E-bike cant be called bicycle: HC

Thane-based K K Rim Private Ltd had filed an application before the sales tax commissioner in 2007,contending that the bicycle produced by it,namely 8220;Model Matrix8221; also called 8220;E-Bike Matrix8221;,should be taxed at the rate of 4 per cent,like ordinary bicycles.

Model Matrix comes fitted with a battery,which can be used alongwith manual pedalling to run it. However,it had submitted a certificate given by Automotive Research Association of India,to the effect that it was not a motor-vehicle.

However,both the Sales Tax Commissioner as well as the Appellate Tribunal said that this product can not be deemed to be a bicycle,but would be taxed at the same rate as an electrical battery,i.e. 12 per cent.

The company filed appeal in the High Court.

The High Court upheld the argument of Sale Tax authorities,saying that 8220;if a vehicle runs with the help of any energy then the same cannot be termed as 8220;bicycle8221;.

8220;For the purpose of charging sales tax we have to consider the plain meaning of bicycle in common parlance. In common parlance a bicycle is a pedal driven,human powered,single track vehicle,having two wheels attached to a frame,one behind the other,8221; the court said.

The High Court also pointed out that if e-bike was to be taxed at 4 per cent,it would create a 8220;anomalous situation8221; because electrical batteries per se were taxed at 12 per cent.