LexBOSE ABRAHAM ETC. versus STATE OF KERALA AND ANR.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
A B BOSE ABRAHAM ETC. v. STATE OF KERALA AND ANR. FEBRUARY I, 2001 [S. RAJENDRA BABU AND Y.K. SABHARWAL, JJ.] Kera/a Tax on Entry of Motor Vehicles into local Areas Act. Section 20) and 3-Constitutiona/ validity of Section 3 challenged in writ petitions- Dismissed by the High Court-On appeal, Held: The incidence of taxation C in the context of Entry 52 of list II of the Seventh Schedule to the Constitution is entry of goods into a local area for sale, use or consumption therein-In order to attract tax under the provision of Section 3 of the Act, a motor vehicle must have entered into a local area for use or sale therein being liable for registration under the Motor Vehicles Act-Mere fact of a Motor D Vehicle being put to a specific use such as confined to an enclosed premises, will not render the same to be a different kind of vehicle-Motor Vehicles Act, 1988, Section 2(28). Constitution of India, 1950 : Schedule VII list II Entries 52 and 57- Va/idity of Section 3 of Kera/a Tax on En11y of Motor Vehicles into local E Areas Act. F G According to Section 3 of the Kera la Tax on Entry of Motor Vehicles into Local Areas Act, tax was to be levied and collected on the entry of any motor vehicle into any local area for use or sale therein which was liable for registration in the State under the Motor Vehicles Act, 1988 at rates fixed by the Government by notification. A 'motor vehicle' has also been defined under Section 2 (28) of the said Entry Tax Act. Challenge to exigibility of excavators and road rollers to entry tax under the said Act was upheld by the High Court. Appeal before a Division Bench of the High Court was also dismissed. Hence these appeals. The appellants contended that the excavators and road rollers were not motor vehicles to fall under the definition of 'motor vehicle' under section 2(j) of the said Entry Tax Act. It was also contented that even if the excavators and road rollers are construed to be motor vehicles for the purpose of the Motor Vehicles Act in order to regulate the usage thereof, still it could not H 808 BOSE ABRAHAM v.'STATE 809 be termed as a motor vehicle in the sense it is adaptable to be used on road A inasmuch as excavators are used in an enclosed area while road rollers are used for the purpose of making roads and not as a vehicle on road. It was further contended that the incidence of payment of entry tax before the registration is not proper. Dismissing the appeals, the Court HELD : I. Under Entry 57 of List II of the Seventh Schedule to the Constitution, what is required to be considered is a tax on vehicle which is suitable for use on roads. But the incidence of taxation in the context of Entry B 52 of List II of the Seventh Schedule to the Constitution is entry of goods into C a local area for sale, use or consumption therein.1811-G-H; 812-AI Boiani Ores ltd. v. State of Orissa, 119741 2 SCC 777; Mis.Central Coal Fields ltd. v. State ofOrissa & Ors., 11992) Suppl. 3 SCC 133; Goodyear India ltd. v. Union of India & Ors., 11997) 5 SCC 752 and Diamond Sugar Mills Ltd. & Anr. v. The State of Uttar Pradesh & Anr., 11961) 3 SCR 242, D referred to. 2. Section 2 (j) of the Entry Tax Act defines 'motor vehicle' to mean a motor vehicle as defined in Section 2(28) of the Motor Vehicles Act. Subject 4- to the provisions of the Entry Tax Act, Section 3 thereof enables the levy and collection of tax on the entry of any motor vehicle into local area for use or E sale therein which is liable for registration in the State under the Motor Vehicles Act at such rate as may be fixed by the Government. Therefore, in order to attract tax under the provision of Section 3 of the Act, a motor vehicle must have entered into a local area for use or sale therein and secondly which is liable for registration under the Motor Vehicles Act. 1812-B-DI F 3. Excavators and road rollers are motor vehicles for the purpose of the Motor Vehicles Act and they are registered under that Act. The High Court has noticed the admission of the appellants that the excavators and road rollers are suitable for use on roads. Merely because a motor vehicle is put to a specific use such as being confined to an enclosed premises, will not G render the same to be a different kind of vehicle. (812-D-E( CIVIL APPELLATE JURISDICTION: Civil Appeal No. 6216-6222 of 1997. From the Judgment and Order dated 25.2.97. and 17.3.97. of the Kerala H 810 SUPREME COURT R
Excerpt shown. Read the full judgment & AI analysis in Lexace.