(1.) THE challenge in these writ petitions is to the Andhra Pradesh Tax on Entry of Motor Vehicles into Local Areas Act, 1996 (A.P. Act No.26 of 1996) (the Act, for brevity). Though the attack is against the constitutional vires of charging Section 3 of the Act, without which the other provisions cannot survive, the entire Act may have to suffer invalidation if the petitioners succeed in these cases.
(2.) THE following background of these cases is taken from WP Nos.1564 of 2009, 6713 of 2010 and 2348 of 2011.
(3.) THE CCT who is arrayed as respondent in all the cases filed a separate counter. In addition to the pleas taken by the State, a further plea is raised to the effect that the impugned levy is compensatory tax not requiring previous sanction of the President. THE CCT further contends that local bodies have been taking up programmes relating to laying of roads, upkeep of roads, installation of street lights, supply of water, maintenance of sanitation within the local area. THEy need huge funds for implementing these schemes. THEre is resource crunch. THE local bodies especially the villages are not able to generate their own resources to meet the growing expenditure towards amenities and facilities. THEre is a need for funding the local bodies to discharge the statutory obligations. THE laying of roads would ensure free flow of trade and commerce. Establishment of market yards, water ways and other infrastructure facilities will attract more trade from other States. THE substantial allocation of funds is to be met by the State and therefore, entry tax is compensatory and regulatory in nature. Denying the allegation of the petitioners, it is stated that excavators and road rollers are motor vehicles, and therefore, the CCT issued a clarificatory circular informing the subordinates the decision of the Supreme Court in M/s. Bose Abraham v. State of Kerala, (2001) 3 SCC 157 = (2001) 121 STC 614 = AIR 2001 SC 835. THEy were advised to levy tax on these vehicles after examining each case. PART - II SUBMISSIONS AND ISSUES
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