COMMISSIONER OF SALES TAX Vs. RAJPUTANA MOTORS

JUDGEMENT

(1.) THIS is a reference under Section 44 (1) of the Madhya Pradesh General Sales Tax Act, 1958 (in short, "the Act"), at the instance of the department. The following question of law has been referred to us by the Tribunal for our decision :

(2.) THE assessee is engaged in the business of sale of auto-rickshaws, mini-buses and delivery, pick-up and ambulance vans. During the assessment period 1st July, 1976 to 30th June, 1977, it had sold certain ambulance vans, which were subjected to 12 per cent tax under entry No. 1 of Part II of Schedule II of the Act by the assessing authority. The assessee claimed that as per Government notification dated 4th March, 1976, it ought to have been taxed at the reduced rate of 10 per cent on its sales of ambulance vans. The contention of the assessee was upheld in second appeal by the Tribunal. Being aggrieved, the department applied for a reference under Section 44 (1) of the Act and accordingly the aforesaid question of law has been referred to us by the Tribunal.

(3.) BY the notification in question, the Government reduced the rate of tax to 10 per cent on trucks, buses, mini-buses and pick-up vans. Because the ambulance or the delivery vans were not specifically mentioned in the said notification, the assessing authority was of the view that it was not applicable to sales of ambulance and delivery vans. As pointed out by the Tribunal, ambulance is a vehicle primarily used in carrying sick persons. It may be moulded either as a truck or as a pick-up van. The mini-bus could be used as an ambulance after removing the seats and changing the internal lay out of the seating arrangements. Under the circumstances, there is no reason why the ambulance and the delivery vans should be deprived of the reduced rate of tax under the said notification dated 4th March, 1976 of the Government. We are, therefore, of the view that the Tribunal was justified in coming to the conclusion that the ambulance and delivery vans were entitled to be subjected to reduced rate of tax of 10 per cent as per notification dated 4th March, 1976. We accordingly answer the said question of law in favour of the assessee and against the Revenue.