( 1 ) THIS appeal is against the judgment of the High Court dated 8-10-1996. By this judgment it has been held that the vehicle owned by the respondent was not liable to pay road tax under the Orissa Motor Vehicles taxation Act of 1975 because it did not have, during the relevant period, a stage carriage permit. The High Court has held that under Section 66 of the motor Vehicles Act, 1988 no owner of a motor vehicle can use or permit the use of the vehicle as a transport vehicle in any public place unless it has the necessary permit. The High Court has held that under Schedule I of the orissa Motor Vehicles Taxation Act, tax has to be paid in respect of stage carriage vehicles on the basis of the distance they are permitted to run. The high Court has held that in the absence of any permit it is not possible to calculate the quantum of tax payable.

( 2 ) IN order to consider the correctness of this judgment it becomes necessary to look at the relevant provisions of the Orissa Motor Vehicles taxation Act. Section 2 (b) defines a motor vehicle as any vehicle which is mechanically propelled and adapted for use upon roads whether the power of propulsion is transmitted from an external or internal source. It is an admitted position that the respondents vehicle is a motor vehicle within the meaning of this definition.

( 3 ) SECTION 3 reads as follows:

"3. Levy of tax. (1) Subject to the other provisions of this Act, there shall be levied on every motor vehicle used or kept for use within the State a tax at the rate specified in Schedule I. (2) The State Government may by notification, from time to time,. increase the rate of tax specified in Schedule I: provided that such increase shall not exceed fifty per cent of the rate specified in Schedule I. (3) All references made in this Act to Schedule I shall be construed as references to Schedule I as for the time being amended in exercise of the powers conferred by this section. Explanation. An owner who keeps a transport vehicle for which the certificate of fitness and the certificate of registration are valid, or an owner who keeps any other motor vehicle, of which the certificate of registration is valid, shall, for the purpose of this Act, be presumed to keep such vehicle for use: provided that if the Taxing Officer finds a motor vehicle having been used on any day during the period for which the registration certificate of a vehicle has been suspended or cancelled under the relevant provisions of the motor Vehicles Act such vehicle shall be deemed to have been kept for use for the whole period without payment of tax. "

( 4 ) THUS, it has to be seen that tax is levied on every motor vehicle which is "used or kept for use". The Explanation makes it very clear that if a transport vehicle has a valid certificate of fitness and a valid certificate of registration then it will be presumed that the vehicle is kept for use. This presumption arises in respect of all motor vehicles, whether they are light motor vehicles or transport vehicles and would also include vehicles which do not have a stage carriage permit.

( 5 ) SECTION 4 provides that the tax is to be paid in advance by the registered owner or person having possession or control of the vehicle.

( 6 ) SECTION 10 which is also relevant reads as follows:

"10. Prior intimation of temporary discontinuance of use of a vehicle. (1) Whenever any motor vehicle is intended not to be used for any period, the registered owner or person having possession or control thereof shall on or before the date of expiry of the term for which tax has been paid, deliver to the Taxing Officer, an undertaking duly signed and verified in the prescribed form and manner specifying the period aforesaid and the place where the motor vehicle is to be kept along with such other particulars as may be prescribed and the registration certificate, fitness certificate, permit and tax token, then current and shall from time to time by delivering, further undertakings give pr