Entry tax liability follows the person who causes vehicle entry, not mere ownership of the vehicles.

Under the Andhra Pradesh Tax on Entry of Motor Vehicles Into Local Areas Act, 1996, liability for entry tax arises from the charging provision and falls on the importer, meaning the person who actually brings, or causes the vehicle to be brought, into the local area for use or sale. A definition clause cannot by itself create tax liability. On the stated facts, the lessee took delivery of the dumpers and caused their entry into the State for its own use, so the lessee was the importer for levy purposes. The owner was not liable merely because it retained title, and the assessment and demand were unsustainable against it.

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Issues: Whether, for levy of entry tax under the Andhra Pradesh Tax on Entry of Motor Vehicles Into Local Areas Act, 1996, the petitioner as owner of the vehicles was liable as an importer when the lessee had taken delivery and caused the vehicles to enter the local area.

Analysis: The charging provision fastens tax on the entry of a motor vehicle into a local area and makes the tax payable by the importer. The definition of importer in the Act cannot be read in isolation, because in the scheme of section 3 the person who actually brings the vehicle into the local area, or causes it to be brought for use or sale, is the person on whom liability is fastened. A definition clause only identifies the class of persons covered by the statute; it does not by itself create liability in a taxing enactment. On the facts, the lessee had taken delivery of the dumpers and caused their entry into the State for its own use, so the lessee answered the description of the importer for the purpose of levy.

Conclusion: The petitioner was not liable to be assessed to entry tax merely because it remained the owner of the vehicles; the liability lay on the lessee who caused the entry of the vehicles.

Final Conclusion: The assessment and demand were unsustainable since the petitioner was not the person liable under the charging provision, and the writ petition succeeded.

Ratio Decidendi: In a taxing statute, liability must arise from the charging provision as applied to the person who actually brings or causes the entry of the goods or vehicle into the taxing area, and a definition clause cannot by itself fasten tax liability.

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