TMI Blog2015 (10) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... he State under the Motor Vehicles Act, 1988. The rate at which tax is levied on such motor vehicle is at the rate specified in the notification to be issued. Understanding of the Government is that tax is leviable under section 4B, on all earth movers, dippers and bulldozers and the like and not under section 3. The Revenue relies on the Notification No. FD 11 CET 2002(1) dated March 30, 2002 where the tax is levied under section 3 of the KST Act on machinery (all kinds and parts and accessories thereof but excluding agricultural machinery). If we read these two notifications, keeping side by side, the understanding of the State is earth movers, dumpers, dippers, bulldozers and the like and adopted for uses on road do not fall within the meaning of the word machinery (all kinds). - the contention of the Revenue that the motor vehicle is not registered, it cannot be treated as motor vehicle and has to be treated as machinery is without any substance. - Decided against Revenue. - CRP No. 256 of 2012 (Tax–KTEG) - - - Dated:- 10-7-2014 - KUMAR N. AND MANOHAR B. JJ. Smt S. Sujatha, Additional Government Advocate, for the petitioner. H. N. Sreenivasa Rao for the responden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... committed serious error in holding it to the contrary. She also submitted that even till this date, the assessee has not produced the certificate of registration as a motor vehicle and therefore, it is not open to them to contend that it is not a machinery and a motor vehicle. Therefore, she submits that the impugned order requires to be set aside. 4. Per contra, the learned counsel appearing for the assessee submits, the two decisions on which reliance is placed were rendered under the Karnataka Sales Tax Act, 1957 where the question which arose for consideration was, whether the vibratory compactor falls within entry 1(i)(a) or entry 1(iii)(a) of Part M of Second Schedule to the Karnataka Sales Tax Act, 1957 (for short, hereinafter referred to as the KST Act ) where both the entries related to machinery and the only difference is in the percentage of the tax liability. In the KTEG Act, the word motor vehicle has been defined and as the compactor satisfies the definition of the motor vehicle under the Act. The aforesaid judgments cannot be invoked to decide the dispute under the KTEG Act. In support of their contention, he also relied on the judgment of the apex court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... brating compactor as earth moving machinery and issuing notification to that effect would be binding on the Government because the notification has statutory force and now the respondent cannot argue contrary to the stand taken in the notification. In that view of the matter, the question of law is answered in favour of the assessee. Accordingly, the petitions are allowed. Similar view was also taken in the case of Ingersoll Rand (India) Ltd. v. Commissioner of Commercial Taxes [2013] 64 VST 362 (Karn). 10. From the aforesaid judgments, it is clear that in the Karnataka Sales Tax Act and in the Notifications referred to therein earth movers includes dumpers, dippers, bulldozers and the like . In the Notification, it has been classified as earth moving equipment . Therefore, it falls under entry 1(i)(a) Part M of the Second Schedule. Entry 1(iii)(a) dealt with machineries (all kinds) and parts and accessories thereof except those falling under others items of this entry and those specified elsewhere. Therefore, when entry 1(i)(a) specifically dealt with bulldozers, which is the popular name of the vibratory compactor coupled with the fact, a notification has been issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... II deals with levy of tax. Section 3 is the charging section. It provides that, the tax shall be levied on entry of any goods specified in the First Schedule into a local area for consumption, use or sale therein. Chapter IIA deals with levy of tax on motor vehicles exclusively. Section 4A is the definition section which defines what a motor vehicle is under section 4A(d). Section 4B is the charging section in so far as motor vehicles are concerned. It starts with a non obstante clause. It provides that, notwithstanding anything contained in section 3, there shall be levied and collected a tax on the purchase value of a motor vehicle on entry of which is effected into a local area for use or sale therein and which is liable for registration or assignment of a new registration mark in the State under the Motor Vehicles Act, 1988. The rate at which tax is levied on such motor vehicle is at the rate specified in the notification to be issued. Notification No. FD 03 CET 2006, Bangalore, dated March 31, 2006 issued under section 4B reads as under: Sl. No. Category of motor vehicles Rate of tax 9 Ea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d road rollers are suitable for use on roads. However, the contention put forth now is that they are intended for use in the enclosed premises. Merely because a motor vehicle is put to a specific use such as being confined to an enclose premises, will not render the same to be a different kind of vehicle. Hence, in our view, the High Court has correctly decided the matter and the impugned order does not call for any interference by us. However, the question whether any motor vehicle has entered into a local area to attract tax under the Entry Tax Act or any concession given under the local Sales Tax Act will have to be dealt with in the course of assessment arising under the Entry Tax Act. 20. From the aforesaid reasoning, it is clear, in order to attract tax under the provisions of section 4B of the K. T. E. G. Act, a motor vehicle must have entered into a local area for use or sale therein and consequently, it is liable for registration under the Motor Vehicles Act. If the vehicle is not registered under the Motor Vehicles Act that would not take away the vehicle outside the purview of section 4B. The question is whether it is a machinery or a motor vehicle under the Scheme o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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