THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON’BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION No.7744 of 2011 April 01, 2011 Between: M/s.Madras Cements Ltd., Jaggayyapet, Krishna District Represented by its Senior General Manager (Admn.), Mr.S.Ramaraju … Petitioner And The Government of Andhra Pradesh, represented by its Secretary, Department of Transport, Secretariat, Hyderabad and others ... Respondents THE HON'BLE SRI JUSTICE V.V.S.RAO AND THE HON'BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION No.7744 of 2011 ORDER: (Per Hon’ble Sri Justice V.V.S.Rao) The petitioner is a company engaged in the manufacturing and marketing of cement. They have a plant of huge capacity at Jaggyyapet, Krishna District in the State of Andhra Pradesh. They also have captive mines for their plant. They procured three dumpers, three HM loaders and two cranes, which are allegedly designed for use in mines and are not made for use as motor vehicles. After visiting the petitioner company on 21.9.2010, the sixth respondent issued eight vehicle check reports calling upon them to pay tax and penalty under the Andhra Pradesh Motor Vehicles Taxation Act, 1963 (the Taxation Act). The third respondent also issued show cause notice on 19.10.2010 calling upon the petitioner to pay life tax at 7.5% of the invoice price, and penalty at 2% per month, from the date of delivery of vehicles till the date of payment. The petitioner approached the third respondent and, statedly, explained that the dumpers and the cranes were mining machinery/equipment, and were not liable to tax under the Taxation Act. They also claimed exemption under Section 10 thereof, in vain. In spite of the same, the third respondent issued demand notice on 07.2.2011 directing the petitioner to pay quarterly tax, life tax and penalty immediately. The petitioner has also filed representation dated 21.3.2011 which is pending with the third respondent. Therefore they filed the instant writ petition seeking a declaration that the levy and demand of Motor Vehicles (MV) Tax is bad and illegal. The Senior Counsel for the petitioner relies on Section 10 of the Taxation Act which reads as under. 10. Provisions of this Act not to apply to the motor vehicles designed and used solely for agricultural and mining purposes:- (1) Nothing in this Act shall apply to a motor vehicle registered in the name of the owner or occupier of any agricultural land or mine if such land is under his personal cultivation or if such mine is being worked personally by him and such motor vehicle is designed and used solely for carrying out agricultural or mining operations on such land or mine or within a distance of fifteen miles from the limits of such land or mine. (2) Notwithstanding anything contained in the Act, a tax at rupees twenty five per quarter shall be levied on any vehicle specified in sub-section (1), when the vehicle is not used solely for carrying out such agricultural or mining operations but is used by its registered owner for any other purpose of his own. (Explanations I, II and II are omitted as not relevant) The submission of the Counsel is that, as registration of the vehicles is a pre-condition for claiming exemption, the petitioner has now applied for registration. In that view of the matter, we do not propose to go into the merits of the case. If the vehicles are registered, they are exclusively designed and used for mining purposes, and if the petitioner complies with the conditions therein, the vehicles stand exempted from payment of MV Tax under Section 10 of the Taxation Act. To that extent, the Government Pleader does not dispute. Therefore we dispose of the writ petition directing the third respondent to consider the application of the petitioner for registration of eight dumpers and cranes under Section 39 of the Motor Vehicles Act, 1988. This exercise may be completed, unless the petitioner has not applied so far, within a period of four weeks from the date of receipt of a copy of this order. It shall be open to the petitioner, if they have not already applied, to now do so. The writ petition is, accordingly, disposed of. No costs. _______________ (V.V.S.RAO, J) ______________________________ (RAMESH RANGANATHAN, J) April 01, 2011 YS