Andhra Pradesh Motor Vehicles Taxation Act, 1963 1947

ANDHRA PRADESH
MOTOR VEHICLES TAXATION
ACT, 1963
5 OF 1963

An Act to consolidate and amend the law relating to levy of a

tax on motor vehicles in the State of Andhra Pradesh.

Be it enacted by the Legislature of the State of Andhra Pradesh

in the Fourteenth Year of the Republic of India, as follows :

1. Short title, extent and commencement.—(1) This Act

may be called the Andhra Pradesh Motor Vehicles Taxation Act,
1963.

(2) It extends to the whole of the State of Andhra Pradesh.

(3) It shall come into force on such date as the Government

may, by notification in the Andhra Pradesh Gazette,1 appoint.

2. Definitions.—In this Act, unless the context otherwise

requires :—

(a) “Government” means the State Government;

(b) “Laden weight in relation to a motor vehicle or a

trailer attached to it” means, if a permit is issued to the
motor vehicle under the Motor Vehicles Act, 19392
(hereinafter referred to as Motor Vehicles Act) the
maximum laden weight specified for the motor vehicle
1. Published in A.P. Gazette, Part IV, Extraordinary, No. 5, Dt. 5th February, 1963.
2. Now see Motor Vehicles Act, 1988 (Act No. 59 of 1988)

1947
1948 Andhra Pradesh Motor Vehicles Taxation Act, 1963 [S. 2

or the trailer in such permit; if no such permit is issued,

the maximum laden weight specified for the motor
vehicle or the trailer in the certificate of registration of the
motor vehicle and in case such weight is not specified in
such certificate, the maximum laden weight of the motor
vehicle of the trailer determined in such manner as may
be prescribed;

(c) “Licensing officer” means an officer appointed1 by the

Government as such for the purposes of this Act;

(d) “Notification” means a notification published in the

Andhra Pradesh Gazette and the expression ‘notified’
shall be construed accordingly;

(e) “Prescribed” means prescribed by rules made under

this Act;

(f) “Registered owner” means the person in whose name

a motor vehicle is registered under the Motor Vehicles Act;

(g) “State” means the State of Andhra Pradesh;

(h) “Tax” means the tax leviable under the Act;

(i) “Year” means the financial year; “half-year” means the

first six months or the second six months of such year;
and “quarter” means the first three months or the second
three months of such half-year;

(j) words and expressions used but not defined in this Act,
shall have the meanings assigned to them in the Motor
Vehicles Act.

1. See Notification No. 1

S. 3] Andhra Pradesh Motor Vehicles Taxation Act, 1963 1949

NOTES
Motor Vehicles Act, not relevant.—Except for ascertaining the meaning
of words defined in the Motor Vehicles Act that was in force in February,
1963 and not defined in the Taxation Act, nothing contained in the Motor
Vehicles Act, old or new, is relevant in interpreting the Taxation Act. State of
Assam v. Labanya, AIR 1967 SC 1575 : (1967) 3 SCR 611; Bolani Ores v. State of
Orissa, AIR 1975 SC 17 : (1974) 2 SCC 777; State of Karnataka v.
K.Gopalakrishna.Shenoy, AIR 1987 SC 1911 : (1987) 3 SCC 655. However, the
Taxation Act itself may refer to a particular provision of the Motor Vehicles
Act in which case such provision becomes relevant to the extent indicated
by the Motor Vehicles Taxation Act.

Failure to bear this fundamental proposition in mind much damage

has been done to the A.P. Motor Vehicles Taxation Act.

3. Levy of tax on motor vehicles.—(1) The Government

may, by notification,1 from time to time, direct that a tax shall be
levied on every motor vehicle used or kept for use,2 in a public place
in the State.

(2) The notification issued under sub-section (1) shall specify

the class of motor vehicles on which, the rates for the periods at
which, and the date from which, the tax shall be levied :

Provided that the rates of tax shall not exceed the maximum
specified in column (2) of the First Schedule in respect of the classes
of motor vehicles fitted with pneumatic tyres specified in the
corresponding entry in column (1) thereof; and one and a half times
the said maximum in respect of such classes of motor vehicles as are
fitted with non-pneumatic tyres :
3
[Provided further that in the case of motor cycles (with or
without attachment), invalid carriages, the tax shall be levied at the
rates specified in the Third Schedule].

1. See Notification II Sl. No. (1) and (2).

2. See Rules 12 and 12A.
3. Subs. by Act 11 of 2010, w.e.f. 02-02-2010.
1950 Andhra Pradesh Motor Vehicles Taxation Act, 1963 [S. 3
1
[Provided also that in the case of Construction Equipment
vehicles including Road Rollers, the rate of tax shall be levied at the
rates specified in the Fourth Schedule].
2
[Provided also that in the case of three or four wheeler motor
vehicles including Motor Cars coming under non-transport category,
omni buses upto a seating capacity of (10) ten persons in all, new
Motor Cabs and the Motor Cabs of other States that are entering
into the rolls of this State by way of change of address or transfer
of ownership, the tax shall be levied at the rates specified in the Sixth
Schedule:
Provided also that Non-Transport Vehicles meant for carrying
persons, owned by Companies/Institutions/Societies/Organisations
upto a seating capacity of (10) ten in all and second or more
personalized vehicles upto a seating capacity of (10) in all owned
by an individual, the tax shall be levied at the rates specified in the
Seventh Schedule].
3
[Provided also that in respect of motor vehicles operated with
battery / compressed natural gas/solar energy, no tax shall be levied
for a period of five years from the date to be notified4[and for the
remaining period in respect of E-rickshaw and E-cart which are
battery operated vehicles the tax shall be levied at the time of
registration at the rate specified in the Eighth Schedule].
Provided also that in case of Auto-rickshaw with seating
capacity up to four in all, and light goods vehicles up to 3000 (Three
thousand) Kgs in laden weight, the tax shall be levied at the rates
specified in the Ninth Schedule].
Note

The Government of A.P. has exempted tax and in respect of

3 wheelers contract carriages (passengers Autorickshaws) with seating
capacity of four, five, six and seven in all; three-wheeled Goods
Carriages (Light Goods Vehicles) up to the Gross Vehicle Weight

1. Subs. by Act 11 of 2010, dt. 2-2-2010.

2. Subs. by Act 11 of 2010, w.e.f. 2-2-2010.
3. The fourth proviso inserted by APMVT (Second Amendment) Act, 1997 (Act No. 32
of 1997) – commenced on 20-4-1998, vide G.O.Ms.No. 81, TR& B (Tr- II)
dated 17-4-1998, A.P. Gazette Part-l (Ext) dated 20-4-1998.
4. Added by 27 of 2018 w.e.f. 08-06-2018.
S. 3] Andhra Pradesh Motor Vehicles Taxation Act, 1963 1951

(GVW) of 3000 kgs; Tractors and Tractor -Trailers used for agricultural
purpose. [G.O.Ms. No. 16 TR&B (Tr.I) Dept., dt. 06-02-2019].
Notes
1. Scope.–On consideration of the Motor Vehicles Taxation Act
and Sec. 2 of the Motor Vehicles Act and the facts of the batch of cases before
it, the High Court held—
(a) If an enactment substantially falls within the powers conferred
by the Constitution upon the Legislature which enacted it, the
same is not invalid even if it incidentally encroaches on matters
assigned to another (Tansukh Rai Jain).
(b) The object of tax may fall under two or more entries in the State
List. If a State law attracts persons or things, which are
incidentally also the subject matter of any other legislative
entry, the question of vires does not arise.
(c) “Motor Vehicles” as goods attract tax with reference to different
aspects. Even if the tax under the Taxation Act is considered –
which is doubtful – as a tax also on the goods, fitted and carried
by the Construction Equipment Vehicle (CEV), the same cannot
be said to be beyond legislative competence.
(d) Even if the construction equipment and the CEVs are presumed
to be two separate things, the tax levied under Section 3 (1) of
the Taxation Act cannot be treated as tax on goods. It is a tax on
“motor vehicles” suitable for use on roads which are kept for
use or are used in the State of Andhra Pradesh.
(e) A plea of impingement of the commerce clause can never be made
to sustain a challenge to a Taxation law coming under Entry 57
of the State List.
(f) Unless a State law directly and immediately restricts or impedes
free flow and movement of trade, it does not infringe free trade
right. The taxes levied do not amount to restriction unless they
operate as a direct and immediate restriction on the free trade
right. Even a State law is immune to challenge if such a law
levies non-discriminatory taxes or taxes which are
compensatory in nature.
(g) The burden is always on the caveator to demonstrate that a
State directly and immediately restricts free trade. The existence
and non-existence of restrictions impeding free flow of trade is
1952 Andhra Pradesh Motor Vehicles Taxation Act, 1963 [S. 3

then a matter of inference from the material presented for

scrutiny.
(h) Compensatory tax is a sub-class of “a fee”. Unlike a tax it need
not be progressive, but it has to be broadly proportional. As it
is based on the principle of equivalence the value of quantifiable
benefit is to be measured by the costs incurred for providing
the facility/service which is the basis for reimbursement for
recompense for the provider of the services/facilities. If the
Government, by some positive action, confers upon individuals
some measurable advantage, the community at large shall pay
for it even if the benefits are intended to help the growth of
trade. (Jindal Stainless (2).
(i) The burden to establish nexus between the compensatory tax
and the benefits conferred is always on the State.
(j) A tax, under the Taxation Act, is both compensatory and
regulatory. When the State Legislature is competent under Entry
57 of the State List to make a law for levying taxes on “Motor
vehicles” suitable for use on the roads, it only means that the
Constitution itself permitted making of such a law subject to
any law made by the Parliament under Entry 35 of the
Concurrent List.
(k) Though the State may defend the law referable to Article 304 of
the Constitution with reference to clauses (a) and (b) thereof, as
well as on the principle of compensatory tax, the State would
not be required to discharge the burden when a law is made
with reference to Entry 57 of the State List.
(l) The judicially evolved concept of compensatory tax, and the
burden to prove the nexus, would be more severe in the case of
a law, which impinges the right under Article 301 of the
Constitution. The burden would not be that heavy when the
State defends a law, which comes under Entry 57 of the State
List.
(m) Even though it is a compensatory tax, tax on motor vehicles
facilitates trade, commerce and intercourse within the State by
providing and managing roads in motorable condition. The levy
is compensatory but it does not violate the provisions of Article
301 of the Constitution. (CGM, Jagannath Area)
S. 3] Andhra Pradesh Motor Vehicles Taxation Act, 1963 1953

(n) There is no inconsistency or repugnancy between the third

proviso and Section 3 (1) of the Taxation Act. The third proviso
to Section 3 (2) fits into the general scheme of the plenary
legislation.
(o) The Court adopts dual review principles – either strict scrutiny
as a primary review or intermediate/deferential secondary
review. The nature of the power exercised by the public
authority, the subject matter of the decision and the
circumstances leading to the decision are the deciding factors
as to which review principle is to be adapted.
(p) When a legislation is challenged on the ground that the State
lacks competency, the Court has to insist upon the strict scrutiny
test. A complaint of breach of fundamental rights or other
constitutional provisions also call for primary review applying
strict security.
(q) A fiscal legislation is also subject to Article 14 of the Constitution.
Absolute equality and justice is not attainable in tax laws and
a legislature, in order to tax some, need not tax all. It can adopt
a reasonable classification of persons and things in imposing tax
liabilities.
(r) The Taxation law cannot be termed discriminatory because
different tax rates are prescribed for different items, provided
the said items form a distinct and separate group and there is a
reasonable nexus between the classifications and the object of
prescribing differential rates.
(s) If the legislature adopts a broad classification, failure to mini-
classify even if it is possible, does not infringe Article 14 of the
Constitution (Murthy Match Works). The mere fact that a tax
falls more heavily on certain goods or persons may not result
in its invalidation. (Malwa Bus Service).
(t) The Courts’ lean more readily in favour of upholding the
constitutionally of a taxing law in view of the complexities
involved in the social and economic life of the community. It is
one of the duties of a modern legislature to utilize the measures
of taxation introduced by it for the purpose of achieving
maximum social good. One has to trust the wisdom of the
legislature in this regard. (Malwa Bus Service).
1954 Andhra Pradesh Motor Vehicles Taxation Act, 1963 [S. 3

(u) Unless a fiscal law is manifestly discriminatory, the Court

should refrain from striking it down on the ground of
discrimination. (Khandige Sham Bhat).
(v) As the age of the vehicle is one of the factors which has
gone into legislative determination of the rate of tax, it cannot
be said that such differential rates are tainted with
unreasonableness.
(w) Persons, who are required to pay life a second time, when their
vehicles are brought into the State again, can seek refund of the
amount. All those who use the CEVs for mining operations can
also seek refund of the life tax after obtaining exemption from
the competent authority.
(x) The two principles, to decide whether a motor vehicle is “used
or kept for use in a public place in the State of Andhra Pradesh”,
are : (i) if the motor vehicle is registered – though not always
determinative – it is sure deemed that it is used or kept for use
in the State (Travancore Tea Co. Ltd.); and (ii) the owner or person
having control and possession over the motor vehicle is
statutorily obliged to pay the tax in advance irrespective of the
condition of the vehicle for use on the roads, and the liability to
pay tax in advance is not dependent on the quantity of use or
the period during which it was used on the road.
(K. Gopalakrishna Shenoy, CGM, Jagannath Area and Akhil
Gujarat Pravasi V.S. Mahamandal).
(y) The following general tests may be applied to decide whether a
vehicle is a “motor vehicle” within the meaning of Section 2 (28)
of the Motor Vehicle Act. (M/s. Vijaya Traders).
(i) Every vehicle adapted for use upon roads is a motor
vehicle;
(ii) If any vehicle is registered under Chapter VI of the Motor
Vehicle Act, and is required to obtain approvals and
fitness certificates thereunder, it would lead to an
inference that it is a motor vehicle;
(iii) When a vehicle is adapted for use upon roads even though
it is not driven on the public roads or in a public place
and it cannot be driven without obtaining licence – it is
certainly a motor vehicle;
S. 3] Andhra Pradesh Motor Vehicles Taxation Act, 1963 1955

(iv) The word ‘adapted’ in Section 2 (28) of the Motor Vehicle

Act has to be read as ‘suitable for use on the roads’. The
mere fact that they are such which do not move on the
roads by reason of their weight or slow movement, does
not mean that they are not suitable for use on roads.
Whether or not it moves on the roads, if it is suitable to
move on the roads, it is a motor vehicle; and
(v) Merely because a motor vehicle is put to a specific use,
such as being confined to enclosed premises will not
render the same to be a different kind of vehicle. The
steering system, rear lights, direction indicators, rear
view mirror, front screen viper, horns, brakes, parking
brakes etc are some of the factors which may have to be
considered before drawing appropriate inferences.
(z) Rules, made in conformity with the provisions of the parent
statute, form part of the statute and have to be interpreted as
the provisions of the statute. Rule 2 (ca) of the Central Rules
defining “CEV” is to be treated as part of the M.V. Act.
(za) As Section 2 (j) of the Taxation Act, for the purpose of the
definitions of words and expressions used therein, adopts the
meaning assigned to them in the M.V. Act , Rule 2 (ca) of the
Central Rules defining “CEV” shall have to be read into Section
2 (j) of the Taxation Act. “CEVs” are “motor vehicles” within
the meaning of Section 2 (28) of the M.V. Act read with Section 2
(j) of the Taxation Act.
(zb) The provisions of the Motor Vehicle Act have been incorporated
by reference. Any amendment made to the M.V. Act, 1939 or the
M.V. Act , 1988 would have to be read as part of the Taxation
Act by reason of Section 2 (j) thereof.
(zc) Section 2 (j) of the Taxation Act does not bodily lift and
incorporate the dictionary clause or the definition of motor
vehicle as in the Motor Vehicle Act. It only makes a reference
indisputably to the Motor Vehicle Act, 1939. By reason of Section
18 of the Andhra Pradesh General Clauses Act, 1891, the repeal
of the M.V. Act, 1939 does not affect Section 2 (j) of the Taxation
Act and it has to be construed as referring to the M.V. Act, 1988.
Section 2 (j) of the Taxation Act defines ‘motor vehicle’ by
reference, and all relevant amendments to the Motor Vehicle Act,
1988 shall have to be made applicable to the Taxation Act.
1956 Andhra Pradesh Motor Vehicles Taxation Act, 1963 [S. 3

(zd) Mere exclusive use of a motor vehicle within a factory or enclosed

premises would not, by itself, exclude such vehicles from the
levy of tax. It is only when such vehicles are specially adapted
and specially designed, do those vehicles go out of the purview
of the Taxation Act. Even if these vehicles are of “off highway”
capabilities, as they are fitted with rubber tyres or pneumatic
tyres or rubber padded, they are, “motor vehicles” liable to tax.
In case of any doubt the RTA/Transport Commissioner has the
power to determine this question.

(ze) “Dumpers”, “Cranes”, “Road Rollers”, “Excavators”, “Rockers”,

“JCBs” and “Poclains” are CEVs and are liable to tax under the
third proviso to Section 3 (2) of the Taxation Act.

(zf) “JCB” and “Poclain” are names often used to describe a CEV
with multiple capabilities, either as “Excavator” or “Loader”
or “Driller”. They are capable of performing multi-fold functions
depending on the requirements. All of them are fitted with tyres,
and are “Motor vehicles” and fall within the definition of “CEV”
under Rule 2 (ca) of the Central Rules

(zg) If any of the CEVs are designed for use solely in mining industry,
or for agricultural operations, they have to pay life tax, and seek
exemption under Section 10 of the Taxation Act. The owners of
the vehicles, which are designed and are being used solely in
mining and agricultural operations are entitled for refund after
obtaining exemption.

– Khader Basha v. Regional Transport Officer, Chittoor, W.P. No. 173 of 2010
and batch dt. 28-9-2011(DB).

Sec. 3 (1) being an enabling provision to impose tax has to be strictly

construed.—Raj Kumar Khatri v. Deputy Commissioner of Transport, Ananthapur,
2011 (2) ALD 745 : 2011 (3) ALT 423 (DB).

2. Levy of Tax by Government Notification.—Section 3

clearly lays down that tax on motor vehicles is levied and the amount
leviable is also fixed by the Government notification issued in respect of each
class of vehicle.

Section 3 (1) of the Taxation Act is the charging section empowering

the Government by notification to levy tax on other motor vehicles “used
S. 3] Andhra Pradesh Motor Vehicles Taxation Act, 1963 1957

or kept for use in a public place in the State of Andhra Pradesh”. The
classification of the objects of tax, and the measure of tax, is taken care of
by Section 3 (2) and the Schedules. The power of the Government to issue
notification directing the levy of tax is not an absolute power. As per Section
3 (2) of the Taxation Act, the notification shall specify the “class of motor
vehicles on which, the rates for the periods at which, and the date from
which the tax shall be levied”. Thus the Legislature itself has taken care of
(i) the class of motor vehicles; (ii) rates of tax; (iii) the periods at which tax
shall be levied; (iv) the Schedule containing/prescribing the maximum rate
of tax; and (v) the class of motor vehicles on which no tax shall be levied.—
Khader Basha v. Regional Transport Officer, Chittoor, W.P. No. 173 of 2010 and batch
dt. 28-9-2011 (DB).

3. Essential conditions attracting Motor Vehicle Tax. —

(i) There must be a motor vehicle as defined in Sec. 2 (18) of the Motor
Vehicles Act, 1939 (corresponding to Sec. 2 (28) of the new Act, 1988);
(ii) the motor vehicle should have been used or kept for use. Rule
12-A lays down certain rebuttable presumptions for assuming
that a motor vehicle is kept for use;
(iii) such user must be in a public place; and
(iv) such public place must lie in the State of A.P.
For instance, a road roller is a motor vehicle and hence exigible to
motor vehicle tax. (see Goodyear India v. Union of India, AIR 1997 SC 2038 : (1997)
5 SCC 752; Bose Abraham v. State of Kerala, AIR 2001 SC 835 : (2001) 3 SCC 777).
See also Govt. of A.P. v. Road Rollers Owners, (2004) 6 SCC 210 : AIR 2005 SC
1403.

Primarily tax for vehicle has to be paid in Home State. Tax has to be
levied by a State only when the vehicle enters the State. Mere endorsement
authorizing the vehicle to ply in A.P. does not enable A.P. State to levy tax.—
B. N. Rama Krishnaiah v. Dy.Transport Commissioner., R.T.A. Chittoor,
AIR 2007 AP 259 (DB) : 2007 (4) ALD 280 : 2007 (4) ALT 256.

Vehicle registered in the State of Karnataka and owner permanent

resident of Karnataka. Owner visiting Puttaparthy in A.P. State regularly
for his business but without intention to reside there. It does not lead to an
inference that the vehicle is used or kept for use in A.P. The owner obtaining
cell phone connection on his address at Puttaparthy does not help. Demand
notice of Deputy Commissioner of Transport, Ananthapur holding liability
to pay tax is set aside. Bank guarantee and the seized vehicle directed to be
1958 Andhra Pradesh Motor Vehicles Taxation Act, 1963 [S. 3

released.—Raj Kumar Khatri v. Deputy Commissioner of Transport, Ananthapur, 2011

(2) ALD 745 : 2011 (3) ALT 423 (DB).

A vehicle registered in one State it is used or kept for use in another

State attracts tax. In such an event owner is entitled to refund of
proportionate to as provided under the State Law.—Raj Kumar Khatri v. Deputy
Commissioner of Transport, Ananthapur, 2011 (2) ALD 745 : 2011 (3) ALT 423 (DB).

4. Class of vehicles and Rates of Tax.—The Notification (2)

issued under Sec. 3 specifies :—

(i) the class (in some cases sub-clauses also) of motor vehicles
basing on the nature of their user and some other consideration
such as their weight, distance covered, utility;

(ii) the periodicity of payment of tax on each such vehicle, normally

a quarter of an year;

(iii) the rate of tax payable for such periods; and

(iv) the date from which such tax is payable (not earlier than the
date of its publication in the State Gazette).

Similarly there are several notifications issued under Sec. 4 (4) or

Sec. 9(1) which lay down different periodicity or different (concessional) rates
of tax. Each such notification should be treated as dealing with a distinct
‘class’ or ‘sub-class’ of motor vehicle for the purposes of the tax inasmuch as
it has necessarily different features with special conditions expressed or
implied to be satisfied for its application. Here and there the ‘class’ of vehicle
in the Taxation Act may have been described in the same way as the Motor
Vehicles Act. Nevertheless which ‘class’ or sub-class of vehicle attracts which
notification on which item of a notification is determined by the terms and
conditions of such notification and not with reference to what might have
been stated in the Motor Vehicles Act regarding that ‘class’ of vehicles.

Demand notice determining tax liability under Sec. 3 read with

Expl. IV (a) (iii) of G.O.Ms. No. 68 dt. 30-9-2010 at Rs.3675/- P.S.P.Q. for 56
seats for the quarter ending 30-9-2010. Petitioner denied liability under the
provisions set out in the show cause notice, as the vehicle is not plying as a
contract carriage covered by All India Tourist Permit. The Government
Pleader concedes the position that the provision is not applicable. Held, that
the demand notice is unsustainable as there is clear error, both in respect of
S. 3] Andhra Pradesh Motor Vehicles Taxation Act, 1963 1959

the relevant provision as well as the amount of liability so determined.

Demand notice quashed. Authority to issue a fresh show cause notice clearly
specific provision and proceed in accordance with law.—V. Balakrishnan v.
Deputy Transport Commissioner, Chittoor, 2012 (1) ALD (NOC 6).

For various purposes, the Motor Vehicles Act classifies the motor
vehicles into different categories like goods carriage, public service vehicle,
transport vehicle, maxi cab, motor cab, motor cycle etc. When these are dealt
with under Section 3 (1) of the Taxation Act read with the relevant Schedule
thereunder, the rates of tax, the period of tax would also differ. If the tax is
levied on motor vehicles plying for hire for transporting passengers (Entry
4 of the First Schedule) and tax is levied on goods carriages depending on
the laden weight (Entry 3 of the First Schedule), the same does not mean
that it is a tax as is referred to in Entry 56 of the State List. The tax is levied
under Section 3 (1) of the Taxation Act when the motor vehicles are either
used or kept for use for carrying passengers or for carrying goods in the
State. The tax levied under Section 3 (1) of the Taxation Act cannot be treated
as tax on goods. It is indisputably tax on the motor vehicles suitable for use
on roads, which are kept for use or are used in the State of Andhra Pradesh.—
Khader Basha v. Regional Transport Officer, Chittoor, W.P. No. 173 of 2010 and batch
dt. 28-9-2011(DB).

The owners of Rocket Boomer L2Ds (electro hydraulic drilling

machines) are at liberty to approach the jurisdictional Regional Transport
Authority for determination of the question whether or not Rocket Boomers
used for tunneling and drilling works are motor vehicles. On such application
being made the R.T.A., shall, if necessary, consult the manufacturers of those
vehicles or experts in the field of construction equipment and determine the
question as to whether the owners of those vehicles are liable to pay life tax
after getting their vehicles registered under the Motor Vehicle Act.—Khader
Basha v. Regional Transport Officer, Chittoor, W.P. No. 173 of 2010 and batch dt.
28-9-2011(DB).

5. Notified Taxes not to exceed the maximum specified in

the First schedule for each relevant class of vehicle.—In class 4 (vii)
of the First Schedule the maximum leviable on a ‘maxi-cab’ (a type of contract
carriage) is Rs. 1000/- per seat. The legislature was not bound to provide for
it in the First Schedule. However no corresponding ‘class’ appears in
Notification (2) (which is the one that actually levies the tax and not the First
Schedule. The authorities sought to collect tax on maxi cabs at the rate of
Rs. 2500/- per passenger under class 4 (vi) (b), relating to all contract carriages
permitted to carry more than 6 passengers. Such levy contravenes the first
1960 Andhra Pradesh Motor Vehicles Taxation Act, 1963 [S. 3

proviso to Sec. 3 (2) and therefore illegal. In W.P. No. 8456/99 and batch dt.
22-6-1999 the High Court of A.P. quashed the demand notice and directed
the authorities to collect tax at the rate of Rs. 1000/- per seat which is the
maximum laid down in the First Schedule. In this connection it may be noted
that but for the prescription of ‘maxi cab’ as a distinct class in the first
schedule to the Taxation Act, lesser tax than @ Rs. 2500/- could not have been
levied under the Taxation Act inspite of creation of such a ‘class’ in the Motor
Vehicle Act.

6. The levy of Motor Vehicle Tax involves no assessment

and no demand notice is necessary.—In Y. Peda Venkaiah v. R.T.O., Nellore,
AIR 1977 AP 227 (FB) it is said (in para 12) :—

“………….Section 3 of the Act authorises the Government to levy tax

on every motor vehicle used or kept for use in a public place in the
State by means of a notification issued under that section. Section 3
(2) provides that the notification shall specify the class of motor
vehicles on which the rates for the periods at which and the date from
which the tax shall be levied. In view of this provision, the
Government is authorised to levy different rates of tax on different
classes of vehicles and it has accordingly done so. Further, Sec. 4
provides that tax levied shall be levied in advance either quarterly,
half yearly or annually on a licence to be taken out by the owner of
the vehicle. If, therefore, at the beginning of the quarter, the vehicle
belongs to a particular class referred to in that notification tax is levied
on that footing and an entry is also made in the certificate of
registration to that effect. But it does not follow that if the class of
vehicle is changed during the quarter by reason of the use it was put
to, tax cannot be levied according to the class to which the vehicle then
belongs. As soon as the class of vehicle is changed, the rate of tax which applies
to that class according to the notification is automatically attracted. There is no
need for the Act to provide specifically that if there is change in the class of the
vehicle the authorities can levy tax afresh on that vehicle as belonging to that
class. The power contained in Sec. 3 read with Sec. 4 is sufficient to enable the
Government to levy the tax from time to time when the class of vehicle is changed1
(emphasis supplied). The same question was considered elaborately in
S.Venkateswara Rao v. Joint R.T.O., AIR 1971 AP 186 (DB). It was pointed
out that the provisions of the Motor Vehicles Act have no application
in so far as the levy of tax on motor vehicles is concerned. The levy,
payment and recovery of tax are wholly governed by the Motor

1. This ruling of the Full Bench has been overruled by a larger Bench in L. Royal Reddy v.
Govt. of A.P., 2004 (2) ALD 225.
S. 3] Andhra Pradesh Motor Vehicles Taxation Act, 1963 1961

Vehicles Taxation Act. The mere absence of a specific provision in the

Act empowering the authorities to levy tax on any vehicle as a stage
carriage on which tax was paid earlier as contract carriage, does not
make the levy of tax illegal. The provisions of the Act make it clear
that the levy of tax is based on the nature of user of the vehicle. As
the scheme of the Act is that the minimum period for which tax
payable is a quarter, where it is found that a particular vehicle has
been used or kept for use as stage carriage even for a day or part of
quarter, it must be for the purposes of the Act, held as a carriage liable
for tax on that basis. The mere fact that the tax is already paid as a
contract carriage and the operator did not intend to use it as a stage
carriage, would not in any way disentitle the authorities from levying
the tax on such a vehicle as a stage carriage. The learned Judges
followed other decisions of this Court to the same effect which were
referred to in paragraph 17 to 19 of the judgment. We are wholly in
agreement with the decision in S.Venkateswara Rao v. Joint R.T.O.,
Vijayawada so far as this aspect is concerned.”

7. Tax is levied not for violation of conditions of permit

but on the user of a vehicle belonging to a class specified in the
notification issued under Section 3 of the Act. —In a batch of writ
petitions, a Larger Bench of Five learned Judges of the A.P. High Court, in its
majority judgment L. Royal Reddy v. Government of A.P., 2004 (2) ALD 225, struck
down three out of five amendments made in the notification issued under
Sec. 3 in G.O.Ms.No. 77 (Tr-II) dated 01-06-2002, on the following grounds :—

(i) that charging Sec. 3 no where authorises levy of any additional

tax whenever there is any violation of permit or conditions of
permit;

(ii) that unless the charging session authorises or permits levy of

additional tax or charges, which is a penalty, the same cannot
be treated as part of regulatory or compensatory tax;

(iii) that if the interpretation put forth in two full Bench

decisions in Peda Venkaiah’s case, AIR 1977 AP 227 (FB) and
V. Govindarajulu v. Regional Transport Commissioner, AIR 1986 AP 7 :
1985 (2) ALT 230 (FB), is accepted the words “in respect of
vehicles permitted to” used in item 4 of the First Schedule to the
Taxation Act would become meaningless and ineffective;

(iv) that the two Full Bench decisions referred to above did not deal
with the proviso to Sec. 3 of the Taxation Act, 1963, Rule 5 of the
1962 Andhra Pradesh Motor Vehicles Taxation Act, 1963 [S. 3

Taxation Rules and quoted words of item 4 of the First Schedule

to the Taxation Act are no longer good law in view of the ratio
of the decision of the Supreme Court in M. Narasimhaiah’s case,
AIR 1988 SC 240 : 1987 Supp. SCC 452.
Submissions :
(i) It is respectfully submitted that neither the two Full Bench
decisions overruled nor the Supreme Court decision followed
has any bearing on the question before the larger Bench, namely,
the legislative competence of the Government to make the
impugned amendments. Paradoxically the other ratio of the two
full Bench decisions that the provisions of Motor Vehicles Act
are totally irrelevant for the purpose of the Taxation Act has
not been noticed by the larger bench and it erroneously relied
on the same provisions. Further more, another Full Bench
decision in C. Buchaiah Shetty v. R.T.O., AIR 1992 AP 359 (FB) :
1992 (2) An.WR 57, which upheld the levy of additional tax on
breach of conditions of permit has gone unnoticed and, therefore,
still in force. Thus, chaos has been created in the long established
law.
(ii) None of the reasons applies to the amendments invalidated, as
shown below:—
First amendment – para 1 (iii)
There were only two slabs previously — less than 320 km and more
than 320 kms for measuring the tax in respect of non-town service routes
plying as express services attracting tax at Rs. 910/- and 1185/-. By the
amendment the permitted distance is split into three slabs – less than
320 kms, more than 320 kms but less than 1000 kms and more than 1000
kms with tax at 1092, 1442 and 3500/-. The invalidation is not justifiable
because :—
(i) These classes of vehicles squarely fall within those specified in
charging s. 3 and there is no mention of change in the class in
this part of the impugned amendment;
(ii) the highest rate (not additional tax) levied (Rs. 3500/-) is quite
less than Rs. 4000/- specified by the Government in the First
Schedule;
(iii) there is no violation of conditions of permit under the Motor
Vehicles Act for which the increased tax could be said to be
penalty.

Nothing said in either Full Bench decisions of A.P. High Court

overruled or in the Supreme Court decision followed has any bearing on the
S. 3] Andhra Pradesh Motor Vehicles Taxation Act, 1963 1963

amendment invalidated.
On the other hand, the result of the invalidation is that no tax can
now be levied if an express stage carriage covers more than 1000 kms a day.
The argument of the petitioners is that there is no stage carriage, which
is permitted to cover more than 1000 kms a day. This claim has not been
established. Even so, the legislature cannot wait till such a vehicle comes
into being. The law should cater to eventualities likely to occur in future.
The petitioners who are admittedly not running express stage carriages are
not aggrieved by the amendment.

Second amendment – Explanation 3 (ii) of notification issued under Section

3 of the Taxation Act.
All that this explanation does is to increase the distance covered from
320 km to 1000 kms in respect of vehicles plying without a permit.
All the submissions made in respect of the first amendment hold good
here also; with the only exception that now if a vehicle is run without
obtaining a permit no tax can be levied as there is no basis for the
quantification of tax for want of determination of distance covered. This is
contrary to the provisions of Sec. 3 which levies tax on all motor vehicles –
whether covered by permit or not.

Third amendment – Explanation VI (iv) of the same notification.

True, the effect of this amendment is to levy higher rate of tax in the
case of contract carriage ‘misused’ as stage carriage. This explanation was
not there when the two Full Bench decisions (now overruled) were rendered.
Further, according to the majority of the Larger Bench, the two Full Bench
decisions held that the State was competent to collect the tax from the
holders of the stage carriage/contract carriage at higher rate even in the
absence of a specific provision in the Act and in the considered view of the
majority of the Larger Bench the Taxation Act no where provides that vehicle
of a class or a category if used as a vehicle of other class or category can be
subjected to higher tax, when such use is in contravention of conditions of
permit. If so, it is respectfully submitted that it is to rectify the deficiency
that the impugned provision has now been made, which can be declared
invalid only it is beyond the legislative competence of the Government. No
where has this aspect been considered.
With regard to M. Narasimhaiah v. Deputy Commissioner for Transport,
Bangalore, AIR 1988 SC 240 : 1987 Supp. SCC 452, it may be noted that no
new provision of the Taxation Act or legislative competence in relation to
any provision of law arose. The Supreme Court examined the existing law
1964 Andhra Pradesh Motor Vehicles Taxation Act, 1963 [S. 3

and held that it was wrongly invoked by the executive authority. The
Supreme Court did notice the penal provisions of the Motor Vehicles Act,
1988 and advised the authorities to enforce them strictly in cases where, as
in the case before the Supreme Court, no additional tax was leviable or
otherwise.
The word ‘misused’ has led the Hon’ble Court to believe that what
has been levied is a ‘penalty’ for violation of conditions of permit issued under
the Motor Vehicles Act. This belief has no basis. There is no reference in the
impugned amendment to the Motor Vehicles Act and much less to violation
of conditions of permit. Read the entire Motor Vehicles Act and Rules and
you will not find that ‘misuse’ of a vehicle is a violation of any condition of
permit’. In any event the higher levy is made in exercise of powers conferred
by Sec. 3 of the Taxation Act and to link it with any provision of the Motor
Vehicles Act is forbidden (see notes under Sec. 2 above). The expression
“misused” may not be very appropriate but still it is implied in the expression
‘used’ contained in Sec. 3. To label the levy as ‘penalty’ not falling under
‘compensatory tax’ is mere imagination not supported by any pleading or
proof.
It is unfortunate that the majority view of the Larger Bench does not
take into consideration the extent of legislative powers of the State especially
in tax matters and the limited scope of judicial review of tax legislation.
Apart from the authorities relied upon in the solitary dissent by the
learned member of the Larger Bench the following rulings of latest Supreme
Court Judgments are noteworthy—
(i) “On an examination of the provisions of the (Karnataka
Taxation Act (which are similar to those of A.P. Taxation Act),
we find that the principle underlying therein is that it is the
use of the motor vehicle on the given occasion which determines
the category of the motor vehicle, whether it is adapted for that
purpose or not”. Natwar Parikh v. State of Karnataka, (2005) 7 SCC
364 : AIR 2005 SC 3428.
(ii) “………….the taxation is not the subject matter of the Motor
Vehicle Act, 1988. Taxation is governed by the Taxation Act and
the provisions of Secs. 3 and 4 of the Taxation Act have to be
construed on their own force and not with reference to the
provisions under the Motor Vehicle Act, 1988 (ibid).
It is respectfully submitted that the majority view of the Larger Bench
is contrary to the above rulings.

It another case, the Taxation Act of U.P. Act itself provides in Sec. 10
S. 3] Andhra Pradesh Motor Vehicles Taxation Act, 1963 1965

(3) for levy of ‘penalty’ to the extent of 10 times the tax evaded. Upholding
its constitutional validity held :
“In our view, penalty under Sec. 10 (3) of the Act is compensatory. It
is levied for breach of a statutory duty for non-payment of tax under
the Act. Section 10 (3) is enacted to protect the public revenue. It is
enacted as a deterrent for tax evasion…….. The power to impose
penalty is for the purpose of vindicating the main power which is
conferred by the statute in question……..” (Para 15 of State of U.P. v.
Sukhpal Singh, (2005) 7 SCC 615 : AIR 2005 SC 3324).
It is submitted that the impugned provisions of the A.P. Notification
under scrutiny of the Larger Bench do not levy any ‘penalty’ at all. They
indicate “measure of tax” in relation to vehicles used in a particular manner.
The above ruling of the Supreme Court, therefore applies to the impugned
provisions with much greater force. Regarding the “measure of tax’ the
Supreme Court lays down that ‘life time tax leviable in one lumpsum in
advance on four wheelers on the basis of the index of ‘weight-cum-value does
not case to be compensatory in nature and that the levy based on rational
and reasonable classification and, therefore, valid.—State of Tamil Nadu v.
M. Krishnappan, AIR 2005 SC 2168 : (2005) 4 SCC 53.
In another case the Apex Court held :
“the above classification indicates a measure or a rate of tax applied
differently on different vehicles depending upon various circumstances
and so long as there is competence to levy and collect the tax under
Entry 57, List II of the Seventh Schedule to the Constitution, the levy
cannot be struck down only on the ground that the incidence of the
tax falls differently on different categories of the vehicles …………..How
equitable such tax could fall on different persons is not for the Court
to decide”.
It is respectfully submitted that the solitary dissent expressed in the
decision in L. Royal Reddy v. Government of A.P., AIR 2004 AP 347 : 2004 (2) ALD
225 (LB) : 2004 (2) ALT 210, has correctly taken into consideration all the
Supreme Court rulings and, therefore, preferable over the majority view
which is per incuriam.
8. Tax escaped by mistake on the part of the Licensing
Officer can also be collected later .—See B. Mandeswara Rao v. R.T.O., 1971
ALT 310 (DB).
9. The role of a Licensing Officer.—The State Government has
appointed “Licensing Officers” (Notification (1)) “for the purposes of this Act”
(Sec. 2 (e). Under Rule 3, his duty is to make an entry in the certificate of
registration in respect of a motor vehicle indicating the amount of tax payable
1966 Andhra Pradesh Motor Vehicles Taxation Act, 1963 [S. 3

every quarter in the light of the owner’s declaration as to the class of the
motor vehicle as specified in the relevant notification. Until a different
declaration is made under Rule 5 the class of the vehicle continues to be the
same during the quarters that follow. Again, it is this “class” of vehicle and
the amount of tax that are noted in the tax licence issued under Section 4.
10. Duty of the tax payer.—Rule 5 caters to the cases where in
respect of any motor vehicle (for which the tax has already been paid) higher
rate of tax becomes payable during the quarter on account of :—
(i) any alteration made to a motor vehicle, such as increase in the
operational distance of a stage carriage or increase in the laden
weight of a goods vehicle; or
(ii) proposal to change the category of use of vehicle.
In all such cases Rule 5 makes it incumbent on the tax payer himself
to file a declaration in Form No. 4 together with the certificate of registration
and evidence of the payment of the additional amount of tax payable. Here
again no assessment or demand notice is necessary.
In some cases, however, where the tax-payer disputes existence of
“facts” bringing a motor vehicle under a particular “class” of taxation, Courts
have insisted that an enquiry should be made and the Licensing Officer
should give a “finding” regarding the existence of such facts (in accordance
with the principles of natural justice). Where such a finding of fact goes
against the tax payer the consequential liability to pay the required tax is
statutory but not one “created” by any demand notice by the licensing officer.
This position is left in no doubt by the Full Bench in its judgment extracted
in Note 5 above.
11. Tax on Construction Equipment Vehicle.—Definition of motor
vehicle as defined in Sec. 2(28) of M.V. Act is incorporated in Sec. 2(j) of the
Act. “Construction Equipment Vehicle” (CEV) is not defined in M.V. Act but
defined in Rule 2(ca) of the Central Motor Vehicles Rules, which are in
conformity with the M.V. Act. As such Construction Equipment Vehicle
defined under Rule 2(ca) has to be treated as part of the M.V. Act. Such being
the case Rule 2(ca) of M.V. Rules defining Construction Equipment Vehicles
shall have to be read into Sec. 2(j) of the A.P. Motor Vehicles Taxation Act.
Construction Equipment Vehicle are therefore motor vehicles within the
meaning of Sec. 2(j) of the A.P. Motor Vehicles Taxation Act.—Khader Basha v.
Regional Transport Officer, Chittoor, 2013 (3) ALD 416 : 2012 (6) ALT 660 (DB).
12. Section 3(1) and (2), Third proviso as amended by Act of
2010.—Challenged on grounds of unreasonability for imposing repeated life
tax, imposing levy of life tax as such on Construction Equipment Vehicles
in mining industry, levy on cost of vehicle and the vehicles being used for
off-highway activity. Held as not unreasonable or objectionable restrictive
S. 3A] Andhra Pradesh Motor Vehicles Taxation Act, 1963 1967

regulation as the owner can seek refund of life tax amount, the mining
operators can seek refund of life tax on CEV after obtaining exemption from
competent authority, various rates of life tax have been prescribed keeping
in view age of the vehicle, inflation, rising cost of material. Liability to pay
tax in advance is not dependent on quantity of use or period during which
it was used on road. Plea of unreasonableness rejected. Not violative of Arts.
14 and 19(1)(g) of the Constitution.—Khader Basha v. Regional Transport Officer,
Chittoor, 2013 (3) ALD 416 : 2012 (6) ALT 660 (DB).

13. Levy of life tax on non-transport personal vehicles.—It is only

when the vehicle registered in other State enters into the State of A.P. In
A.P./Telangana for purpose of entering its rolls by way of change of address
or transfer of ownership is required to pay tax specified in the Sixth Schedule.
For the vehicle kept in the State for period less than 12 months entries in
the First Schedule is attracted and not Sixth Schedule.—Greeda Sudhasini J v.
Government of Telangana, 2014 (5) ALD 429 : 2014 (5) ALT 417.
1
[3-A. Levy of additional tax on vehicles misused.2—
(1) Notwithstanding anything contained in Section 3, it shall be
competent for the Government to provide for levying an additional
tax in respect of a motor vehicle specified in one category or class
notified under Section 3, if misused or used not in accordance with
the purpose for which the vehicle was registered, or the permit was
granted, attracting higher rate of tax as a vehicle falling in another
category or class :
Provided that the additional tax so levied shall be a sum equal
to the difference of amount between the tax already levied and
collected and the tax, which shall be leviable in respect of such
vehicle falling in another category.
(2) The registered owner or the person who is in possession
or control of such vehicle misused or used not in accordance with
the purpose for which the vehicle was registered or the permit was
granted, shall pay the additional tax so levied under sub-section (1)].
NOTES
Insertion of Section 3-A is within the legislative competence of State.
It has to be understood as regulatory under List II- Entry 57. It is not
punitive in nature as contemplated under List – III Entry 35 of the VII

1. Added by Act 33 of 2006, w.e.f. 01-06-2002.

2. See Rule 6-A.
1968 Andhra Pradesh Motor Vehicles Taxation Act, 1963 [S. 3B

Schedule of the Constitution of India. There is no need to obtain the assent

of the President of India. As per the Larger Bench decision in L. Royal Reddy
v. Government of A.P., AIR 2004 AP 347 : 2004 (2) ALD 225 (LB) : 2004 (2) ALT
210, the section is introduced to fill the gap of power and enable to levy
additional tax as contemplated under the section in cases where the vehicle
is misused or not used for the purpose for which permit is granted. The
section is not ultra vires the Constitution.—K. Srinivas v. Government of A.P.,
2008 (4) ALT 53 (DB).
Absence of provision for appeal against order under the section does
not hit the legality of the section.—K. Srinivas v. Government of A.P., 2008 (4)
ALT 53 (DB).
Party aggrieved by the order under the section can seek relief in High
Court under Art. 226 of the Constitution.—K. Srinivas v. Government of A.P.,
2008 (4) ALT 53 (DB).
G.O.Ms. No. 180 dated 27-9-2006 is ultra vires the Section 3-A of the
Act. Where a vehicle is misused into another category than permitted,
additional tax by way of the difference between the tax already levied and
the tax leviable for the category under which the vehicle is used is to be
levied.—K. Srinivas v. Government of A.P., 2008 (4) ALT 53 (DB).
Additional tax must be adjudicated by an authority. Absence of such
machinery to be declared by law. No additional tax to be levied and collected
till such machinery is declared by law.—K. Srinivas v. Government of A.P., 2008
(4) ALT 53 (DB).
Explanation to a provision is not a substantive provision, not to be
construed as to widen the ambit of the section, but to harmonise with the
section. It is meant to explain any ambiguities.— K. Srinivas v. Government of
A.P., 2008 (4) ALT 53 (DB).
Section 3-A (1) restricts additional leviable tax.—K.Srinivas v. Government
of A.P., 2008 (4) ALT 53 (DB).
Taxing enactment demands strict interpretation, cannot be stretched
against the tax payer. K. Srinivas v. Government of A.P., 2008 (4) ALT 53 (DB).
Imposition of tax has three stages – declaration of liability, assessment,
method of recovery. Entire process must be authorized by law.—K. Srinivas
v. Government of A.P., 2008 (4) ALT 53 (DB).

1
[3-B Levy of Green Tax.—There shall be levied and collected
an additional tax called “Green Tax” in addition to the tax levied

1. Added by Act 33 of 2006, w.e.f. 25-05-2006.

S. 4] Andhra Pradesh Motor Vehicles Taxation Act, 1963 1969

under Section 3, on the motor vehicles suitable for use on roads for
the purpose of implementation of various measures to control air
pollution in such manner to such categories, such amounts as may
be notified :1

Provided that the rates of tax shall not exceed the maximum
specified in the Fifth Schedule].

4. Payment of tax and grant of licence.—(1) (a) The tax

levied under this Act shall be paid in advance and in the manner
specified in Section 11, by the registered owner of the motor vehicle
or any other person having possession or control thereof, at his
choice, either quarterly, half-yearly or annually on a licence to be
taken out by him for that quarter, half-year, or year, within fifteen
days from the commencement of the quarter, half-year or year as
the case may be.2 Tax for a half yearly licence shall not exceed twice,
and tax for an annual licence shall not exceed four times, the tax
for a quarterly licence. The Government may grant such rebate as
may be prescribed in case of half-yearly and annual licences.
3
[(aa) Notwithstanding anything in clause (a), the tax levied
under the second proviso to sub-section (2) of Section 3 shall be for
the life time of the motor vehicle and shall be paid in advance in
lumpsum by the registered owner of the motor vehicle or any other
person having possession or control thereof :

Provided that if the tax in respect of the motor vehicles referred

to in the second proviso to sub-section (2) of Section 3 has already
been paid under sub-section (2) of Section 3 prior to the 1st April,
1987 the tax specified under the aforesaid second proviso shall be
levied after expiry of the period for which the tax was so paid and
such tax shall be paid within one month from the date of the expiry
of the said period].

1. See Notification III “Levy of Green Tax”

2. See Rules 5, 6, 12-B and 14.
3. Inserted by Sec. 3 of Act No.15 of 1987.
1970 Andhra Pradesh Motor Vehicles Taxation Act, 1963 [S. 4

(b) Where the tax for any motor vehicle has been paid for
any quarter, half-year or year and the motor vehicle has not been
used during the whole of that quarter, half-year or year or a
continuous part thereof not being less than one month, a refund of
the tax at such rates as may, from time to time, be notified1 by the
Government, shall be payable subject to such conditions as may be
specified in such notification.
2
[(bb) Notwithstanding anything in clause (b), where
lumpsum tax has been paid as specified in clause (aa) a refund of
the tax at such rates as may be from time to time be notified by the
Government, shall be payable subject to such conditions as may be
specified in the notification in the case of removal of the vehicle to
any other State on transfer of ownership or change of address].

(2) Notwithstanding anything in sub-section (i), no person

shall be liable to pay tax in respect of a motor vehicle for a particular
period, if the tax due in respect of that motor vehicle for that period
has already been paid by some other person.

(3) (a) Where a tax in respect of a motor vehicle is paid

by any person for a particular period or if no such tax is payable
3
therefor, the licensing officer shall :—

(i) grant to such person a licence, in such form as may be

notified by the Government, to use the motor vehicle in
any public place in the State during the said period; and

(ii) record in the certificate of registration in respect of the

motor vehicle for which such certificate is granted under
the Motor Vehicles Act, if no such certificate of registration
is granted in respect of a motor vehicle, in a certificate in

1. See Notifications IV Sl. No. (1) to (5).

2. Inserted by Sec. 3 of Act No. 15 of 1987. See Rule 7.
3. See Rule 7.
S. 4] Andhra Pradesh Motor Vehicles Taxation Act, 1963 1971

such form as may be notified1 by the Government, that

the tax has been paid or that no tax is payable, in respect
of the motor vehicle for the said period :2
3
[Provided that where a lumpsum tax is payable under this
Act, payment of such tax by any person shall be recorded in the
certificate of registration and no licence shall be granted to such
person].
(b) Every licence granted under clause (a) of this sub-section
shall be valid throughout the State.

(4) Notwithstanding anything in Section 3 or sub-section (1),

the Government may, by notification4 from time to time, direct that
a temporary licence for a period not exceeding thirty days at a time
may be issued in respect of a motor vehicle any class on payment
of such tax, and subject to such conditions as may be specified in
such notification :

Provided that the rate of tax shall not exceed the maxima
specified in columns (2) and (3) of the Second Schedule in respect
of the classes of motor vehicles fitted with pneumatic tyres specified
in the corresponding entry in column (1) thereof, and one and a half
times the said maxima in respect of such classes of motor vehicles
as are fitted with non-pneumatic tyres.

(5) No motor vehicle shall be used in any public place in the

State at any time after the issue of a notification under sub-section
(1) of Section 3, unless a licence permitting its use during such time
has been obtained as specified in clause (a) of sub-section (1) or sub-
section (4)].5

1. See Notifications under V Sl. No. (1).

2. See Rules 3, 4, 5, 6 and 14.
3. Added by Sec. 3 of Act No.15 of 1987. See Notifications VI.
4. See Notification VI.
5. See Rules 11.
1972 Andhra Pradesh Motor Vehicles Taxation Act, 1963 [S. 4

NOTES
A. PROCEDURE OF PAYMENT OF TAX

1. Payment of tax in advance.—Section 4 (1) in no ambiguous

terms lays down that the tax levied under the Act shall be paid “in advance”,
that is, in advance of using the motor vehicle. Thus whenever the vehicle is
in existence and is intended to be used from the beginning of the quarter
(half year or year) the liability to pay tax arises before the beginning of that
quarter (half year or year). It is a different matter that a grace period of 15
days (under the section) extended to one month (Notification 30) from the
commencement of the quarter (half year or year) is allowed for actual
payment of the tax, only for the purpose of avoiding penalty under Sec. 6.
Even, if the vehicle is intended to be used somewhere from the second month
(or the third month) of a quarter, the liability arises at the same time as
aforesaid, but, by virtue of notification (40), only a proportionate tax is
payable just before the point of time of its actual user in the second month
(or the third month) without any grace period for actual payment of such
tax. It may be noted that even where reduced tax is paid under Notification
(40), for a month or two, the ‘licence’ necessarily to be obtained and displayed
under Secs. 4 and 5 is the same as prescribed for a quarter, half year or year
under Sec. 4 (3) (a) (i).

Rule 5 reiterates the rule of “advance payment”. According to

explanation (ii) to Rule 5, omission to make advance declaration and
payment of the additional tax that has since became due, the benefit of the
reduced tax proportionate to the length of the period is not available.
In Peda Venkaiah, AIR 1977 AP 227 (FB), though Rule 5 was not noticed,
the rule of advance payment was recognised with reference to
Notification issued under Sec. 9 (1), corresponding to the present Notification
No. 40.
Rule 6 directs that the tax in respect of a motor vehicle purchased at
any time within the quarter shall be paid in advance at the time of the
registration of the vehicle under the Motor Vehicles Act. Formerly, a grace
period of three days was allowed in respect of such vehicles but this
concession was withdrawn from 28-2-1970.

Even in the case of motor vehicles of any other State entering the State
of A.P., advance payment of tax is insisted upon in Rule 14. Thus “advance
payment” of tax due is the invariable rule, the only exception being the
payment at the beginning of the quarter (half year or year) as provided in
Notification (30).
S. 4] Andhra Pradesh Motor Vehicles Taxation Act, 1963 1973

The Table below shows the date when the tax becomes ‘due’ (payable)
in different situations—

Situation Date of payment

1 2
1. When the vehicle used or kept for 1. On or before the 15th day of the
use is already in existence at the commencement of the quarter.
commencement of a quarter. Section 4 (1) (a).
(Also see notification IX Sl. No. 1).

2. When the vehicle comes into exis- 2. “In advance” (as required by
tence during the course of a section 4) of putting it to use.
quarter. (Rule 6).

3. When the vehicle is brought into 3. “While entering into this State”
the State of Andhra Pradesh from of Andhra Pradesh from outside.
outside. (Rule-14)

4. When the vehicle for which tax is 4. The difference in tax is to be paid
paid undergoes an alteration or is in advance of using it in the
used in manner attracting a higher altered condition or in the
rate of tax. different manner (Rule-5).

5. When the vehicle is used or kept 5. “In advance” of such user, in the
for use after expiry of the first second or third month
month of a quarter. (Notification No. IX Sl.No. 11)

6. When, after payment of tax for a 6. After adjustment of the yearly or

year or a half -year, increased rates Half-yearly tax already paid
of tax are notified. against one or two quarters, the
remaining quarters will be
treated as ones for which the tax
has not been paid. That is to say,
the tax has to be paid within the
grace period of such quarters.
(See Rule 12-B)

CASE LAW

Section 4 (1) mandates that the tax shall be paid in advance in the
manner specified in Section 11. Sub-section (4) thereof enables the
Government to direct the issue of temporary licence for a period not exceeding
30 days on payment of tax not exceeding the maximum specified in the
1974 Andhra Pradesh Motor Vehicles Taxation Act, 1963 [S. 4

Second Schedule.—Khader Basha v. Regional Transport Officer, Chittoor, W.P. No.

173 of 2010 and batch dt. 28-9-2011(DB).

2. Manner of payment of Tax.—Payment every amount due

under this Act is made by producing before the licensing officer a demand
draft obtained from any scheduled bank. Some other manner may also be
prescribed (See Sec. 11). Rules 13-B, 14 or 14-A provide for special mode of
payment.

3. Tax licence to be taken out.—Section 4 (1) mandates that

on payment of the required amount of tax a licence (in the prescribed form)
must be obtained which specifies not only the period for which the tax has
been paid, but also the “class” of the vehicle for which the tax has been paid
together with the amount of tax paid. Similar licence should be obtained
when a vehicle is exempted wholly or partially from payment of tax or in
respect of vehicles, which are not registered or deemed to be registered.
(Notification V).

4. Great significance of the tax token.—Sub-section (5) of Sec.

4 ordains that no motor vehicle shall be used in any public place in the State
at any time unless a licence permitting its use during such time has been
obtained. The display of the licence on the motor vehicle is also made
compulsory, in Sec. 5, on the pain of fine of Rs. 50/-. Certain officers are
empowered to stop any motor vehicle and satisfy themselves that a licence
has been “duly obtained” in respect of such motor vehicle. Failure to stop
such vehicle also entails a fine of Rs. 50/-. Rule 11 prohibits alteration of
licences and directs duplicate licences to be taken when necessary. All this
is intended to ensure that every motor vehicle is “permitted” to be used under
the Motor Vehicles Taxation Act, 1963 (not under the Motor Vehicles Act or
any other law) as belonging to a particular “class” of vehicle – the class being
the one specified in the notifications issued under Secs. 3, 4 (4) or Sec. 9. Thus
it should be borne in mind that in order to determine whether a motor
vehicle is “permitted” to be used under the provision of the Motor Vehicles
Taxation Act, it is the “licence” issued under the Motor Vehicles Act that
should be examined. Similarly the “conditions” that are relevant for the
purposes of the Taxation Act are those that are specified in (or inferred from)
the notifications under which the “licence” under such Act has been issued
and not those that are attached to the “permit” that may have been issued
under the Motor Vehicles Act. In fact a vast majority of vehicles that are
used on roads do not require any “permit” at all under the Motor Vehicles
Act. Does this mean that such class of motor vehicles can be used without
S. 4] Andhra Pradesh Motor Vehicles Taxation Act, 1963 1975

any “conditions”. It is the omission to observe the distinction between

“licence” and “permit” and between the respective “conditions” thereof that
has done great damage and injustice to the A.P. Motor Vehicles Taxation Act.
True, a few notifications, administrative instructions and even ‘orders’ passed
by the authorities refer to permit conditions. It is unfortunate.

5. Short-term Licences.—Sub-section (4) of Sec. 4 provides for

‘short-term licence’ for periods not exceeding 30 days – as an exception to
sub-section (1) which prescribes a quarter a half year or an year as a unit of
time for payment of the tax. The maximum rates of tax for such short periods
are laid down in the second schedule to the Act. At present, there is only one
notification (Notification No. 18) issued by the Government under Sec. 4 (4)
which relates to short term licences and rates of tax in respect of goods
vehicle and motor cabs of States other than Karnataka. Almost similar
provisions are made in respect of goods vehicles of Karnataka but in this
case the notification is issued under Sec. 9 (1), and not under Sec. 4 (4), for no
understandable reason. There are a few more notification issued under
Section 9 (1) even though they relate to periods shorter than 30 days. Strictly
their proper place is under Sec. 4 (4) so that the tax prescribed does not exceed
the limits laid down in the Second Schedule to the Act. The confusion about
the scope of Sec. 4 (4) and Sec. 9 (1) is resolved by a Full Bench (in Buchaiah
Shetty v. R.T.A., 1992 (2) An. WR 57 : AIR 1992 AP 359 (FB) by observing :

“We have already held that Sec. 9 of the Taxation Act, is a general
provision and sub-section (4) of Sec. 4 of the said Act is a special one.
So long as a provision is made in the notification issued under the
general provision of Sec. 9, no notification can be given under sub-
section (4) of Sec. 4 of the Taxation Act. Whether a notification was
under Sec. 9 (1) or under Sec. 4 (4) of the Taxation Act, the result sought
to be achieved was one and the same i.e. subjecting the particular class
of vehicles to pay the concessional rate of tax because of the temporary
nature of permits for shorter periods not exceeding 30 days……….”.

In the light of the above elucidation, notification Nos. 19 to 27, though

issued under Sec. 9 (1), the result sought to be achieved by them is the same
as contemplated by a notification under Sec. 4 (4).

It is submitted that Sec. 9 (1) comes into play when the tax is payable
for the entire quarter (unless exempted) but when the Government proposes
to grant an exemption, reduction or other modification in the RATE OF TAX
whereas Sec. 4 (4) takes care of situations where the motor vehicle is intended
to be used for PERIODS SHORTER than 30 days and therefore the levy of
1976 Andhra Pradesh Motor Vehicles Taxation Act, 1963 [S. 4

“quarterly” rate of tax is not warranted. The amount of tax if prescribed for
use of any class of vehicles for periods shorter than 30 days should not exceed
the limits prescribed in the Second Schedule, whereas the rates of tax
prescribed in notifications issued under Sec. 3 or Sec. 9 (1) should not exceed
the limits prescribed in the First Schedule.

6. Consequences of violation of conditions of short term

licences whether issued under Sec. 4 (4) or Sec. 9 (1).—The first
consequence1 is that the vehicles plying on payment of concessional rate of
tax are liable to pay the full quarterly tax as specified in the notification issued
under Sec. 3 (1) of the A.P. Motor Vehicle Taxation Act in the event of violation
of the conditions of the notification (issued under Sec. 4 (4) or Sec. 9 (1)) under
which the concessional rate has been availed of. This proposition of law has
been affirmed in Peda Venkaiah, AIR 1977 AP 227 (FB), as already seen, which
is reaffirmed in C. Buchaiah Shetty v. R.T.O., 1992 (2) An. WR 57; RSK
Padmanabham v. R.T.A., AIR 1992 AP 359 (FB) (in para 22) :

“The vehicles plying on special permits on payment of concessional

rate of tax as specified in the notification issued under Sec. 9 (1) of the
Taxation Act are liable to pay the full quarterly tax as specified in the
notification issued under Sec. 3 (1) of the Taxation Act if they violate
the conditions of the said permit”.

7. Validity of condition No. VII of Notification No. 25.—

The Notification No. 25 (G.O.Ms.No. 100 dt. 20-5-1999) or the corresponding
one (G.O.Ms.No. 735 dt. 12-8-1983) that was considered by the above said
Full Bench relate to the same class of vehicle: “contract carriages plying on
the strength of special permits issued under Sec. 63 (6) (old) or Sec. 88 (6)
(new) M.V. Act” and both of them contain an almost identical condition (vii)
: “Violation of any of the conditions specified above will entail in levy of full
quarterly tax (applicable to State wide contract carriages).”

The full quarterly tax is what is laid down in the notification issued
under Sec. 3 (1) (Notification No. 2) against item 4 (vi) (b) (the then or the
present one) except that the rate then was Rs.300/- and now it is Rs.2500/-.
Since the Full Bench above categorically held that the violation of condition
(vii) of the notification (No. 25) results in the levy of full quarterly tax (at the
then prevailing rate of Rs.300/- prescribed for class 4 (vi) (b)) it is clear that
if a similar situation now arises, the full quarterly rate of tax is Rs. 2500/-
(the present rate prescribed for the same class 4 (vi) (b).

1. (The Second consequence in “penalty” - See notes under section 6).

S. 4] Andhra Pradesh Motor Vehicles Taxation Act, 1963 1977

But, unfortunately, a different view is taken in Md. Nawab v. Licensing

Officer and Secretary, R.T.A, 1999 (4) ALT 614 : 1999 (5) ALD 69 (DB), in this case
the petitioners, having obtained special permits and accordingly having paid
“short term” tax (under Notification 25) allegedly used them as stage
carriages. The licensing officer, following the firmly established law and
moreover the law laid down in condition (vii) of the very notification subject
to which petitioners were given the “short term” licences demanded the full
quarterly tax @ Rs. 2500/-. This was questioned and the Hon’ble Division
Bench accepted the contention of the petitioners that they ran their contract
carriages with limited halts and therefore the tax leviable, if at all, was at
Rs. 1185/- prescribed for vehicles falling under class 4 (v) A of Notification
(2), applicable to express stage carriages (running without permit) and
without payment of tax.1 The Hon’ble Court further declared that condition
(vii) invoked by the authorities was ultra vires and invalid inasmuch as it
results in the levy of tax in excess of the one prescribed for express stage
carriage which was not permissible under Sec. 9 (1).

It is respectfully submitted that neither in the Motor Vehicle Act nor

in the Taxation Act is there a class called “contract carriages running on
permits with limited halts”. Contract carriages and “halts” are incongruous
to each other. At any rate, equating an imaginary “contract carriage with
limited halts” to the statutory class of “stage carriages or express services”
is without any basis, and contrary to all accepted principles of interpretation
of fiscal statutes which exclude all imaginary, presumptive or compassionate
considerations.

The only justification for the view taken by the Hon’ble Division Bench
is rested on a further assumption that Peda Venkaiah, AIR 1977 AP 227 (FB)
laid down an inviolable law that whenever a contract carriage covered by
such permit and having paid the tax on that basis is subsequently found
plying as a stage carriage the tax leviable is as on stage carriage alone
notwithstanding the rates of tax applicable to each. Here, it may be noted
that under Sec. 3, a motor vehicle is also taxed in whatever class it is “kept
for use” (on the basis of the permit granted) even if it is not actually used,
much less in a different category. The principle obviously inherent in the
two Full Bench decisions is expressly laid down in Rule 5 which comes into
play only when an additional amount of tax payable on account of a proposal

1. The petitioners neither sought for nor held permits authorising them to use their
vehicles as express stage carriages. This is not possible in A.P. where stage carriage
services are nationalised. The permits actually granted did not authorise any “halts”.
Mere description of places to be visited is not tantamount to authorising “halts”.
1978 Andhra Pradesh Motor Vehicles Taxation Act, 1963 [S. 4

to change the category of use of vehicles. The benefit conferred by the rule
(or a similar notification) is proclaimed to be available only if a prior
declaration is filed regarding the change in use and advance payment of
additional tax. This rule is illustrated in APSRTC v. Government of A.P., 1995
(1) ALT 432 : 1995 (1) LS 67 (DB).

Facts : The APSRTC was granted a permit to run a stage carriage as

an express service but actually plied as ordinary service after paying lesser
amount of tax applicable to such ordinary service. The Licensing Officer
demanded Rs. 5060/- towards difference of tax and Rs. 3795/- towards
penalty.
In the High Court the RTC contended (just as in the case of Md. Nawab
above), on the authority of Peda Venkaiah, AIR 1977 AP 227 that the sole
criterion for levying tax was user of the vehicle and inasmuch as the vehicle
in question was used only as an ordinary service, levy of tax and penalty
treating the same as express is impermissible in law.

The Hon’ble Court after examining the relevant provisions of law,

especially Rule 5, and explaining the scope of the Full Bench Decision rejected
the contention, holding :

“the Corporation, having obtained permission for plying the vehicle

as express service, cannot unilaterally convert the same into an ordinary
service without getting the change of user approved by the concerned
authorities in the manner specified in Rule 5”.

Reverting to Mohd. Nawab, 1999 (4) ALT 614 (DB), the judgment not
having taken note of Rule 5 and the forgoing decision in APSRTC’s case is per
incuriam. The ratio of APSRTC’s case is preferable being based on correct
interpretation of law and the same full bench decision. It is further submitted
that notification 25 since substituted by G.O.Ms. No. 100 dt. 20-5-1999
(subsequent to Mohd. Nawab) retains condition (vii), which was already acted
upon in C. Buchaiah Shetty (FB) it has its full legal force. However, Notification
25 is superseded in G.O.Ms. No. 152 (Tr-II) dated 01-12-2000.

The paradox in Mohd. Nawab is that what an operator cannot do

directly and legitimately, he is enabled to do indirectly and illegally and still
boldly to acknowledge his defiance of law in a Court of law and to derive a
benefit out of his illicit business.

8. Correct course in the event of intervening change of

‘class’ of vehicle.—After the payment of the tax at the beginning of the
quarter the owner may have to change the ‘class’ of vehicle in two ways :—
S. 4] Andhra Pradesh Motor Vehicles Taxation Act, 1963 1979

(i) in the first case, the proposed user may attract a higher rate of
tax. If so, he should, as required by Rule 5, file a prior declaration with the
licensing officer together with the additional tax. Then he would derive the
benefit of proportionate tax and avoid penalty; otherwise, the full quarterly
tax becomes payable with penalty;

(ii) in the second case, the proposed user may entitle him to lower
rate of tax. If so, Notification 9 (which is self-explanatory) comes to his aid.
It is, however, inherent in it that a prior declaration of the changed user must
be filed to enable the authorities watch and prevent its misuse. Otherwise,
there is no refund of the tax already paid, or if the tax is still payable it is as
endorsed in the Registration certificate, with penalty.

Rule.— Whatever you do with your vehicle, under the Taxation Act,
do it after declaration and payment of tax due in advance.

(iii) A third eventuality may arise. The owner might have, say,
overloaded his stage carriage. Such ‘breach of condition of permit’ does not
take away the class of the stage carriage and bring it under a different sub-
class of stage carriage, much less under a different category altogether (for
instance as a contract carriage). No further tax liability. Consequences under
the Motor Vehicle Act, the Taxation Act is not concerned with. Or, a ‘motor
cab’ may have been used for the owner’s private purpose during the whole
of a quarter or year without prior declaration. The tax already paid as on
‘motor cab’ is adequate to cover the changed user. No further tax liability.
Once again, the consequences under the Motor Vehicles Act (for violation of
permit condition) are irrelevant.

B. REFUND OF TAX
Section 4 (1) (b) provides for refund of tax paid if a motor vehicle has
not been used in the whole or any part of any quarter, the period of non-
user being not less than a calender month. Notification (7) is the relevant
notification. On the basis of the similar principles, Notifications (5) (6), (8),
(9) and (10) are issued.

Conditions for refund.—If all or any of the following conditions are

not satisfied, refund cannot be made :—

(1) Along with the report of non-user, the tax licence and the
certificate or registration must be surrendered within five days from the
commencement of the relevant quarter or the calender month. (W. A. No.
567/72 dt. 13-8-1973 (DB)).
1980 Andhra Pradesh Motor Vehicles Taxation Act, 1963 [S. 5

(2) No refund of tax which was paid after detection of its non-
payment. However, the refund may be payable if the Licensing Officer is
satisfied that special circumstances warrant such refund. (W. P. No. 1182/76
dt. 04-08-1977).

(3) The question of refund arises only when the tax due is paid first.
Where, for instance, the vehicle is used in the first month, tax should be paid
for the entire quarter first and then refund claimed, if eligible. (D.T.C., Guntur
v. K.M. Abdul Lateef, 1973 (2) APLJ 48 (SN).

(4) Rule 12-A has no direct bearing on the refund of tax (as held in
the same case as above).

It cannot be said that these conditions are unreasonable and have no

relation to the object sought to be achieved. 1978 APHN 88.

5. Display of licence on the motor vehicle and duty to

stop it on demand by certain officers.—(1) (a) No motor vehicle
shall be used in any public place, unless the licence granted in respect
thereof under clause (a) of sub-section (3), of Section 4, or under sub-
section (4) of that section, is displayed on the motor vehicle in such
manner as may be notified by the Government.

(b) If the licence is not so displayed on the motor vehicle, the

registered owner or the person having possession or control thereof
shall be punishable with fine which may extend to fifty rupees.

(2) (a) Any Officer of the Transport Department not below

such rank as may be notified1 or any Police Officer in uniform not
below the rank of a Sub-Inspector, or such other officer as may be
prescribed,2 may require the driver of any motor vehicle in any
public place to stop that motor vehicle and cause it to remain
stationary so long as may reasonably be necessary for the purpose
of satisfying himself that a licence has been duly obtained in respect
of such motor vehicle.

1. See Notification No. V Sl. No. (3).

2. See Rule 9.
S. 6] Andhra Pradesh Motor Vehicles Taxation Act, 1963 1981

(b) Any person who wilfully fails to stop a motor vehicle

when required to do so by an officer under clause (a) of this sub-
section or resists such officer, shall be punishable with fine which
may extend to fifty rupees.

6. Penalty for failure to pay tax.—If the tax due in

respect of any motor vehicle has not been paid as specified in
Section 4, the registered owner or the person having the possession
or control thereof shall, in addition to payment of the tax due be
liable to penalty which may extend to twice the quarterly tax in
respect of the vehicle, to be levied by such officer, by order in writing
and in such manner as may be prescribed :1
2
[Provided that if the lumpsum tax under this Act has not been
paid, the registered owner or the person having possession or control
thereof shall, in addition to payment of the tax due, be liable to
penalty which may extend to twice the lumpsum tax payable under
clause (aa) of sub-section (1) of Section 4].
NOTES

1. Conditions precedent for levying penalty. —Section 6

read with Rule 12 lays down—
(i) if the tax due in respect of any motor vehicle has not been
paid;
(ii) as specified in Sec. 4 of the Act;
the owner shall be liable to pay;
(iii) the arrears of tax due;
(iv) together with any penalty that may be imposed by the Licensing
Officer.
Rule 13 reiterates the same liability with greater emphasis by saying
that the Licensing Officer SHALL impose the penalty under Sec. 6 of the Act
as specified in the table “not exceeding” certain limits.

1. See Rule 13.

2. Added by Act 15 of 1987.
1982 Andhra Pradesh Motor Vehicles Taxation Act, 1963 [S. 6

In spite of the mandatory language used in the only deterrent provision

intended to prevent evasion of tax it has been much diluted, unfortunately,
mostly in favour of law breakers, who do not mind paying the tax whatever
levied if only they are permitted to break the law of nationalisation of stage
carriage services.

This dilution has occurred because of the interpretation put on the

phrases “tax due” and ignoring its epithet “as specified in Sec. 4” occurring
in Sec. 6 and Rules 12 and 13. A third consideration has also been introduced
according to which the Licensing Officer in levying the penalty should assess
the extent of guilty mind or intention to evade tax on the part of the tax payer.

What and When is the tax due.—The expression used in sections 6 or

Rule 12 or 13 is “tax due” under the Act not any or some tax. The tax due is
what is determined in the Government Notification for the relevant ‘class’
that may change from time to time, without any ‘assessment’ made or
‘demand notice’ issued by any authority. Accepting this position in the
earlier part of the judgment (as extracted in Note 5 under Sec. 3 above), the
Full Bench in Y. Peda Venkaiah v. R.T.O., AIR 1977 AP 227, while dealing with
penalty, however, said :

“The third question for consideration is whether penalty can be levied

in the circumstances of the case. Under Sec. 6 of the Act penalty can be levied
only if the tax due in respect of the motor vehicle has not been paid. In this
case it could not be said that any tax was due before the order levying penalty
was made. The vehicle was stopped in Nellore and the officer concerned
gave a show cause notice as to why it should not be taxed as a stage carriage
and after consideration of the explanation passed an order that it was plying
as a stage carriage, and hence tax had to be paid on that footing. It was in
the very same order that penalty also was levied. It was only when the
officer held that the carriage was used as a stage carriage and tax was payable
on that footing and demand was made to pay that tax, it can be said that a tax became
due. There was no tax due before such determination and demand : (emphasis supplied).

Finally the Hon’ble Court concluded that the levy of penalty was
contrary to the provisions of the Act.

Submission.—(i) The Hon’ble Court did not look into all the provisions
of the Act. Especially it omitted to notice Rule 5. In any event, Rule 5 has
since been amended to clarify doubts by saying that the benefit conferred
by that Rule (payment of proportionate tax) is not available in cases where
prior declaration as to the change of the user has not been filed and the
S. 6] Andhra Pradesh Motor Vehicles Taxation Act, 1963 1983

additional tax not paid simultaneously.

(ii) When the tax becomes ‘due’ in other tax laws (under which the
concerned officer has the additional power to ‘quantity’, the tax, unlike under
the Motor Vehicle Taxation Act) has been settled by the Supreme Court in
Commissioner of Income Tax v. Kalinga Tubes, (1996) 2 SCC 277; B.P. Jeevan Reddy
and S.B. Majumdar, JJ :

Para 9 of the Judgment :

“Now under all Sales Tax Laws including the Statute with which we
are concerned the moment a dealer makes either purchases or sales which
are subject to taxation, the obligation to pay the tax arises and the tax
liability is attracted. Although that liability cannot be enforced till the
quantification is effected by assessment proceedings, the liability for payment
of tax is independent of the assessment………It is not possible to comprehend
how the liability ceased to be one because the assessee had taken proceedings
before higher authorities for getting it reduced or wiped out so long as the
contention of the assessee did not prevail with regard to the quantum of
liability etc…. It can again not be disputed that the liability to payment of
sales tax had accrued during the year of assessment even though it had to
be discharged at a future date…...”

It is respectfully submitted that in view of the above pronouncement

of the Apex Court the view expressed in Y. Peda Venkaiah, AIR 1977 AP 227
(FB) that :

“It was only when the officer held that the carriage was used as a stage
carriage and tax was payable on that footing and demand was made to pay
that tax, it can be said that a tax became due. There was no tax due before
such determination and demand.”

Stands overruled

(ii) “as specified in Section 4”.—This phrase, though its existence

and effect was earlier considered in connection with the liability to pay the
additional tax, was totally ignored in the context of penalty in Y. Peda Venkaiah,
AIR 1977 AP 227 (FB), and hence the anomaly. The distinction between the
time of arising of the liability and the time for its enforcement was not
noticed. The penalty under Sec. 6 of the Motor Vehicle Taxation Act is
attracted the moment there is a failure to pay the tax due under the Act even
though the payment of tax may get postponed pending proceedings before
the licensing officer. Therefore, once the officer, after due enquiry, come to a
1984 Andhra Pradesh Motor Vehicles Taxation Act, 1963 [S. 6

conclusion that liability to additional tax has been incurred, he can, in the
same order impose penalty also provided in the earlier show-cause notice
the possibility of imposition of penalty was also indicated for the failure of
the advance payment of the tax that became due in view of the changed user
of the vehicle.

(iii) Proof of mens rea (guilty mind) in failing to pay the tax due.—
In M/s. Hindusthan Steel Ltd. v. State of Orissa, AIR 1970 SC 253 : (1969) 2 SCC
627, the Supreme Court made some observations to the effect that under the
Sales Tax Act penalty will not be ordinarily imposed unless the party acted
deliberately in defiance of law or was guilty of conduct contumacious or
dishonest, or acted in conscious disregard of its obligation. It was also
observed that an order imposing penalty for failure to carry out a statutory
obligation is the result of a quasi-criminal proceeding. It may be noted that
this case arose under the Sales Tax Act and the question of penalty in this
case arose, not in connection with evasion of tax but in relation to existence
or otherwise of some other fact.

In a recent case, Additional Commissioner of Income Tax v. I.M.Patel, AIR 1992

SC 1762, the Supreme Court was faced with a ruling of the Gujarat High
Court that :

“Reasonable cause is an ingredient of the offence for which the penalty

is provided and the taxing authority has prima facie to prove absence of
reasonable cause.”

Disagreeing with the above proposition, the Supreme Court recalled

its opinion expressed in an earlier decision –

“…………..unless there is something in the language of the statute

indicating the need to establish the element of mens rea, it is generally sufficient
to prove that a default in complying with the statue has occurred. In our
opinion there is nothing in section 271 (1) (a) (of the Income Tax Act, 1961)
which requires that mens rea must be proved before penalty can be levied
under that provision”

“ In view of this, it is no longer open to argument whether any mens

rea is required to be established under Sec. 271 (1) (a), as a matter of fact, in
the subsequent decision of this Court in AIR 1991 SC 585…………squarely
applied this ratio……..”
S. 6A] Andhra Pradesh Motor Vehicles Taxation Act, 1963 1985

In another more recent case Director of Enforcement v. MCTM

Corporation, (1996) 2 SCC 471, on the question of mens rea the Supreme Court
said (in para 7) :

“………….The officers of the Enforcement Department and other

administrative authorities are expressly empowered by the Act to ‘adjudicate’
only. Indeed they have to act ‘judicially’ and follow the rules of natural justice
to the extent applicable but, they are not ‘judges’ of the ‘criminal courts’
trying an ‘accused’ for commission of an offence, as understood in the general
context. They perform quasi-judicial functions and do not act as ‘courts’ but
only an ‘administrators’ and ‘adjudicators’. In the proceedings before them,
they do not try ‘an accused’ for commission of ‘any crime’ (not merely an
offence) but determine the liability of the contravenor the breach of his
‘obligation’ imposed under the Act and not impose any ‘sentence’ for the
commission of an offence ……..An order made by an adjudicating authority
under the Act is not that of conviction but of determination of the breach of
civil obligation by the offender”.

In para 8 of the judgment it proceeds to say :

“It is thus the breach of a ‘Civil Obligation’ which attracts ‘penalty’

under Sec. 23 (1) (a), FERA, 1947 and a finding that a delinquent has contravened
the provisions of Sec. 10, FERA, 1947 that would immediately attract the levy
of ‘penalty’ under Sec. 23, irrespective of the fact whether the contravention
was made by the defaulter with any ‘guilty intention’ or not………….”.
1
[6-A. Levy of tax on certain motor vehicles based on
gross traffic earnings.— Notwithstanding anything in Sections 3,
4, 5 and 6 :—

(1) Every registered owner, who owns or keeps in his

possession or control more than two thousand motor vehicles for
plying on hire or reward, shall pay in respect of all such motor vehicles
a tax at such rate, not exceeding fifteen percentum of the gross traffic
earnings, as may be specified by the Government, by notification
from time to time.

1. Section 6-A inserted by Act No. 15 of 1994, AP. Gazette Part IV-B (Ext.),
dated 23rd April, 1994.
1986 Andhra Pradesh Motor Vehicles Taxation Act, 1963 [S. 6A

Explanation :— For the purposes of this section :—

(a) the term “gross traffic earning” shall mean the total
amount collected towards fares, freights, including
luggage charges and any amount collected towards hire
or reward by or on behalf of such registered owner, either
directly or indirectly, in respect of all the motor vehicles,
as may be determined in the manner prescribed;

(b) while computing the “percentum of the gross traffic

earning”, the Government shall, as far as practicable, take
into account the amount of tax collected for the
preceding year from such owner, the changes in the rates
of tax under clause (3) during the current year if any;
and the approximate growth in the traffic during the
current year.

(2) In order to determine the amount of tax payable under

this section in any year, the registered owner shall make and deliver
a declaration, within such time to such authority and in such form
as may be prescribed,1 stating the gross traffic earning for the
preceding year, together with ten percentum of such gross traffic
earning and containing any other prescribed particulars, in respect
of all motor vehicles used or kept for use by him in the State in the
preceding year.

(3) On receipt of such declaration, the prescribed authority

shall, on the basis of such declaration, determine the amount of tax
to be paid by such registered owner provisionally and communicate
the same to the registered owner by issuing an order of provisional
assessment of tax for the year within such period and in such form
as may be prescribed:2

1. See Notification VII.

2. See Rule 14-A.
S. 6A] Andhra Pradesh Motor Vehicles Taxation Act, 1963 1987

Provided that it shall be open to the prescribed authority to

review any order of provisional assessment of tax for the year, in any
case where it is considered necessary so to do and pass a fresh order
of provisional assessment of tax.
1
[(4) The amount of tax provisionally determined under clause
(3) shall be paid by the registered owner of the motor vehicles or any
other person having possession or control thereof, to the prescribed
authority in twelve equal monthly instalments, to be paid on or before
the fifteenth day for the month of April and on or before the tenth
day for the remaining months in the calendar year, in the manner
specified in Section 11].

(5) The registered owner shall thereafter deliver within the

prescribed2 time, the final declaration stating the gross traffic earning
of the year and containing such other particulars as may be
prescribed, such declaration shall be accompanied, by the details of
provisional payment of tax paid to the prescribed authority in
pursuance of the order of provisional assessment issued for the year
and by such other documents as may be prescribed.

(6) On receipt of such final declaration, the prescribed

authority shall verify the number of motor vehicles used or kept for
use by the registered owner during the year for which the tax is
payable, the amount of fares, freights, luggage charges and hire or
rewards collected and such other particulars as may be deemed
necessary and shall finally determine the amount of tax leviable at
the rate fixed under clause (1), and communicate the same to the
registered owner by issuing an order of final assessment of tax for the
year in such form as may be prescribed.

(7) Where the amount of tax is finally determined under clause

(6), taking into consideration the amount paid by the registered owner
or other person under clause (4), the difference, if any, that may be

1. Subs. by Amendment Act No. 12 of 2002.

2. See Rule 14-A.
1988 Andhra Pradesh Motor Vehicles Taxation Act, 1963 [S. 7

due shall be paid by, or refunded to, the registered owner in such
manner and within such time as may be prescribed.

(8) The prescribed authority may, for purposes of this section,

require the registered owner of the motor vehicle or the person having
the possession or control thereof, to produce before it any accounts,
registers, records or other documents or to furnish any information
and examine the accounts, registers, records or other documents; and
the registered owner or other person shall comply with the such
requisition so made.

(9) The registered owner or other person having the possession

or control of the motor vehicle who commits default in the payment
of tax as required under this section, shall be liable to pay such amount
towards penalty, not exceeding one-fourth of the amount of the tax
payable, as may be levied by the prescribed authority].

7. Recovery of tax, penalty or fine as an arrear of land

revenue.—Any tax, penalty or fine due under this Act may be
recovered in the same manner as an arrear of land revenue;1 the motor
vehicle in respect of which the tax, penalty or fine is due or its
accessories may be distrained and sold, whether or not such motor
vehicle or accessories are in the possession or control of the person
liable to pay the tax, penalty or fine.
NOTES

Section 7 is in two parts. The first part of it provides that any tax,
penalty or fine due under the Taxation Act may be recovered in the same
manner as an arrear of land revenue, by the sale of movable or immovable
property of the defaulter. Under the second part, the motor vehicle in respect
of which the tax, penalty or fine in due or its accessories alone may be
distrained and sold. It is immaterial whether such motor vehicle or its
accessories are in the possession or control of the person liable to pay the
tax, penalty or fine. This second part is in conformity with the provisions of
Sec. 4 (1) (a) which imposes the duty to pay the tax not only on the owner of
the vehicle but also on a non-owner if he is in control of the vehicle.

1. See Notification VIII.

S. 8] Andhra Pradesh Motor Vehicles Taxation Act, 1963 1989

Hindusthan Automobile Corporation v. R.T.O., (1974) 2 An.WR 299 : AIR 1975 AP

242 and also Sundaram Finance v. R.T.O., AIR 1992 SC 117.

8. Power to seize and detain motor vehicles in case of

non-payment of tax.—Without prejudice to the provisions of
Sections 6 and 7, where any tax due in respect of any motor vehicle
has not been paid as specified in Section 4, such officer as may be
prescribed,1 may seize and detain the motor vehicle in respect of
which the tax is due under this Act and for this purpose take or cause
to be taken any steps he may consider necessary for the temporary
safe custody of the vehicle, until the tax due in respect of the vehicle
is paid.
NOTES
1. Ingredients of Section 8.—Before a motor vehicle can be
seized under this section the following conditions should be fulfilled :—

(i) the officer must be the one authorised to seize and detain it
under Rule 10;

(ii) some amount of tax must be due in respect of such motor vehicle
under the A.P. Motor Vehicle Taxation Act; and

(iii) such tax must not have been paid as specified in Sec. 4 (that is
in advance of using the vehicle or keeping it for use).

This power is available in addition to the power under Sec. 6 (to levy
penalty) and under Sec. 7 (the power to recover arrears of tax and penalty
under Revenue Recovery Act or to distrain and sell the motor vehicle or its
accessories). Once the above said three conditions exist, the vehicle can be
seized and detained until the tax ‘due’ in respect of such vehicle is paid. If
the tax due is not paid within a reasonable period the vehicle may be sold in
exercise of the power available under Sec. 7.

The scope of this simple provision, inspite of its remaining in force for
decades, is considered not clear with the result that a learned Single Judge of
the A.P. High Court felt it appropriate and proper to have an authoritative
pronouncement of a Division Bench with regard to interpretation of Sec. 8 of
A.P. Motor Vehicle Taxation Act together with Sec. 207 of the Motor Vehicle

1. See Rule 10.

1990 Andhra Pradesh Motor Vehicles Taxation Act, 1963 [S. 8

Act. Irrelevancy of the provisions of the Motor Vehicles Act in interpreting

the taxation has been stated and restated authoritatively by Division Benches
or Full Benches of A.P. and also by the Apex Court. Yet the Revenue has not
been able to submit to the Court that Sec. 207 of Motor Vehicles Act has
nothing to do with Sec. 8 of the Taxation Act. The result is that there arises
a further contribution to the confusion and also obstacles in the enforcement
of the Taxation Act.—Saleem Tours and Travels v. JTC, Hyderabad, AIR 2000 AP
497.
It is in this case that an authoritative pronouncement with regard to
interpretation of Sec. 8 of the Motor Vehicle Taxation Act together with Sec.
207 of Motor Vehicle Act is sought for.

The scope and constitutional validity of Sec. 207 of Motor Vehicles Act
(though with reference to its predecessor) having been settled by the Apex
Court in Transport Commissioner v. Sardar Ali, AIR 1983 SC 1225, which has been
noticed by the Hon’ble Division Bench there was no occasion for re-examining
it.

The Department should blame itself for not bringing the settled law
with regard to the irrelevancy of the Motor Vehicles Act to the Taxation Act.
On the contrary, a reading of the judgment in this case shows that the
respondent-authority passed an order if release of the vehicles purporting
to act under Sec. 207 (2) of the Motor Vehicles Act, 1988, but imposed
conditions touching the tax ‘due’, which conditions are not authorised under
the Motor Vehicles Act.

In the writ petition before the Division Bench, contract carriages were
seized for having been allegedly used as express stage carriages,
simultaneously attracting the provisions of both the enactments. Obviously
there was, in each case, a common check report. That does not mean that all
proceedings that follow must also be “common”. Enactments being different,
considerations and consequences being different, enforcement for a being
different the two proceedings should have been taken separately. Under the
Taxation Act there is no provision analogous to Sec. 207 (2) of Motor Vehicles
Act. All that was necessary under the Taxation Act was a show cause notice
for the tax due and penalty. In fact the practice has been to refer to Sec. 8 of
the Taxation Act in the check report and also to inform the offender to make
representation if any. Only, a show cause notice for the levy of proposed
penalty is sufficient, with reference to the check report and the consequent
liability to pay the additional tax under Rule 5 of the Taxation Rules. Section
8 itself authorises, the officer to seize and detain the motor vehicle until the
tax due (not penalty) in respect of the vehicle is paid.
S. 8] Andhra Pradesh Motor Vehicles Taxation Act, 1963 1991

The further complication arises from the concession virtually made

by the learned Government pleader that power of seizure under Sec. 8 cannot
be exercised in a situation with which we are concerned (para 7).
2. Facts of the case and scope of Section 8 of Taxation Act.—
Vehicle of the petitioners covered by All India Tourist Permits or State wide
contract carriage or motor cab permits were seized on the allegation that
the vehicles were carrying individual passengers, picked up at different
places and running as stage carriages contrary to the conditions of permit.
The petitioners approached the concerned Transport Authority for release
of the vehicle under Sec. 207 (2) of the Motor Vehicles Act. The authorities
appear to have imposed unreasonable conditions for releasing the vehicle
under Sec. 207 (2). The main grievance of the petitioners was that the
authorities directed the petitioners to furnish bank guarantee for or even to
pay the estimated difference tax and compounding fee “to consider his
application for release of the vehicle”. Hence the reference for an authoritative
pronouncement with regard to interpretation of Sec. 8 of A.P. Motor Vehicles
Taxation Act together with Sec. 207 of the Motor Vehicles Act so that some
broad parameters are laid down by the Hon’ble Court.

Scope of Section 8
The whole problem seems to depend on the meaning of the phrase “tax
due” to warrant seizure of the vehicle, in cases when vehicles are found being
used for a purpose different from the one envisaged at the time of granting
licences attracting a higher rate of tax. The answer to the question is
furnished by Rule 5. Unfortunately this provision was not brought to the
notice of the Hon’ble Court.
The two aspects what is meant by the ‘tax due’ and when it becomes
due has been elaborately discussed in the notes under Sec. 6. Nothing need
be said further at least in this brief work. However, a submission or two
are called for :—
(i) The Hon’ble Court itself observed in para 12 :
“The provisions for seizure are introduced in various enactments
firstly to provide a deterrent effect and secondly to facilitate the finalisation
of enquiry and implementation of the orders passed as a result of enquiry.
Attempts at circumventing the provisions of the statute are intended to be
checked thereby……….. Here again the formation of belief should be based
on relevant and existent grounds.”
Submission.—Similar is the intendment of Sec. 8. No where it has been
indicates that the officer who seized the vehicles did not have reasonable
belief that the vehicles used in a manner that attracted higher rate of tax.
1992 Andhra Pradesh Motor Vehicles Taxation Act, 1963 [S. 8

(ii) In para 15, the Hon’ble Court observed rightly, if it can be

submitted respectfully that :
“The seizure under Sec. 207 has to be delinked from the question of
tax liability under the provisions of the Taxation Act though the violations
giving rise to seizure may give right to action under both the Acts”.
(iii) In para 16 the Hon’ble Court says :
“………..It must be remembered that except in rare cases, detention of
the vehicle is not necessary for holding an enquiry and taking necessary
action for contravention if the conditions of permit. No purpose will be served
if the vehicle is detained and kept in the custody …….for weeks and months
together.”
Submission.—The enquiry about the tax liability does not take weeks
and months, except on account of inactivity on the part of the defaulter. (If
in any case the authorities cause or contribute to unnecessary delay, they
must be dealt with severely as the Hon’ble Court did in Mohd. Naseeruddin v.
R.T.A, Sangareddy, 1997 (5) ALT 90 (Case No. 69 on page 431 of the
Commentator’s Motor Vehicle Taxation Law).
There is unfortunately no attempt on the part of the authorities to state
before the Hon’ble Court whether and if so what was the explanation of the
defaulter regarding the tax liability. The best time for enquiry regarding the
tax liability is when the ‘eye witnesses’ the passengers of the vehicle are
available. Their presence cannot be enforced later and those who might be
produced later might not be the eye witnesses. The Checking Officer usually
obtain statements from the passengers. Did the defaulters in the instant case
say anything about such statements? What further enquiry remains to be
made in the absence of any explanation from the defaulters? If the defaulter
can furnish a satisfactory explanation showing that no additional tax is
leviable, the vehicle itself will be released and no further proceedings ensue.
As the Hon’ble Supreme Court observed, the authorities acting under Sec. 8
of the Taxation Act are not ‘courts’ trying a criminal. Administrative
proceedings under the Taxation Act necessarily are summary in nature. No
orders analogous to those under Sec. 207 (2) are possible under Sec. 8 of the
Taxation Act except to wait for some reasonable time till the tax due is paid,
or else to sell the seized vehicle under Sec. 7 of the Taxation Act. In regard to
the view that no purpose will be served by the seizure of the Motor Vehicle
all that can be submitted is that it serves the same purpose as the seizure
under Sec. 207 of the Motor Vehicles Act serves read with provisions of the
Criminal Procedure Code – namely carrying out of the intention of Sec. 8
read with Sec. 7.
S. 9] Andhra Pradesh Motor Vehicles Taxation Act, 1963 1993

Finally it is submitted with great respect that in the light of what is

stated in the notes under Sec. 6 above, especially in view of the decisions of
the Hon’ble Supreme Court there, the decision of the Division Bench under
study cannot be said to have laid down any binding law.
(iv) The reference made to a Supreme Court decision in Union of India
v. Raman Iron Foundry, AIR 1974 SC 1265 is inapt. That case interpreted “sum
due” with reference to contractual terms and arbitration neither of which
gave rise to statutory liability as in the case of any fiscal statute, more
especially the A.P. Motor Vehicles Taxation Act.
(v) When soon after seizure of motor vehicles under Sec. 207 of
Motor Vehicles Act petitioners approached the High Court straight away,
the Hon’ble Court insisted on the petitioners to approach the authorities
under sub-section (2) of Sec. 207. Now, when the vehicles are seized under
Sec. 8 of the Taxation Act the Department failed to inform the Court that
‘seizure’ itself is appealable under Sec. 12 (b). In a departmental appeal, the
superior officer who is better informed, would have examined all the
questions raised and passed a reasoned order and the course of Sec. 8 would
have been smoother, hopefully.
Seizure of vehicle of Tractor-cum-Trailer by Assistant Motor Vehicles
Inspector on ground of non-payment of tax and penalty is not proper as
the Assistant Motor Vehicle Inspector is not one of the authorised officer to
seize vehicle. No seizure communication to the owner also. Court ordered
that pending finalisation of proceedings by competent authority, the vehicle
be released on deposit of Rs. 33,560/- and furnishing an undertaking not to
sell the vehicle or create third party interest. Amount deposited shall be
subject to final order.— Pallapu Srinu v. Secretary, Regional Transport Authority,
Karimnagar, 2013 (6) ALD 400 : 2013 (5) ALT 677 (DB)

9. Exemption, reduction or other modification of tax.—

The Government may, by notification,1—
(a) grant an exemption, make a reduction in the rate or order
other modification not involving an enhancement in the rate of the
tax payable,1—
(i) by any person or class of persons; or
(ii) in respect of any motor vehicle or class of motor vehicles
or motor vehicles running in any particular area; and

1. See index of notifications IX issued under Section 9.

1994 Andhra Pradesh Motor Vehicles Taxation Act, 1963 [S. 10

(b) cancel or vary such exemption, reduction or other

modification.
(2) Any notification issued under sub-section (1) shall be laid,
as soon as may be after it is issued, on the table of the Legislative
Assembly of the State while it is in session for a total period of fourteen
days which may be comprised in one session or in two successive
sessions.
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.1
2
[(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].
Explanation I.—For the purpose of this section, the expression
“agricultural operation” shall mean tilling, sowing, harvesting,
crushing of agricultural produce or any other similar operation
carried out for the purpose of agriculture; but shall not include the
transporting of persons, manure of materials for the purpose of
agriculture or the transporting of agricultural produce except when
such transporting is made by the owner or occupier of the land for
his own purposes :—
(i) within a distance of fifteen miles from the limits of such
land; or
(ii) to or from the nearest market place irrespective of the
distance of such market from the limits of such land.

1. See Rule 8.
2. Sub-section (2) added by Act 10 of 1974.
S. 11] Andhra Pradesh Motor Vehicles Taxation Act, 1963 1995

Explanation II.—For the purpose of this section, “personal

cultivation” means cultivation by a person of his own land and on
his own account :—
(1) by his own labour;

(2) by the labour of any member of his family; or

(3) by servants on wages payable in cash or kind or both by hired

labour under his personal supervision or under the personal
supervision of any of his relatives.

Explanation III.—For the purpose of this section, the expression

“mining operation” means any operation undertaken for the purpose
of winning any mineral.
Note
The Government of A.P. has exempted tax and in respect of 3 wheelers
contract carriages (passengers Autorickshaws) with seating capacity of four,
five, six and seven in all; three-wheeled Goods Carriages (Light Goods
Vehicles) up to the Gross Vehicle Weight (GVW) of 3000 kgs; Tractors and
Tractor -Trailers used for agricultural purpose. [G.O.Ms. No. 16 TR&B (Tr.I)
Dept., dt. 06-02-2019.

CASE LAW

If any of the Construction Equipment Vehicles are designed for use

solely in mining industry or for agricultural operations, they have to pay
life tax and seek exemption under Sec. 10 of the Motor Vehicles Taxation Act.
The owners of such vehicles are entitled for refund after obtaining
exemption.—Khader Basha v. Regional Transport Officer, Chittoor, W.P. No. 173 of
2010 and batch dt. 28-9-2011(DB).
1
[11. Manner of payment of dues under this Act.—
Payment of every amount due under this Act shall be made by the
production before the Licensing Officer, of a demand draft obtained
from any scheduled Bank as defined in the Reserve Bank of India
Act, 1934 (Central Act 2 of 1934) to the value for which payment is
required or in such other manner as may be prescribed].2
1. Section 11 substituted by Act 11 of 1971 A.P. Gazette dated 15-4-1971. (Notified to come
into force from 5-8-71 in G.O.Ms. No. 1047, Home (Tr.-II) Dept., dated 4-8-1971).
2. Rules 13-A, 13-B and 14
1996 Andhra Pradesh Motor Vehicles Taxation Act, 1963 [S. 12
1
[12. Appeal.—any person aggrieved,—

(a) by an order of levy of additional tax imposed under

Section 3-A;

(b) by an order of levy under Section 6; or

(c) by the seizure under Section 8,

may within a period of thirty days from the date of

communication to him of the order of levy or the date of seizure as
the case may be, appeal to such authority in the manner and on
payment of such fees as may be prescribed].

13. Protection of acts done in good faith.—No suit,

prosecution of other legal proceeding shall be instituted against any
person for anything which is in good faith, done or intended to be
done under this Act or under the rules made thereunder.

14. Trial of offences.—No Court inferior to that of a

Second Class Magistrate shall try any offence punishable under
this Act.

15. Procedure in certain cases.—(1) A Court taking

cognizance of an offence punishable under sub-section (1) or under
sub-section (2) of Section 5, in so far as it relates to wilful failure to
stop a motor vehicle when required to do so by an officer, may state
upon the summons to be served on the accused person that he :—

(a) may appear by pleader and not in person; or

(b) may, by a specified date prior to the hearing of the

charge, plead guilty to the charge by a registered
letter addressed to the Court and remit to the Court
such sum not exceeding fifty rupees, as the Court, may
specify.

1. Subs. by Act 11 of 2010 w.e.f. 2-2-2010.

S. 16] Andhra Pradesh Motor Vehicles Taxation Act, 1963 1997

(2) Where an accused person pleads guilty and remits the

sum specified by the Court, no further proceedings in respect of the
offence shall be taken against him.
16. Power to make rules.—(1) The Government may, by
notification make rules for carrying out all or any of the purposes of
this Act.
(2) Any rule made under sub-section (1) may provide that a
breach thereof shall be punishable with fine, which may extend to
fifty rupees.1
(3) Every rule made under this section shall, immediately after
it is made, be laid before each House of the State Legislature if it is in
session and if it is not in session, in the session immediately following,
for a total period of fourteen days which may be comprised in one
session or in two successive sessions, immediately following, both
Houses agree in making any modification in the rule or in the
annulment of the rule shall thereafter have effect only in such modified
form or stand annulled as the case may be; so, however that any
such modification or annulment shall be without prejudice to the
validity of anything previously done under that rule.

17. Power to amend Schedules.—(1) The Government may,

by order amend the Schedules.

(2) A draft of any order proposed to be made under sub-

section (1) shall be laid on the table of the Legislative Assembly of the
State and the order shall not be made, unless the Assembly approves
the draft either without any modification or addition or with any
modification or addition, and upon such approval, the order may be
made in the form in which it has been so approved and such order,
on being so made, shall be published in the Andhra Pradesh Gazette.

(3) When a Schedule is so amended, any reference to the

Schedule in this Act shall be construed as a reference to Schedule as
so amended.
1. See Rule 17.
1998 Andhra Pradesh Motor Vehicles Taxation Act, 1963 [S. 18

18. Repeals and savings.—The following Acts are hereby

repealed :—

(i) the Andhra Pradesh (Andhra Area) Motor Vehicles

Taxation Act, 1931;

(ii) the Andhra Pradesh (Telangana Area) Motor Vehicles

Taxation Act, 1955; and

(iii) the Andhra Pradesh Motor Vehicles (Taxation of

Passengers and Goods) Act, 1952 :

Provided that such repeal shall not affect previous operation

of the said Acts or any right, privilege, obligation or liability already
acquired, accrued or incurred thereunder, and subject thereto,
anything done or any action taken (including any appointment,
notification, notice order, rule, form, certificate, licence or permit) in
the exercise of any power conferred by or under the said Acts shall
be deemed to have been done or taken in the exercise of the powers
conferred by or under this Act as if this Act were in force on the date
on which such thing was done or action was taken and all arrears
of tax and other amounts due at the commencement of this Act may
be recovered as if they had accrued under this Act.

19. Powers to remove difficulty.—If any difficulty

arises in giving effect to the provisions of this Act in consequence of
the transition to the said provisions from the corresponding
provisions of the Acts in force immediately before the
commencement of this Act or otherwise, the Government may, after
previous publication by order published in the Andhra Pradesh
Gazette, make such provisions, not inconsistent with the purposes
of this Act, as appear to them to be necessary or expedient for
removing the difficulty.
Sch.I] Andhra Pradesh Motor Vehicles Taxation Act, 1963 1999

1
[THE FIRST SCHEDULE]
[Proviso to sub-section (2) of Section 3]

Classes of Motor Vehicles fitted with pneumatic tyres Maximum

Quarterly tax
(1) (2)
Rs. Ps.
1. Motor Vehicles including motors, scooters and
cycles with attachment for propelling the same
by mechanical power not exceeding 406 Kgs. in
weight unladen —

(a) Bicycles below 350 cc if not used for dra-

wing a trailer or side car. 120-00

(b) Bicycles below 350 cc if used for drawing

a trailer or side car and bicycles of and
above 350 cc whether used for drawing a
trailer or a side car or not. 140-00

(c) Tricycles 160-00

2. Invalid carriages 60-00

3. Goods carriages—

(a) Vehicles not exceeding 300 Kgs. in laden

weight. 1200-00

(b) Vehicles exceeding 300 Kgs. but not exceeding

1000 Kgs. in laden weight 1500-00

(c) Vehicles exceeding 1000 Kgs. but not exceeding

1500 Kgs. in laden weight 2100-00

(d) Vehicles exceeding 1500 Kgs. but not exceeding

3000 Kgs. in laden weight 2400-00

(e) Vehicles exceeding 3000 Kgs. but not exceeding

4500 Kgs. in laden weight 2700-00

1. Subs. by G.O.Ms. No. 196, TR&B (Tr-II), dt. 30-9-1996, published in A.P. Gazette, Part
I (Ext) issue No. 445 dated 3-10-1996.
2000 Andhra Pradesh Motor Vehicles Taxation Act, 1963 [Sch.I

(1) (2)

(f) Vehicles exceeding 4500 Kgs. but not exceeding

5500 Kgs. in laden weight 3600-00

(g) Vehicles exceeding 5500 Kgs. but not exceeding

9000 Kgs. in laden weight 4800-00

(h) Vehicles exceeding 9000 Kgs. but not exceeding

12000 Kgs. in laden weight 6000-00

(i) Vehicles exceeding 12000 Kgs. but not exceeding

15000 Kgs. in laden weight 7200-00

(j) Vehicles exceeding 15000 Kgs. in laden weight 7200-00+

200-00
(for every
250 Kgs.
or part
thereof in
excess
of 15000
Kgs.)
(k) Additional Tax payable in respect of goods
carriages used for drawing trailers—

(i) for each trailer not exceeding 1000 Kgs. in

laden weight; 1200-00

(ii) for each trailers exceeding 1000 Kgs. but

not exceeding 3000 Kgs. in laden weight; 1800-00

(iii) for each trailer exceeding 3000 Kgs. in

laden weight : 2400-00

Provided that two or more goods carriages shall

not be chargeable under this class in respect of same
trailer.

4. Motor Vehicles plying for hire and used for trans-

port of passengers and in respect of which per-
mits have been issued under the Motor Vehicles
Act, 1988,—

(i) Vehicles permitted to carry in all not more

than five persons 500-00
Sch.I] Andhra Pradesh Motor Vehicles Taxation Act, 1963 2001

(1) (2)

(ii) Vehicles permitted to carry more than five

persons but not more than seven persons
in all, for every person, other than the dri-
ver which the vehicle is permitted to carry 200-00

(iii) Vehicles permitted to carry more than six

passengers and plying as stage carriages
on town service routes—

(a) in respect of vehicles permitted to

ply as Express Services for every
passenger (other than the driver
and conductor) which the vehicle
is permitted to carry 1200-00

(b) in respect of vehicles permitted to

ply as ordinary services, for every
passenger (other than the driver and
the conductor) which the vehicle is
permitted to carry 1000-00

(iv) Vehicles permitted to carry more than six

passengers and plying as stage carriages
on routes other than town services routes—

(a) in respect of vehicles permitted to ply as

Express Service for every passenger (other
than the driver and the conductor) which
1
the vehicle is permitted to carry; [1800-00]

(b) in respect of vehicles permitted to ply as

ordinary services, for every passenger
(other than driver and the conductor)
which the vehicle is permitted to carry. 1200-00

(v) Vehicles permitted to carry more than six

passengers and plying as contract carriages
for every passenger (other than the driver)
which the vehicle is permitted to carry 4000-00

1. Subs. for the figures “4000” by Act No. 33 of 2006, w.e.f. 25-05-2006.
2002 Andhra Pradesh Motor Vehicles Taxation Act, 1963 [Sch.I

(1) (2)

(vi) (a) Vehicles permitted to carry more than six

passengers and plying as contract carriages
on inter-State routes on temporary permits
under sub-section (8) of section 88 of the
Motor Vehicles Act, 1988 and on intra-state
routes (within the State of Andhra Pradesh)
for every passenger (other than driver)
which the vehicle is permitted to carry 4000-00

(b) contract carriages plying within the Home

District and any one contiguous district for
every passenger (other than driver) 4000-00
1
[(vii) x x x x x x]

5. Motor Vehicles not themselves constructed to

carry any load other than water, fuel, accumula-
tors and other equipments used for the purpose of
propulsion, loose tools and loose equipment used
for haulage solely and weighing together with the
largest number of trailers proposed to be drawn 3000-00

6. (i) Fire engines, fire tenders and road water sprink-

lers 600-00

(ii) Additional tax payable in respect of such vehicles

used for drawing trailers including fire engines
and trailer pumps : 60-00

Provided that two or more vehicles shall not be

chargeable under this clause in respect of the same
trailer.

7. OMNI BUSES with a seating capacity of more than

6 (excluding driver) and used for the transports of
persons, for every person other than the driver. 400-00

1. Sub-item (vii) of item 4 omitted by Act 33 of 2006, w.e.f. 25-05-2006. The earlier was
as follows :—
“(vii) Maxicab—Vehicles permitted to carry more than
6 passengers but not more than twelve passengers. 1000-00”
Sch.I] Andhra Pradesh Motor Vehicles Taxation Act, 1963 2003

(1) (2)

8. Motor Vehicles other than those liable to tax

under the foregoing provision of this Schedule—

(a) weighing not more than 762 Kgs. unladen 260-00

(b) weighing more than 762 Kgs. but not more than
1524 Kgs. unladen 360-00

(c) weighing more than 1524 Kgs. but not more than
2286 Kgs. unladen 460-00

(d) weighing more than 2286 Kgs. but not more than
3048 Kgs. unladen 560-00

(e) weighing more than 3048 Kgs unladen but not

weighing more than 4000 kgs. 720-00

(f) weighing more than 4000 Kgs. unladen 720-00+

80-00
(for every
250 kgs. or
part thereof
in excess of
4000 kgs.)

(g) Additional tax payable in respect of such vehicles

used for drawing trailers :—

(i) for each trailer not exceeding 1015 Kgs.

in weight unladen 160-00

(ii) for each trailer exceeding 1015 Kgs. in

weight unladen : 300-00

Provided that two or more vehicles shall not be

chargeable under this clause in respect of the same
trailer.
2004 Andhra Pradesh Motor Vehicles Taxation Act, 1963 [Sch.II

1
[THE SECOND SCHEDULE]
[Proviso to sub-section (4) of Section 4]

Maximum
Classes of Motor Vehicles fitted with For a For a
pneumatic tyres period period
not exceeding
exceeding seven days
seven days but not
exceeding
thirty days
(1) (2) (3)
Rs. Ps. Rs. Ps.
1. Motor cycles whether used for drawing a
trailer or side car or not including motor
scooters and cycles with attachment for
propelling the same by mechanical power 12-00 40-00

2. Invalid carriages 5-00 15-00

3. Goods vehicles —

(a) Vehicles not exceeding 1000 Kgs. in

laden weight 113-00 375-00

(b) Vehicles exceeding 1000 kgs. but not

exceeding 1500 kgs. in laden weight 158-00 525-00

(c) Vehicles exceeding 1500 kgs. but not

exceeding 2300 kgs. in laden weight 169-00 563-00

(d) Vehicles exceeding 2300 kgs. but not

exceeding 3000 kgs. in laden weight 180-00 600-00

(e) Vehicles exceeding 3000 kgs. but not

exceeding 4300 kgs. in laden weight 203-00 675-00

(f) Vehicles exceeding 4300 kgs. but not

exceeding 5600 kgs. in laden weight 270-00 900-00

(g) Vehicles exceeding 5600 kgs. but not

exceeding 7600 kgs. in laden weight 315-00 1050-00

1. Subs. by Act 11 of 1992, w.e.f. 15-04-1992.

2004
Sch.II] Andhra Pradesh Motor Vehicles Taxation Act, 1963 2005

(1) (2) (3)

Rs. Ps. Rs. Ps.
(h) Vehicles exceeding 7600 kgs. but not
exceeding 9100 kgs. in laden weight 360-00 1200-00

(i) Vehicles exceeding 9100 kgs. but not

exceeding 10700 kgs. in laden weight 450-00 1500-00

(j) Vehicles exceeding 10700 kgs. but not

exceeding 12700 kgs. in laden weight 495-00 1650-00

(k) Vehicles exceeding 12700 kgs. but not

exceeding 14700 kgs. in laden weight 518-00 1725-00

(l) Vehicles exceeding 14700 kgs. but not

exceeding 15500 kgs. in laden weight 540-00 1800-00

(m) Vehicles exceeding 15500 kgs. in laden

weight 540-00 + 1800-00 +
15-00 for 50-00 for
every 250 every 250
Kgs. or Kgs. or
part part
thereof thereof
in excess in excess
of 15500 of 15500
kgs. laden kgs. laden
weight weight

(n) Additional tax payable in respect of

vehicles used for drawing trailers —

(i) for each trailer not exceeding

1000 kgs. in laden weight 90-00 300-00

(ii) for each trailer exceeding 1000 kgs.

but not exceeding 3000 kgs. in
laden weight 135-00 450-00

(iii) for each trailer exceeding 3000 kgs.

in laden weight : 180-00 600-00

Provided that two or more vehicles shall

not be chargeable under this clause in respect
of the same trailer.
2006 Andhra Pradesh Motor Vehicles Taxation Act, 1963 [Sch.II

(1) (2) (3)

Rs. Ps. Rs. Ps.
4. Motor Vehicles plying for hire and used for
the transport of passengers—

(i) to carry in all not more than

4 persons 38-00 125-00

(ii) to carry more than 4 persons, but

not more than 7 persons, for every
person which the vehicle is so per-
mitted to carry 15-00 50-00

(iii) to carry more than 7 persons, for

every person which the vehicle is so
1
permitted to carry [300-00 1000-00]

5. Motor Vehicles other than those liable to

tax under the foregoing provisions of this
Schedule—

(a) weighing not more than 762 kgs.

unladen 20-00 65-00

(b) weighing more than 762 kgs. but not

more than 2286 kgs. unladen 35-00 115-00

(c) weighing more than 2286 kgs.

unladen 42-00 140-00

(d) Additional tax payable in respect

of such vehicles used for drawing
trailers—

(i) for each trailer not exceeding

1016 kgs. in weight unladen 12-00 40-00

(ii) for each trailer exceeding

1016 kgs. in weight unladen : 23-00 75-00

Provided that two or more vehicles shall

not be chargeable under this clause in respect
of the same trailer.

1. Substituted by Act 1 of 1997.

 1
[THE THIRD SCHEDULE
(See second proviso to sub-section (2) of Section 3)
Sch.III]

Motor Cycles including Tri cycles, Motor, Scooters

Sl. Period/Class Invalid
and Cycles with or without attachment
No. of vehicle carriage
Vehicles not exceeding 60 CC Vehicles exceeding 60 CC
1 2 3 4 5
1. At the time of registration of new vehicles. 9% of the cost 9% of the cost Rs. 901/-
2. If the vehicles is already registered and its
age from the month of registration is :
(1) Not more than 2 years 8% cost of the vehicle 8% cost of the vehicle Rs. 829/-
(2) More than 2 years but not more 7% cost of the vehicle 7% cost of the vehicle Rs. 758/-
than 3 years
(3) More than 3 years but not more 6% cost of the vehicle 6% cost of the vehicle Rs. 686/-
than 4 years
(4) More than 4 years but not more 5% cost of the vehicle 5% cost of the vehicle Rs. 615/-
than 5 years
(5) More than 5 years but not more 4% cost of the vehicle 4% cost of the vehicle Rs. 543/-
than 6 years
(6) More than 6 years but not more 3.5% cost of the vehicle 3.5% cost of the vehicle Rs. 472/-
than 7 years
(7) More than 7 years but not more 3% cost of the vehicle 3% cost of the vehicle Rs. 400/-
than 8 years
(8) More than 8 years but not more 2.5% cost of the vehicle 2.5% cost of the vehicle Rs. 329/-
than 9 years
(9) More than 9 years but not more 2% cost of the vehicle 2% cost of the vehicle Rs. 257/-
Andhra Pradesh Motor Vehicles Taxation Act, 1963

than 10 years
(10) More than 10 years but not more 1.5% cost of the vehicle 1.5% cost of the vehicle Rs. 186/-
than 11 years
(11) More than 11 years 1% cost of the vehicle 1% cost of the vehicle Rs. 114/-
2007

1. Subs. by Act No. 11 0f 2010 w.e.f. 2-2-2010

2008 Andhra Pradesh Motor Vehicles Taxation Act, 1963 [Sch.IV
1
[THE FOURTH SCHEDULE
(See Third Proviso to sub-section (2) of Section 3)

Sl. Rate of Tax on Road

No. Period Rollers and Construction
Equipment Vehicles
(1) (2) (3)

1. At the time of registration of new 7.5% of the cost of the

vehicle vehicle.
2. If the vehicle is already registered and
its age from the month of the registra-
tion is :
(i) Less than 3 years 6.5% of the cost of the vehicle.
(ii) More than 3 years and less than 5.0% of the cost of the vehicle.
6 years
(iii) More than 6 years 4.0% of the cost of the vehicle.].

2
[THE FIFTH SCHEDULE]
[See Sub-section (1) of Section 3-B]

Sl.
Class of vehicles Amount of Tax
No.

(1) (2) (3)

1. Motor vehicles other than Transport

vehicles which have completed 15 years
from the date of their registration :—
(i) Motor Cycle Rs. 1000/- P.A.
(ii) Other than motor cycle Rs. 5000/- P.A.
2. Transport vehicles which have comple-
ted 7 years from the date of their
registration. Rs. 5000/- P.A.

1. Subs. by Act No. 11 0f 2010, w.e.f. 2-2-2010.

2. Added by Act No. 33 of 2006, w.e.f. 25-05-2006.
Sch.VI] Andhra Pradesh Motor Vehicles Taxation Act, 1963 2009

1
[THE SIXTH SCHEDULE
(See Fourth Proviso to sub-section (2) of Section 3)

Three or four wheeler Three or four wheeler

motor vehicles motor vehicles including
including Motor Cars, Motor Cars, Jeeps
Jeeps coming under coming under non-
non-transport transport category, not
category, not exceeding 2286 Kgs. in
exceeding 2286 Kgs. unladden weight, omni
in unladden weight, buses upto a seating
omni buses upto a capacity of (10) ten
seating capacity of (10) persons in all and new
S.No. Period /Class ten persons in all and Motor Cabs and the
of vehicle new Motor Cabs and Motor Cabs of other
the Motor Cabs of States that are entering
other States that are into the rolls of this State
entering into the rolls of by way of change of
this State by way of address or transfer of
change of address or ownership the cost of
transfer of ownership which exceed rupees
the cost of which does ten lakhs.
not exceed rupees ten
lakhs.
(1) (2) (3) (4)

1. At the time of registration 12% of the cost 14% of the cost of

of New Vehicles of the vehicle the vehicle
2. If the vehicles is already
registered and its age from
the month of registration
is :
(1) Not more than 2 years 11% of the cost of 13% of the cost of
the vehicle the vehicle
(3) More than 2 years but 10.5% of the cost 12.5% of the cost of
not more than 3 years of the vehicle the vehicle
(3) More than 3 years but 10% of the cost of 12.0% of the cost of
not more than 4 years the vehicle the vehicle


1. Subs. by Act No. 11 0f 2010, w.e.f. 2-2-2010

2010 Andhra Pradesh Motor Vehicles Taxation Act, 1963 [Sch.VII

(1) (2) (3) (4)

(4) More than 4 years but 9.5% of the cost of 11.5% of the cost of
not more than 5 years the vehicle the vehicle
(5) More than 5 years but 9% of the cost of 11% of the cost of
not more than 6 years the vehicle the vehicle
(6) More than 6 years but 8.5% of the cost of 10.5% of the cost of
not more than 7 years the vehicle the vehicle
(7) More than 7 years but 8% of the cost of 10.0% of the cost of
not more than 8 years the vehicle the vehicle
(8) More than 8 years but 7.5% of the cost of 9.5% of the cost of
not more than 9 years the vehicle the vehicle
(9) More than 9 years but 7% of the cost of 9.0% of the cost of
not more than 10 years the vehicle the vehicle
(10) More than 10 years but 6.5% of the cost of 8.5% of the cost of
not more than 11 years the vehicle the vehicle
(11) More than 11 years but 6% of the cost of 8% of the cost of
not more than 12 years the vehicle the vehicle
(12) More than 12 years 5.5% of the cost of 7.5% of the cost of
the vehicle the vehicle]

1
[THE SEVENTH SCHEDULE
(See Fifth Proviso to sub-section (2) of Section 3)

Non-Transport vehicles meant for

carrying persons, owned by Companies/
Institution/Societies/Organisations upto a
S.No. Period /Class seating capacity of (10) ten in all and
of vehicle second or more personalized vehicles
upto a seating capacity of (10) ten in all
owned by an individual

(1) (2) (3)

1. At the time of registration 14% of the cost of the vehicle
of new Vehicles

1. Subs. by Act No. 11 0f 2010, w.e.f. 2-2-2010.

Sch.VII] Andhra Pradesh Motor Vehicles Taxation Act, 1963 2011

(1) (2) (3)

2. If the vehicle is already
registered and its age from
the month of registration
is :
(1) Not more than 2 years 13% of the cost of the vehicle
(2) More than 2 years but 12.5% of the cost of the vehicle
not more than 3 years
(3) More than 3 years but 12% of the cost of the vehicle
not more than 4 years
(4) More than 4 years but 11.5% of the cost of the vehicle
not more than 5 years
(5) More than 5 years but 11% of the cost of the vehicle
not more than 6 years
(6) More than 6 years but 10.5% of the cost of the vehicle
not more than 7 years
(7) More than 7 years but 10% of the cost of the vehicle
not more than 8 years
(8) More than 8 years but 9.5% of the cost of the vehicle
not more than 9 years
(9) More than 9 years but 9% of the cost of the vehicle
not more than 10 years
(10) More than 10 years but 8.5% of the cost of the vehicle
not more than 11 years
(11) More than 11 years but 8% of the cost of the vehicle
not more than 12 years
(12) More than 12 years 7.5% of the cost of the vehicle
2012 Andhra Pradesh Motor Vehicles Taxation Act, 1963
1
[THE EIGHT SCHEDULE
(See Sixth Proviso to sub-section (2) of Section 3)
Sl.No. Class of Vehicle Rate of Tax (In rupees)
(1) (2) (3)
(1) At the time of registration of
(a) E-Rickshaw Rs. 1000/-
(b) E-Cart Rs. 2000/-
(2) If the vehicle is already registered
in any State and its age from the
month of registration is :
(a) Less than 5 years
(i) E-Rickshaw Rs. 1000/-
(ii) E-Cart Rs. 2000/-
(b) More than 5 years
(i) E-Rickshaw Rs. 900/-
(ii) E-Cart Rs. 1800/-
Note : The life tax shall be collected at the time of Registration for these
vehicles for the period of use after five years.”
THE NINTH SCHEDULE
(See Seventh Proviso to sub-section (2) of Section 3)
Sl. Period Auto-rickshaws Goods vehicles up
No. carrying up to to 3,000 Kgs in
four persons in laden weight
all
(1) (2) (3) (4)
1. At the time of 2.0% of the cost 7.0% of the cost
registration of new of the vehicle of the vehicle
vehicle
2. If the vehicle is
already registered
and its age from the
month of registration
is :
(i) Less than 3years 1.5% of the cost 6.5% of the cost of
of the vehicle the vehicle
(ii) More than 3 years 1.4% of the cost 5.0% of the cost of
and less than 6 years of the vehicle of the vehicle
(iii) More than 6 years 1.3% of the cost 4.0% of th cost
and less than 9 years of the vehicle of the vehicle
(iv) More than 9 years 1.0% of the cost 1.0% of the cost of
of the vehicle the vehicle

Note : In respect of old in-use vehicles covered in this Schedule belonging to

the State of Andhra Pradesh, the lump-sum/life time tax shall be paid within
six months from 8th June, 2018. Until then, the existing quarterly tax shall
continue to be paid].
1. The Eighth and Ninth Schedules added by Act 27 of 2018 w.e.f. 08-06-2018.