STATE OF KARNATAKA Vs. M MADHVARAJ

JUDGEMENT

(1.) ONE revision petition is by the State which is aggrieved by the order in one of the matters pertaining to the assessment year 1976-77. The assessee had earlier purchased what is referred as the chassis of a lorry and thereafter built body on it and used the same. Subsequently the lorry was sold. The assessee contended that the sale of the vehicle did not attract any sales tax on the ground the earlier purchase had attracted sales tax and the tax was paid on the said sale transaction on the basis that what was purchased by the assessee was a motor vehicle under entry 70 of the Second Schedule to the Karnataka Sales Tax Act, 1957 ("the Act" for short ). This contention of the assessee was accepted by the Karnataka Appellate Tribunal and hence the revision petition by the State. S. T. R. P. No. 35 of 1989 is by another assessee. The assessment period is November 16, 1982 to November 4, 1983. The assessing authority had accepted the contention of the assessee that the vehicle sold by the assessee was not to be taxed again, because tax had been paid on the chassis frame-cum-engine when it was purchased on June 20, 1980, under the aforesaid entry 70. This order of the assessing authority was revised by the Deputy Commissioner, who held that the earlier purchase by the assessee was a "chassis" and it became motor vehicle only after body was built by the assessee. This order was upheld by the Karnataka Appellate Tribunal. Hence the assessee has come up in revision. In the three writ petitions filed by another assessee also an identical question arises. A clarification issued by the Commissioner on August 8, 1989, is under challenge in these writ petitions. In the said clarification, the Commissioner has stated that the truck plus chassis-frame, without the platform or the body built on the chassis-frame, is liable to be taxed under entry 171 of the Second Schedule and if the body is built subsequently thereon, it becomes motor vehicle and then when the said motor vehicle is sold, entry 70 would be attracted. This entry 70, has now become item 13 of Part M to the new Second Schedule to the Act, with effect from April 1, 1988.

(2.) IN the writ petitions, the petitioners have produced the photo of a "chassis-frame" and the photo of truck plus chassis-frame (vide annexure A ). According to the assessee, in all these cases, they have purchased initially what is described as truck plus chassis-frame and this truck plus chassis-frame is nothing but a motor vehicle falling under entry 70 of the Second Schedule to the Act, as it then stood. All the assessees assert that the respective sales under which they purchased the truck plus chassis frame had attracted tax under entry 70 and taxes were paid treating the articles so purchased as motor vehicles.

(3.) ENTRY 70 : "motor vehicles including motor cars, motor taxi cabs, motor cycle and cycle combinations, motor scooters, motorettes, motor omnibuses, motor vans and motor lorries. "