VIJAYA VASAVA MOTORS ELURU Vs. ASSISTANT COMMISSIONER LTU

JUDGEMENT

(1.) THE endorsement of the respondent dated 28/5/2008, directing the petitioner to pay tax of Rs. 72,394/- pursuant to the order of the revisional authority dated 24. 11. 2006, is questioned in this writ petition as arbitrary, unjust and contrary to G. O. Ms. No. 144 dated 11. 02. 2008. Petitioner seeks a direction to the respondent to implement G. O. Ms. No. 144 and to take consequential action with regards the assessment years 2002-03 and 2003-04.

(2.) FACTS, in brief, are that the petitioner is a registered dealer on the rolls of the respondent. They filed returns for the assessment years 2002-03 and 2003-04 disclosing sale and purchase of two and three wheelers as also spare parts, replacement of spare parts during the warranty period and servicing charges collected towards servicing of the vehicles. The assessment order, for the assessment year 2002-03 dated 31/12/2003, was revised by the Deputy commissioner (CT), Eluru on 23/11/2006, tax was levied on the amounts received by the petitioner towards replacement of spare parts supplied during the warranty period for two and three wheelers, and the net tax payable on revision was determined as Rs. 72,354. 00.

(3.) FOR the assessment year 2003-04, the respondent passed the assessment order on 10/5/2005 levying tax of Rs. 2,36,85,218. 00. Aggrieved thereby, the petitioner preferred an appeal to the Appellate Deputy Commissioner who followed the judgment of the Supreme Court in Mohd. Ekram Khan and Sons v. Commissioner of Trade Tax, Uttar Pradesh and, by order dated 4/7/2006, dismissed the appeal to the extent tax was levied on replacement of spare parts during the warranty period.