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TMI Blog2023 (6) TMI 686X X X X Extracts X X X X X X X X Extracts X X X X ..... es 14, 19, 265 and 300-A of the Constitution of India and consequently to direct the Respondents to forthwith refund the excess Tax of INR 52,168/- (Rupees fifty two thousand one hundred and sixty eight only) collected from the Petitioner illegally..." W.P.No. 3049 of 2021:- "...to issue Writ order or direction more particularly in the nature of Mandamus declaring the action of the Respondents in collecting life tax 14 percent coming to INR 4,41,000/- (Rupees four lakh forty one thousand only) on the IGST of INR 5,95,946/- Rupees five lakhs ninety five thousand nine hundred and forty six only and Compensation Cess of INR 4,25,676/- (Rupees four lakhs twenty five thousand six hundred and seventy six only) along with the cost of the BMW X1 LCI Model Motor Vehicle bearing Registration No. AP39 GQ 5679 with Chassis No. WBA77ADO7LEP 29420 Engine No. 0126Y256 instead of the cost of the motor vehicle of INR 21,28,379/- alone contrary to Section 32 Fourth Provisio of the Andhra Pradesh Motor Vehicles Taxation Act 1963 R/w Sixth Schedule hereinafter called the Act and the Andhra Pradesh Motor Vehicles Taxation Rules, 1963 hereinafter called the Rules as illegal, arbitrary, without juri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hile composite High Court for the States of Andhra Pradesh and Telangana as follows: "The ex-showroom price of the vehicle purchased by the writ petitioner is Rs. 55,99,000. The sale invoice was issued to him by the dealer for Rs. 52,90,000/-, after giving a discount of Rs. 3,00,000/- It is stated that the authorities have collected excess amount of Rs. 51,000/- from the writ petitioner towards life tax. As per the circular memo dated 30-08-2008, life tax is to be collected upon the sale based on the net invoice price and not on the ex-showroom price. As rightly observed by the learned single Judge, life tax can be levied only on the 'cost of the vehicle' under Sixth Schedule to the A.P. Motor Vehicles Taxation Act, 1963, unless the contrary is carved out by way of notification in that behalf. In the absence of any notification in that behalf, life tax can be levied only on the 'cost of the vehicle. In the general parlance, the 'cost of the vehicle' is the amount actually paid by the purchaser to the dealer, and it is the 'consideration' for transfer of vehicle from the dealer to the purchaser. The learned single Judge relied on the judgments of the Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n purchase of the motor vehicle from the dealer. This consideration includes Central GST, State and cess also which comprises the total amount paid by the purchaser. As such, the cost of the vehicle cannot be seen as excluding some part of the amount (consideration) paid by the purchaser. Hence, life tax is to be collected on the total invoice cost of the vehicle. In this case, the total invoice price is Rs. 31,50,000/- which is the consideration paid by the petitioner as admitted by him. 10. The petitioner has filed reply affidavit to the counter stating that the cost of the new vehicle means that how much amount to be paid to the dealer by the purchaser including CGST & SGST but not price of the vehicle mentioned in the invoice and that in the Memo. No. 49840/D2/93 dated 07.01.1994 issued by the second respondent. The cost of the new vehicle means total cost of the vehicle inclusive of taxes and not price of the vehicle noted therein are all false and hence denied. This High Court in W.P. NO. 5286 of 2018 has held that the words "cost of the vehicle" means the amount actually paid by the petitioner to the dealer. It is the consideration for transfer of vehicle from the dealer. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t "purchase value" means the value of the vehicle as shown in the original purchase invoice. When the legislature uses the tool, "means", it means what is said and nothing beyond. When a statute says that a word or phrase shall "mean" certain things or acts, the definition is a hard-and-fast one, and no other meaning can be assigned to the term so defined. A definition is an explicit statement of the full connotation of a term. Where an interpretation clause defines a word to mean a particular thing, that definition is explanatory and prima facie restrictive- see Punjab Land Deyl and Reclamation Corpn. Ltd. V. Presiding Officer, Labour Court (1990) 3 SCC 682), Central Inland Water Transport Corporation Ltd. v. Brojo Nath Ganguly (1986) 3 SCC 156: AIR 1986 SC 1671), Gough v. Gough (1891) 2 QB 6650 P. Kasilingam v. P.S.G. College of Technology (1995 Supp (2) SCC 348: AIR 1995 SC 1395). Applying this well settled principle of law, the definition "purchase value" in S. 2(e) of the M.V.T Act cannot be anything beyond the value of the vehicle is shown in the original purchase invoice. 7. If the purchase value of any vehicle is not ascertainable on account of non-availability of the invo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icle". 15. The learned counsel for the petitioners has relied upon a judgment reported in the High Court of Telangana between Kishore Rai Sohni Vs. The State of Telangana, wherein, under similar circumstances, the Court has held as follows: "Accordingly, the Writ Petition is allowed and respondents are directed to refund a sum of Rs. 51,000/- collected from the petitioner towards life tax in excess of the life tax payable by the petitioner under the Sixth Schedule to the Act on the invoice sale price, to the petitioner within four (04) weeks from today. No costs." 16. The respondents have filed a counter stating that the life tax on Motor cars is levied on the cost of the vehicle as per Sixth Schedule to the Fourth proviso to sub section (2) of Section 3 of the Andhra Pradesh Motor Vehicles Taxation Act, 1963. The cost of the vehicle is the actual consideration paid by the purchaser on purchase of the motor vehicle from the dealer. This consideration includes IGST, Compensation cess under GST also, which comprises the total amount paid by the purchaser. As such, the cost of the vehicle cannot be seen as excluding some part of the amount (consideration) paid by the purchaser. He ..... X X X X Extracts X X X X X X X X Extracts X X X X
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