Telangana High Court
M/S.Arunachala Logistic Pm Ltd., vs The Dy.Commercial Tax Officer, on 22 November, 2022
THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN
AND
THE HON'BLE SRI JUSTICE C.V.BHASKAR REDDY
WRIT PETITION No.20350 of 2005
ORDER:(Per the Hon'ble the Chief Justice Ujjal Bhuyan) Heard Mr. S.Dwarakanath, learned Senior Counsel for the petitioner and Mr. K.Raji Reddy, learned Senior Standing Counsel, Commercial Tax for respondent No.1.
2. By filing this petition under Article 226 of the Constitution of India, petitioner has prayed for the following reliefs:
"18. For the reasons stated above, it is prayed that the Hon'ble Court may be pleased to issue a Writ of Mandamus or any other appropriate writ or order or direction declaring Item 14 of First Schedule to the Act as amended by Act No.3/2003 with effect from 1.5.2003 providing for levy of tax in respect of holders of transport permits at Rs.750/- per vehicle as violating Article 276(2) of Constitution of India and read down the Entry to the effect that tax can be levied under it subject to a ceiling of Rs.2,500/- per annum and consequently, set aside the orders dated 19.3.2005 for 2003-04 and 2004-05 passed by the 1st Respondent levying tax of Rs.66,000/- in 2 HCJ & CVBRJ W.P.No.20350 of 2005 respect of 88 vehicles at Rs.750/- per annum and also declare that the Petitioner is liable to pay profession tax of Rs.2,500/- only per annum and pass such other order or orders as the Hon'ble Court may deem fit and proper in the circumstances of the case."
3. This Court by order dated 15.09.2005 had admitted the writ petition for hearing and also passed an interim order to the effect that respondents were directed not to collect any amount more than Rs.2,500.00 per annum from the petitioner pending further orders.
4. In the hearing today, Mr. S.Dwarakanath, learned Senior Counsel for the petitioner has drawn our attention to the clarification dated 29.04.2009 issued by the then State Government of Andhra Pradesh clarifying that in terms of Article 276(2) of the Constitution of India, tax payable under Entry 14 of Schedule 1 of Andhra Pradesh Tax on Professions, Trade, Callings and Employments Act, 1987 shall not exceed Rs.2,500.00 per annum even though a person may hold permit for more than three transport vehicles. The clarification reads as under:
3 HCJ & CVBRJ W.P.No.20350 of 2005 "The Deputy Commissioner (CT)'s in the State are here by informed that the Government have clarified in the reference cited (Copy enclosed) that as per the entry 14 of Schedule 1 of the A.P. Tax on Professions, Trade, Callings and Employments Act, 1987, the profession Tax payable by a holder of permits of Transport vehicles (other than Auto Rickshaws) granted under M.V. Act, 1988 is Rs. 750/- per vehicle per annum as amended by Act No. 3 of 2003. But under Article 276(2) of the constitution, the amount of Profession Tax payable by a person per annum shall not exceed Rs.2500/-. Hence, the amount of Profession Tax payable under entry 14 of Schedule I of the Act shall not exceed Rs. 2500/- per annum even though a person may hold permits for more than (3) transport vehicles as the amount of Profession Tax shall not exceed Rs.2500/- per annum, per person."
5. Thereafter the then Government of Andhra Pradesh in the Revenue Department issued G.O.Ms.No.82 dated 04.02.2013 carrying out certain amendments by substituting the First Schedule. As per Serial No.16 of the substituted First Schedule, it has been clarified that holders of permits of less than three transport vehicles (other than auto-rickshaws) granted under Motor Vehicles Act, 1988 would not be required to pay any tax. On the other hand, 4 HCJ & CVBRJ W.P.No.20350 of 2005 holders of permits of three or more transport vehicles (other than auto-rickshaws) granted under Motor Vehicles Act, 1988 would have to pay a maximum of Rs.2,500.00 per annum.
6. Thus, we find that by issuance of the clarification and G.O.Ms.No.82 dated 04.02.2013, grievance of the petitioner has been redressed. Consequently, orders dated 19.03.2005 for the assessment years 2003-04 and 2004-05 are hereby set aside.
7. Writ Petition is accordingly allowed. However, there shall be no order as to costs.
8. Miscellaneous applications pending, if any, in this Writ Petition shall stand closed.
__________________________ UJJAL BHUYAN, CJ ___________________________ C.V.BHASKAR REDDY, J Date: 22.11.2022 KL