The exemption under Section 9A of the Bihar and Orissa Motor Vehicles Taxation Act, 1930, can be granted only if it is found as a matter of fact that the motor vehicle has not been used in Bihar for a continuous period of not less than one calendar month since the tax or the instalment of tax was last paid.

G.C. Bharuka, J.

These writ applications have been filed by the petitioners, who are owners of different public service motor vehicles, for a direction commanding upon the respondents to dispose of their applications filed for grant of exemption from tax under Section 9A of the Bihar and Orissa Motor Vehicles Taxation Act, 1930 (hereinafter in short 'the Act' only) within a reasonable time and till the said applications are disposed of, respondents should issue provisional tax tokens for the current periods on acceptance of tax and allow the petitioners to ply their vehicles.

2. According to the petitioners their vehicles were not in use for the reasons stated in their respective writ applications and, therefore, under the provisions of the Act they are not liable to pay any tax. Accordingly, they had filed the applications for exemption but the respondents instead of disposing of the said applications promptly, are arbitrarily not accepting even the current tax because of which the petitioners are unable to use their vehicles on the road.

3. On behalf of the respondents, a comprehensive counter affidavit has been filed in one of the writ applications which has been sworn by the respondent State Transport Commissioner, himself. According to the respondents the applications for grant of exemption from tax are filed only to dupe the State revenue inasmuch as in most of the cases such applications are absolutely frivolous and are designed only to evade the tax in close conspiracy even with some of the unscrupulous officers of the department. It has been stated in the counter affidavit that on a detailed enquiry it has been found that out of 7239 surrendered vehicles seeking exemption from taxation, in the case of 2190 vehicles parking places whereof were physically checked and only 253 vehicles were in fact found at those places. This according to the respondents demonstrates frivolity of information concerning surrender of vehicles on the ground of non-user and as a matter of fact it can well be presumed that all such vehicles except in far and few genuine cases, are plied on road. Such unscrupulous methods employed by the vehicle owners have caused huge losses to the revenue of the State, which according to the respondent Commissioner is to the tune of about seven crores per annum. In the said back-ground it has been submitted by Mr. P.K. Shahi, learned Government Pleader No. VII, that if the prayer of the petitioners for grant of provisional tax token on accepting current taxes are accepted and they are allowed to ply their vehicles, it will be a hazardous task to recover the arrears of tax, in case their applications for exemption is found to be frivolous or unacceptable and is rejected as such.

4. In reply, the learned counsel appearing for the petitioners have submitted that it will be wholly unjust and improper if during the pendency of enquiry, even on payment of current taxes, the vehicles are not allowed to be plied and thereby causing irreparable loss to the owners. It has been also submitted that keeping in view the consistent orders passed by this Court ordering grant of provisional tax tokens on accepting current taxes and furnishing sufficient securities to the satisfaction of the Taxing Officers for the alleged arrears of tax, the interest of the State is fully safeguarded and, as such, the respondents should not object in allowing the petitioners to ply their vehicles. It has also been submitted that by creating legal impediments by non-grant of tax tokens for current periods, not only the vehicles owners are put to loss but this will also cause loss to the State revenue because for such periods no tax as well can be recovered.

5. After hearing the rival contentions we have given our anxious considerations to the entire aspects relating to the claims and counter claims raised in these writ applications.

6. Entry no. 57 of List II of 7th Schedule to the Constitution of India authorises the State Legislatures to