THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON’BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION No.7591 OF 2005 Dated:27.06.2011 Between: M/s.Madhucon Projects Limited, Jubilee Hills, Hyderabad, represented by its Director (Finance), Mr.S.Vaikuntanathan .. Petitioner And The Commercial Tax Officer, Jubilee Hills Circle, Hyderabad And another .. Respondents THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON’BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION No.7591 OF 2005 ORDER: (Per Hon’ble Sri Justice Ramesh Ranganathan) In this writ petition the vires of the Andhra Pradesh Tax on Entry of Motor Vehicles into Local Areas Act, 1996 (1996 Act) and the Andhra Pradesh Tax on Entry of Goods into Local Areas Act, 2001 (2001 Act) are under challenge as also the assessment order of the first respondent dated 29.11.2004 levying tax on soil compactors, excavators, generators and compressors under the 1996 Act and the 2001 Act respectively for the assessment years 2002-2003 and 2003-2004. The petitioner, a company engaged in execution of works contract in the nature of road works, is a dealer registered under the Andhra Pradesh General Sales Tax Act, 1957 on the rolls of the first respondent. The first respondent, by order dated 29.11.2004, levied Entry Tax on generators, compressors, compactors as also excavators. The said order is a composite order levying tax both under the 1996 Act and the 2001 Act. A Division Bench of this Court in Sree Rayalaseema Alkalies and Allied Chemicals Limited, Hyderabad v. State of Andhra Pradesh[1] held that the provisions of 2001 Act were ultra vires under Article 304 of the Constitution of India. This Bench in M/s.Vijaya Traders, Kadapa v. the Commercial Tax Officer-I, Kadapa[2], upheld the vires of Section 3 of 1996 Act, but remanded the matter to the assessing authority to examine whether the vehicles in question were “motor vehicles” falling within the ambit of the 1996 Act. The assessing authority was required to seek the opinion of an expert from the transport department, if he considered it necessary. In the impugned order dated 29.11.2004 generators and compressors were held to fall within the ambit of the 2001 Act which has been held to be ultra vires Article 304 of the Constitution of India by this Court. As such the levy of Entry Tax on generators and compressors is illegal. The assessment order to that limited extent is set aside. So far as compactors and excavators are concerned, they fall within the ambit of the 1996 Act the validity of which is upheld by this Bench. We consider it appropriate, therefore, to set aside the order of assessment and remand the matter back to the assessing authority to examine whether compactors and excavators are “motor vehicles”, under the 1996 Act if so chooses, after obtaining the opinion of an expert from the Transport Department. The writ petition is, accordingly, disposed of. However, in the circumstances, no order as to costs. ________________ (V.V.S. RAO, J) ______________________________ (RAMESH RANGANATHAN, J) 27.06.2011 KH [1] 2008 APSTJ (46) 1 [2] W.P.No.12455 of 2005 and batch, Dated 22.06.2011