UNION OF INDIA Vs. SECRETARY REVENUE DEPARTMENT

JUDGEMENT

(1.) In this writ petition, the petitioners have sought the following relief: (i) Declaring the proviso to Section 3(1) of A.P. Tax on Entry of Motor Vehicle to Local Area Act, 1996 so far as it restricted exemption for Central Government for Defence purposes as void, illegal, arbitrary and ultra vires the provisions of Article 285(1) of the Constitution. (ii) Declare the proviso to Section 4(3) of A.P. Tax on Entry of Motor Vehicle to Local Area Act, 1996 insofar 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 A.P. Tax on Entry of Motor Vehicle to Local Area Act, 1996 as void and unenforceable being repugnant to Section 207 of the Motor Vehicle Act, 1988 having regard to Article 254 of the Constitution. (iv) Declare the A.P.Tax on Entry of Motor Vehicles to Local Area Act, 1996 as void and unenforceable as a whole for the Legislative incompetency with respect to the subject-matter and absence of presidential consent contemplated in Article 304(b) of the Constitution and issue a consequential direction to the respondents not to collect entry tax under the A.P.Tax on Entry of Motor Vehicle to Local Area Act, 1996 on the Motor vehicles owned and operated by the petitioner.

(2.) The factual matrix in which this writ petition is filed, is that the petitioners purchased three vehicles, one Premier 118 NE and two Tata Sumo Jeeps from Telco, Pune. These vehicles were received on 4.7.1997 and 20.8.1997. They also ordered for three vehicles which were expected to be delivered, when the writ petition was filed. The Regional Transport Officer, Ranga Reddy District was addressed on 7.7.1997 for grant of Registration and issue of Certificate. The Registration Certificate was not given on the ground that the entry tax under the Andhra Pradesh Tax on Entry of Motor Vehicles into Local Areas Act, 1996 (hereinafter referred to as 'the Act') was not paid. The levy of entry tax at the rate of 8% on the cost of the vehicle, is challenged by the petitioners.

(3.) Counter has been filed. We have heard learned Counsel for the parties.