M/S.Iswarya Motors,Rep By Its vs. The Regional Transport

WP(MD)/5633/2019HC MadrasGSTCNR HCMD01052987201931 March 2021Bench: HONOURABLE MR JUSTICE G.R.SWAMINATHAN4 pages

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Held

The Court held that life time tax should be computed based on the dealer's invoice price, as this represents the actual cost paid by the purchaser. The initial payment based on the manufacturer's price does not preclude the petitioner from seeking correct computation.

Facts

The petitioner purchased a motor car and was asked to pay life time tax on the manufacturer's price. The petitioner contended that the tax should be levied on the dealer's invoice price, which included GST components.

Key Issues

Whether life time tax for a motor vehicle should be computed on the manufacturer's price or the dealer's invoice price inclusive of taxes.

Sections Cited

Section 2(3-A), Section 4(1-A)(a), Rule 2(aa)

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Cause title — parties, addresses and appearances

W.P.(MD)No.5633 of 2019 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 31.03.2021 CORAM: THE HONOURABLE MR.JUSTICE G.R.SWAMINATHAN W.P.(MD)No.5633 of 2019 and W.M.P.(MD)No.4457 of 2019 M/s.Iswarya Motors, Rep. by its Partner, Mr.K.Mukundan, S/o.Krishna Rao, No.252, Tenkasi Road, Rajapalayam, Virudhunagar District, Residing at No.62/1, P.S.K.Nagar, Rajapalayam, Virudhunagar District. ...Petitioner -Vs- The Regional Transport Officer, Srivilliputhur, Virudhunagar District. ... Respondent PRAYER: Petition filed under Article 226 of the Constitution of India to issue a Writ of Mandamus, directing the respondents herein to accept the life time tax of the petitioner's Motor Car namely Mercedes Benz India Private Ltd., Light Motor Vehicle Passenger car bearing its temporary registration mark Number TN/38/TMP/2019/592, coloring polar white, Engine No.65192134654533, Chasiss No.WDD2050026L037817, on receiving the life time tax for the invoice price of the petitioner's purchase of the vehicle of Rs.31,75,000/-. For Petitioner : Mr.A.Saravanan For Respondent : Mrs.M.Rajeswari Government Advocate

Heard

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Reproduced from the public record of the Madras High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.