The liability for motor vehicle tax persists regardless of usage location, provided vehicles are not reported as non-functional per statutory requirements.

JUDGMENT :

DHIRAJ SINGH THAKUR, CJ.

1. The present writ appeal has been preferred against the judgment and order dated 13.06.2023, passed in Writ Petition No.38285 of 2022, whereby the writ petition filed by the respondent petitioner has been allowed and a direction issued to refund an amount of Rs.22,71,700/- to the petitioner, which was collected in terms of the provisions of ANDHRA PRADESH MOTOR VEHICLES TAXATION ACT , 1963 (hereinafter referred to as the 'the Act of 1963'), and in particular Section 3 thereof.

2. At the outset, it would be apposite to reproduce the provisions of law which have a bearing on the present case. Section 3 of the Act of 1963 reads thus :

"3. Levy of tax on Motor Vehicles.-(1) The Government may, by notification, from time to time, direct that a tax shall be levied on every motor vehicle used or kept for use, 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."

Reference would also be apposite to Rule 12-A of the Andhra Pradesh Motor Vehicle Taxation Rules, which have been framed in exercise of the powers conferred under the Act of 1963.

"12-A. Liability for payment of tax in respect of motor vehicles kept for use.-For the purpose of Section 3 of the Act, a motor vehicle shall be deemed to be kept for use and is liable to tax unless the registered owner or the person having possession or control of the motor vehicle intimates in writing to the licensing officer before the commencement of the quarter for which tax is due that the motor vehicle shall not be used after expiry of the period for which tax has already been paid. The Licensing Officer shall on receipt of the intimation, acknowledge its receipt :

Provided that in the case of non-transport vehicles, of the owner of the vehicle fails to submit the stoppage report within the period specified above but subsequently gives an affidavit with full details to the effect that the vehicle was not existence or that it was already disposed of to another person and that he is no more in possession of it, or that the tax in respect of the vehicle was paid elsewhere in the same State or in some other State as such he is not liable for payment of tax in the jurisdiction of that Licensing Officer or proves to the satisfaction of the Licensing Officer that the vehicle has not been used, it may be deemed that the vehicle has not been kept for use."

3. A reference to the aforementioned rule would make it clear that a motor vehicle would be deemed to be kept for use and liable for tax unless an intimation in writing is given to the licensing officer that the motor vehicle shall not be used after expiry of the period for which tax has already been paid.

The first proviso to the said rule, however, envisages that if the owner of the non-transport vehicle fails to s