TaxTMI 
TaxTMI 
2004 (9) TMI 615
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....l, arbitrary and ultra vires the provisions of article 285(1) of the Constitution. (ii) Declare the proviso to section 4(3) of the Andhra Pradesh Tax on Entry of Motor Vehicles into Local Areas Act, 1996, in so far as it excluded the payment by way of Central sales tax as void, illegal, arbitrary apart from violating the principles of natural justice and fair play. (iii) Declare section 20 of the Andhra Pradesh Tax on Entry of Motor Vehicles into Local Areas Act, 1996 as void and unenforceable being repugnant to section 207 of the Motor Vehicles Act, 1988 having regard to article 254 of the Constitution. (iv) Declare the Andhra Pradesh Tax on Entry of Motor Vehicles into Local Areas Act, 1996 as void and unenforceable as a whole fo....
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....n provided under section 3 of the Act itself, which is the charging section. The proviso reads, "provided further that no tax shall be levied and collected in respect of any motor vehicle which is owned by Central Government and is used exclusively for the purposes relating to the Defence of India." It is true that the vehicles are used by the Government of India, but there is nothing on record to show that the vehicles are exclusively used for the purposes relating to the Defence of India. Mr. Murthy submits that the Department of Atomic Energy is also engaged in the defence of India and as such it should be held that the vehicles are being used exclusively for the purposes relating to defence of India. Defence of India relates mainly t....
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.... article 285. Article 285 gives total exemption of property of the Union from State taxation, but in such a case, it has to be seen as to whether the tax is on the property of the Union or any other event. Section 3 of the Act lays down: "3. Levy of tax.-(1) Subject to the provisions of this Act, there shall be levied and collected tax on the entry of any motor vehicle into any local area for use or sale therein which is liable for registration in the State under the Motor Vehicles Act, 1988. The tax levied shall be at such rate or rates as may be fixed by the Government, by notification, on the purchase value of the motor vehicle but not exceeding the rates specified for motor vehicles in the First Schedule to the General Sales Tax Act,....
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....e taxable event in the case of duties of excise is the manufacture of goods and the duty is not directly on the goods but on the manufacture thereof. We may in this connection contrast sales tax which is also imposed with reference to goods sold, where the taxable event is the act of sale. Therefore though both excise duty and sales tax are levied with reference to goods, the two are very different imposts; in one case the imposition is on the act of manufacture or production while in the other it is on the act of sale. In neither case therefore can it be said that the excise duty or sales tax is a tax directly on the goods for in that event they will really become the same tax. It would thus appear that duties of excise partake of the natu....