LAW FOR ALL

“(ii) Levy of life tax on the CEVs in mining industry: Some CEVs are designed for digging, carrying, loading/unloading, drilling with or without special modification for use in mining industry. Section 10 of the Taxation Act exempts such CEVs used solely in mining and agricultural purposes from payment of MV Tax. The Section makes it conditional that all these vehicles should also be registered under the MV Act. Indeed any class of motor vehicles cannot be permitted to be driven in a public place without being registered in accordance with Chapter IV of the MV Act. As per Section 41, an application for registration shall be accompanied by such documents as may be prescribed by the Central Government by the Rules. As per Rule 47 of the Central Rules, an application for registration shall be made in Form 20 to the Registering Authority. There is no dispute that at the time of registration, Rule 3 of the Andhra Pradesh Motor Vehicles Taxation Rules, 1963 (the A.P. Rules) requires the Registering Authority to make an entry regarding the amount of tax paid in the certificate of registration. Rule 6 of the A.P. Rules requires the owner to make the payment of tax at the time of registration of the vehicle. Therefore even when a motor vehicle is designed and used for mining purpose, first it has to obtain registration by paying tax so as to seek exemption under Section 10 of the Taxation Act. The grievance of the petitioners, though well founded, in view of the additional affidavit filed by the Principal Secretary the position is now clear that all those petitioners who use the CEVs for mining operations, can seek refund of the life tax after obtaining the exemption from the competent authority.”