Tax should be levied on the cost of the motor vehicle as per the Andhra Pradesh Motor Vehicles Taxation Act, 1963, and in compliance with constitutional provisions.

ORDER :

These Writ Petitions are filed under Article 226 of the Constitution of India for the following relief:

W.P. No. 12089 of 2019:-

"…to issue Writ order or direction more particularly in the nature of Mandamus declaring the action of the Respondents in demanding Tax 14 percent on the net invoice price of INR 11,10,500/- Invoice No. V19VSI263 dated 12/06/2019 for the Petitioners Hyundai Venue 1 0 Turbo GDI DCT SX Motor Vehicle bearing No AP 39 BK 9573 with Chassis No. MALFC81 AVKMO 18346 Engine No G3LCKM804163 instead of on the cost of the motor vehicle of INR 8,60,853/- 12 contrary to Section 3 Proviso Four of the Andhra Pradesh Motor Vehicles Taxation Act, 1963 R/w Schedule Six and Andhra Pradesh Motor Vehicles Taxation Rules 1963 as illegal, arbitrary, without jurisdiction and violative of Articles 14, 19, 265 and 300-A of the Constitution of India and consequently to direct the Respondents to forthwith refund the excess Tax of INR 52,168/- (Rupees fifty two thousand one hundred and sixty eight only) collected from the Petitioner illegally..."

W.P. No. 3049 of 2021:-

"…to issue Writ order or direction more particularly in the nature of Mandamus declaring the action of the Respondents in collecting life tax 14 percent coming to INR 4,41,000/- (Rupees four lakh forty one thousand only) on the IG T of INR 5,95,946/- Rupees five lakhs ninety five thousand nine hundred and forty six only and Compensation Cess of INR 4,25,676/- (Rupees four lakhs twenty five thousand six hundred and seventy six only) along with the cost of the BMW X1 LCI Model Motor Vehicle bearing Registration No. AP39 GQ 5679 with Chassis No. WBA77ADO7LEP 29420 Engine No. 0126Y256 instead of the cost of the motor vehicle of INR 21,28,379/- alone contrary to Section 32 Fourth Provisio of the Andhra Pradesh Motor Vehicles Taxation Act 1963 R/w Sixth Schedule hereinafter called the Act and the Andhra Pradesh Motor Vehicles Taxation Rules, 1963 hereinafter called the Rules as illegal, arbitrary, without jurisdiction and violative of Articles 14, 19, 265 and 300-A of the Constitution of India and consequently to direct the Respondents to refund INR 1,16,000/- (Rupees one lakh sixteen thousand only) being the excess tax paid by the Petitioner.."

2. As the issue involved in both these writ petitions is one and the same, these writ petitions are dealt with by a common order.

3. Brief facts of the W.P. No. 12089 of 2019 are that the petitioner has purchased the Hyundai Venue 1.0 Turbo GDI DCT SX+ Motor Vehicle bearing No. A.P 39 BI 9573 with chassis No. MALFC81A VKM 018346, Engine No. G3LCKM804163 for a price of INR 8,60,853/- from the dealer, Kusalava Motors Pvt., Ltd., Vijayawada. At the time of purchase, the petitioner on demand paid INR 1,20,519/- towards 14% CGST and INR 1,20,519.38/- towards 14% SGST. The petitioner paid INR 8,608/- towards Compensation Cess under the provisions of the Goods and Service Tax Act, 2017. The petitioner thus paid total INR 11,10,500/- vide invoice No. V19VSI-263 dated 12.06.2019. The petitioner was forced to pay INR 1,55,470/- @ 14% towards Tax allegedly levied under Section 3 of the Andhra Pradesh Motor Vehicles Taxation Act, 1963 R/w Schedule –VI and Andhra Pradesh Motor Vehicles Taxation Rules, 1963 on the price shown in the invoice dated 12.06.2019, which is inclusive of Central GST, State GST & Cess for the reasons best known to the respondents without there being any power much less authority is collecting tax on the basis of “net invoice price” which is inclusive of CGST, SGST & Compensation Cess as well.

4. The motor vehicle purchased by the petitioner falls under fourth proviso to Section 3(2) of the Act and the Tax leviable under Schedule VI of the Act is 12% on the cost of the Motor Vehicle which is INR 8,60,853/- as the Unlanden weight is 1168 kgs.

5. Article 265 & 300-A of the Constitution of India provides that no tax shall be levied or collected except by the authority of law and further the petitioner cannot be deprived of