The Single bench of Madras High Court(HC) held that, goods vehicles operating on chains not liable to pay entry tax as per the provisions of Tamil Nadu Tax on entry of Motor Vehicles Act, 1990.
The single judge bench of Justice T.S.Sivagnanam also quashed notices issued to petitioner M/s.Koutham Blue Metals directed to file his objection against the proposal made by the respondent for levy of entry tax on goods vehicles.
The petitioners contended that, the vehicle in question is not a motor vehicle and it operates on chains and it cannot ply in the road. The learned counsel submitted that a similar issue was considered by the Hon’ble First Bench of this Court in the case of RDS Projects Ltd v. Commercial Tax Officer, Chennai reported in [2007] 8 VST 574(Mad).
The petitioner also furnished a copy of the invoice from which it is seen that the petitioner has purchased JS140, HD dipper, 0.63 bkt with Preclar. The photographs of the vehicle in question has also been produced before this Court which shows that the vehicle operates on chains and does not operate on inflated tyres.
Justice T.S.Sivagnanam also observed that, the decision in the case of RDS Projects Ltd v. Commercial Tax Officer, Chennai will be squarely applicable to the present case.This Court placing on record the original invoice and photographs of the vehicle in question has accepted the case of the petitioner and held that the impugned show cause notice is untenable.
Read the full text of the Judgment here.
