G.O. Ms. No. 173 dated 6th February, 1964, issued under section 9 of the Andhra Pradesh General Sales Tax Act, 1957 which applies only to cycle tyres and tubes. In view of these authorities, Mr. Sonpal submitted that the appellant's product cannot be classified as bicycle for the purpose of taxing benefit of Schedule C, entry 14. The product in which the appellant is dealing runs with the help of energy produced through the electric battery. Under the Bombay Sales Tax Act, 1959 a battery is charged at 12.5 per cent for the purpose of sales tax. If the appellant's product is classified under the Scheduled C entry 14 then the battery which is used for the purpose of supplying energy will have to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en he has to pay the sales tax at 12.5 per cent and, therefore, intention of the Legislature is very clear that for the benefit of common person the sales tax is at four per cent on the bicycles. He also urged that the word bicycle has to be understood in the light of the word cycle rickshaw . According to him, bicycle and cycle rickshaw, these words take colour from each other. Considered on this backdrop, there is no substance in the appeal preferred by the appellant and the same deserves to be dismissed. Consideration We have heard both the sides at length. We have gone through the orders passed by the Sales Tax Commissioner as well as the Tribunal in this case. One thing is clear that if a vehicle runs with the help of any energy then the same cannot be termed as bicycle . For the purpose of charging sales tax we have to consider the plain meaning of bicycle in common parlance. In common parlance a bicycle is a pedal driven, human powered, single track vehicle, having two wheels attached to a frame, one behind the other. Even the price list placed on record by the appellant shows that the appellant's product price ranges from Rs. 4,500 to Rs. 10,000. In addition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ering the description of the appellant's product, it is clear that there is no specific entry in the Sales Tax Act in which the same can be taxed and therefore, it is necessary to hold that the appellant's product comes under the residuary entry. The Tribunal based on the elaborate well reasoned order has held that e-bike cannot be brought within the scope of Schedule C, entry 14. The Tribunal has pointed out that the essence of bicycle is self-powered whereas in the case of the appellant's product, the same runs with the help of battery. We find that the judgments passed by the Sales Tax Commissioner as well as the Tribunal have covered all the points. The Tribunal while deciding the present case, considered (a) concept of bicycle and dictionary meaning, (b) common parlance and e-bike, (c) salient features of matrix, (d) test report of Automotive Research Association of India, (e) intention of Legislature and (f) observations on functions of the appellant's product. The Tribunal in its judgment discussed all these points in detail based on the authorities of the apex court and the High Courts. In this case the learned counsel for the appellant produced before ..... X X X X Extracts X X X X X X X X Extracts X X X X
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