Article 265 - The Legal Chamber

The Supreme Court ruled that motor vehicle tax under the Andhra Pradesh Act is leviable only if a vehicle is used or kept for use in a "public place." It held that restricted industrial premises, inaccessible to the public, do not constitute a public place. Consequently, vehicles operating exclusively within such enclosed areas are not liable for the tax, and a rule creating a presumption of 'use' must be read in harmony with this charging section. Facts Of The Case: The appellant, M/s Tarachand Logistic Solutions Limited, was awarded a contract to operate within the enclosed central dispatch yard of the Visakhapatnam Steel Plant (RINL). Pursuant to this, it deployed 36 registered motor vehicles which, from April 1, 2021, were confined solely to operating inside this restricted premises,...

The Supreme Court held that payment of tax and penalty under Section 129 of the CGST Act does not absolve the proper officer from passing a reasoned order under Section 129(3). Such an order is mandatory to safeguard the taxpayer’s right to appeal and ensure compliance with principles of natural justice and due process under Article 265 of the Constitution. Facts Of The Case: The appellant, M/s ASP Traders, a Karnataka-based dealer, consigned 17,850 kg of dry arceanut to a Delhi-based company. During transit, the goods were transhipped, and seven bags went missing. The vehicle was subsequently detained by the Uttar Pradesh Mobile Squad in Jhansi. A notice was issued under Section 129(3) of the CGST Act, alleging discrepancies including the shortfall in quantity and questioning the existe...

Tag: Article 265

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