Entry tax on chassis remained payable despite later body fitting; amendment did not alter existing liability.

Entry tax under the Maharashtra Tax on Entry of Motor Vehicles into Local Areas Act, 1987 was payable on a chassis brought into the State for use on public roads, because the statutory definition of motor vehicle included a chassis and subsequent fitting of a bus body did not alter its taxable character. The later insertion of the word "consumption" in section 3 did not create a new charging basis or change the existing liability, as the levy had already been attracted on the facts. The Tribunal's view was therefore held unsustainable, and the assessment and first appellate orders were restored.

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Issues: (i) Whether entry tax under the Maharashtra Tax on Entry of Motor Vehicles into Local Areas Act, 1987 was leviable on a chassis brought into the State and later fitted with a bus body. (ii) Whether the subsequent insertion of the word "consumption" in section 3 altered the taxability of such chassis for the period in dispute.

Issue (i): Whether entry tax under the Maharashtra Tax on Entry of Motor Vehicles into Local Areas Act, 1987 was leviable on a chassis brought into the State and later fitted with a bus body.

Analysis: Section 3 levies tax on the purchase value of a motor vehicle whose entry into a local area is effected for use, and the statutory definition of motor vehicle includes a chassis. Section 2(28) of the Motor Vehicles Act, 1988 also includes a chassis within the expression "motor vehicle". The fact that a body was subsequently mounted did not alter the character of the chassis or defeat the levy, since the chassis was actually driven on public roads and its entry into the State attracted tax.

Conclusion: The chassis was taxable, and the levy of entry tax was valid.

Issue (ii): Whether the subsequent insertion of the word "consumption" in section 3 altered the taxability of such chassis for the period in dispute.

Analysis: The later amendment did not create a new charging basis or displace the existing concept of "use". The levy had already been attracted on the facts of the case, and the amendment merely expanded the wording without changing the essential legal position that entry and use of the chassis on roads remained taxable.

Conclusion: The amendment did not assist the assessee and did not change the liability.

Final Conclusion: The Tribunal's view was held unsustainable, and the assessment and first appellate orders were restored, confirming liability to entry tax on the chassis.

Ratio Decidendi: Where the statutory definition of motor vehicle includes a chassis, entry tax is attracted on the chassis's entry into the State for use on public roads, and a later body-fitted composite vehicle does not negate the levy.

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