The Madras High Court in Tvl.K.P.S Crusher v. Commercial Tax Officer, quashed Entry Tax demand made by the revenue on excavator moving on chain and reiterated that the same cannot be treated as a motor vehicle and therefore, the levy of Entry Tax on the same is invalid.
Earlier in 2007, a Division Bench of the Court in Rds Projected Ltd. v. Commercial Tax Officer, has held that the Excavator moving on chain is not a motor vehicle and no entry tax is liable on the same.
In spite of the judgment, the Revenue issued the assessment notice dated 26.02.2018 followed by a reminder dated 26.03.2018. The petitioner has not filed any objection with regard to the same and, therefore, the proposal was confirmed and the assessment order dated 18.04.2018 was passed.
Before the high court, the petitioners challenged the demand on the ground that it is passed without jurisdiction.
Justice M. Govindaraj said that “On perusal of the judgment of the Hon’ble Division Bench, it is seen that the show cause notice demanding tax itself is quashed by this Court on the ground that the Excavator cannot be treated as motor vehicle following the definition of Section 2(28) of the Motor Vehicles Act, 1988 and it is not liable for entry tax. While the matter stood thus, the demand on vehicle which is not liable for entry tax itself is without jurisdiction.”To Read the full text of the Judgment CLICK HERE