AUTOMOTIVE MANUFACTURERS (P) LTD. ETC. vs GOVT. OF ANDHRA PRADESH AND ORS. ETC.

The Supreme Court held that under Section 3 of the Andhra Pradesh Motor Vehicles Taxation Act (5 of 1963), a chassis can be considered 'used' even without a body attached, as its operation on public roads suffices to attract tax liability. The Court clarified that the exemption under item 4 of the notification is limited to journeys made specifically for the purpose of attaching a body, which was not applicable in this case. The appeals by the Automotive Manufacturers and Ashok Leyland were dismissed, affirming the tax imposition as valid.