The Andhra Pradesh Tax on Entry of Motor Vehicles into Local Areas Act, 1996

Short title, extent and commencement:

1. (1) This Act may be called the Andhra Pradesh Tax on Entry of Motor Vehicles into Local Areas Act, 1996.
2. (2) It extends to the whole of the State of Andhra Pradesh.
3. (3) It shall be deemed to have come into force on the 1st day of April, 1996.

Definitions: In this Act, unless the context otherwise requires,—

1. (a) “Accessories” means any attachment to a motor vehicle or any part of a motor vehicle, which is not treated as a spare part, but which is meant for use in connection with the motor vehicle and includes air-conditioning unit, stereo or any other audio-visual equipment;
2. (b) “Assessing authority” means any officer of the Commercial Taxes Department not below the rank of an Assistant Commercial Tax Officer or any other officer authorised by the Government to perform the functions of an assessing authority under this Act;
3. (c) “General Sales Tax Act” means the Andhra Pradesh General Sales Tax Act, 1957;
4. (d) “Government” means the State Government of Andhra Pradesh;
5. (e) “Importer” means a person who brings a motor vehicle into a local area from any place outside the State for use or sale therein and who owns the vehicle at the time of entry of the vehicle into a local area or a person who holds the licence for the registration of such motor vehicle;
6. (f) “Local area” means the area within the limits of a local authority (including a cantonment board) specified in or under the Andhra Pradesh Municipalities Act, 1965, the Hyderabad Municipal Corporations Act, 1955, the Andhra Pradesh Gram Panchayats Act, 1964 or the Cantonments Act, 1924;
7. (g) “Local authority” means a Municipal Corporation, a Municipal Council, a Gram Panchayat, a Mandal Praja Parishad, a Zilla Praja Parishad or a Cantonment Board;
8. (h) “Motor vehicle” means a motor vehicle as defined in clause

1. (28) of section 2 of the Motor Vehicles Act, 1988;
   • (i) “Person” includes a company or body or association or body of individuals, whether incorporated or not, or a firm;
   • (j) “Purchase value” means the value of motor vehicle, as ascertained from the purchase invoice and includes insurance, excise duties, countervailing duties, sales tax, transport fee, freight charges and all other costs incurred by the importer in respect of the motor vehicle till the date of its entry into a local area: Provided that where the purchase value of a motor vehicle is not ascertainable on account of non-availability or non-production of the invoice, the purchase value shall be the value or price as determined in such manner as may be prescribed;
   • (k) “Tax” means the tax levied and collected under this Act.

Levy of tax

1. (1) Subject to the provisions of this Act, there shall be levied and collected a tax on the entry of any motor vehicle into any local area for use or sale therein, which is liable for registration in the State under the Motor Vehicles Act, 1988.
2. (2) The tax shall be levied on the purchase value of the motor vehicle at such rate, not exceeding twenty per centum, as may be notified by the Government from time to time.
3. (3) The tax levied under sub-section
4. (1) shall be paid by the importer in such manner and within such time as may be prescribed:

Registration of motor vehicles Registration of motor vehicles

1. (1) Notwithstanding anything contained in the Motor Vehicles Act, 1988, no registering officer shall register any motor vehicle under that Act, which is liable for tax under this Act, unless the importer produces a certificate signed by the assessing authority stating that the tax has been paid in respect of such vehicle.
2. (2) Nothing in sub-section
3. (1) shall apply to the registration of a motor vehicle under the Motor Vehicles Act, 1988, if the entry of said motor vehicle into the local area was effected under a temporary registration or for a temporary period.

Tax to be in addition to existing taxes: The tax leviable under this Act shall be in addition to any tax levied or leviable on the motor vehicle under the Andhra Pradesh Motor Vehicles Taxation Act, 1963 or any other law for the time being in force.

Power to exempt:

1. (1) The Government may, by notification in the Andhra Pradesh Gazette, make an exemption, or reduction in rate, in respect of the tax payable under this Act by any specified class of persons or in respect of such motor vehicles or class of motor vehicles as may be specified in the said notification.
2. (2) Any notification issued under sub-section
3. (1) may be issued so as to be retrospective to any date not earlier than the 1st April, 1996 and such notification shall have effect as if it were issued under this Act.

Power to make rules

1. (1) The Government may, by notification, make rules to carry out all or any of the purposes of this Act.
2. (2) Every rule made under this Act shall immediately after it is made, be laid before the Legislative Assembly of the State 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, and if, before the expiration of the session in which it is so laid or the session immediately following the Legislative Assembly agrees in making any modification in the rule or in the annulment of the rule, the rule shall from the date of publication of such modification or annulment in the Andhra Pradesh Gazette have effect only in such modified form or shall 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.

Power of search and seizure

1. (1) Any officer empowered by the Government in this behalf may, if he has reason to believe that the provisions of this Act are being contravened, enter and search any place where the motor vehicle is kept or likely to be kept and may seize any motor vehicle in respect of which he suspects that the tax is not paid.
2. (2) The provisions of the Code of Criminal Procedure, 1973 relating to searches and seizure shall so far as may be, apply to searches and seizure under this section.

Penalty

1. (1) If the assessing authority is satisfied that the importer has, without reasonable cause, failed to pay the tax within the time prescribed under section 5, the assessing authority may direct that the importer shall pay, by way of penalty, in addition to the tax and interest, a sum not exceeding twice the amount of tax due: Provided that no order shall be passed by the assessing authority under this sub-section without giving the importer a reasonable opportunity of being heard.
2. (2) The penalty imposed under sub-section
3. (1) shall be paid by the importer in addition to the tax and interest within such time as may be specified in the notice issued by the assessing authority.

Offences by companies

1. (1) Where an offence under this Act has been committed by a company, every person who at the time the offence was committed, was in charge of, and was responsible to the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
2. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation: For the purposes of this section:
   • (a) "company" means any body corporate, and includes a firm or other association of individuals; and
   • (b) "director" in relation to a firm means a partner in the firm.

Cognizance of offences:

1. (1) No court shall take cognizance of any offence punishable under this Act except with the previous sanction of the Registering Authority or such other officer as may be authorised by the Government in this behalf.
2. (2) No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the First Class shall try any offence punishable under this Act.

Compoundability of offences:

1. (1) Any offence punishable under this Act may, before or after the institution of prosecution, be compounded by the Registering Authority or such other officer as may be authorised by the Government in this behalf, on payment of such amount as may be prescribed.
2. (2) Where an offence has been compounded under sub-section (1), the offender, if in custody, shall be discharged and no further proceedings shall be taken against him in respect of the offence so compounded.

Protection of action taken in good faith:

1. (1) No suit, prosecution or other legal proceeding shall lie against the Government or any officer or authority of the Government for anything which is in good faith done or intended to be done in pursuance of this Act or any rule or order made thereunder.
2. (2) No suit or other legal proceeding shall lie against the Government or any officer or authority for any damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of this Act or any rule or order made thereunder.

Power to remove difficulties:

1. (1) If any difficulty arises in giving effect to the provisions of this Act, the Government may, by order published in the Andhra Pradesh Gazette, make such provisions not inconsistent with the provisions of this Act as appear to them to be necessary or expedient for removing the difficulty.
2. (2) Every order made under this section shall, as soon as may be after it is made, be laid before the Legislative Assembly of the State.

-1 15. Laying of rules and notifications before the Legislative Assembly

1. (1) Every rule made and every notification issued under this Act shall, immediately after it is made or issued, be laid before the Legislative Assembly of the State 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, and if, before the expiration of the session in which it is so laid or the session immediately following, the Legislative Assembly agrees in making any modification in the rule or in the notification or the Legislative Assembly decides that the rule or notification should not be made or issued, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; Provided that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification.