The registering authority cannot withhold vehicle registration for non-payment of tax under the Motor Vehicles Act, 1939.

1. Calicut-Wynad Motor Service (Private) Limited, the petitioner, has contributed much to the motor vehicle "jurisprudence." (See Calicut Wynad Motor Service (P) Ltd. v. Government of Kerala, 1959 K. L. J 410, Calicut Wynad Motor Service (P) Ltd., v. R T. A., 1957 K. L. T. 58, Calicut Wynad Motor Service (P) Ltd. v. S.T.A.T, 1957 K. L. J. 565 and Calicut Wynad Motor Service (P) Ltd. v. S. T. A. T., A. I. R.1974 Kerala 129). It has now come to the court to protect a cause common to many in the industry facing the same difficulty.

2. The petitioner applied for registration of a motor vehicle. (No date is seen in the application Ext. P1 nor is it indicated in the index to the Original Petition. Such inadequacies in the preparation of the original petition are of such a distressing proportion that the office is unable to detect them while hurriedly processing many petitions a day, and quite a few even for the 'afternoon motion'.) The registration fee is evidently remitted on 21-7-1986. (The chalan has necessarily to contain the date. The Treasury officials insist on the same.) The application was, however, returned by the registering authority with a note, Ext. P 3, reading:

"Returned to the applicant. He is directed to re-submit the documents for registration with Excise duty payment certificate from Central Excise Department as per the order No C 6-15619/Tc (86) dt. 30-5-86 of the Transport Commissioner Trivandrum."

3. The petitioner challenges the legality of the action of the registering authority. Reliance is placed on S.27 of the Motor Vehicles Act, 1939, which deals with the grounds on which the registration or the renewal thereof could be refused. That section reads:

"27. Refusal of registration or renewal of the certificate of registration:

The registering authority may, by order, refuse to register any motor vehicle, or renew the certificate of registration in respect of a motor vehicle (other than a transport vehicle), if in either case the vehicle is mechanically defective or fails to comply with the requirements of Chapter V or of the rules made thereunder, or if the applicant fails to furnish particulars of any previous registration of the vehicle or furnish inaccurate particulars in the application for registration of the vehicle or, as the case may be, for renewal of the certificate of registration thereof and the registering authority shall furnish the applicant whose vehicle is refused registration, or whose application for renewal of the certificate of registration is refused, a copy of such order, together with the reasons for such refusal".

4. The writ petition was admitted on 31-7-1986. The learned Government Pleader who appeared on behalf of the Government and argued the matter, attempted to defend the action of the respondents on the basis of a circular issued by the Transport Commissioner, Trivandrum, along with a demi-official letter addressed by the Collector, Customs and Central Excise Wing, Cochin. It is useful to extract that letter and endorsement made by the Transport Commissioner:

"Dear Sri. Vidhuadharan,

Sub:- Request for insistence on duty payment documents before registration of vehicle.

Under the Finance Act 1986, Central Excise duty has been imposed on bodies built for Motor Vehicles. The units engaged in the body building for Motor Vehicles are being brought under Central Excise Control.

2. As you may be aware, the body building activity is undertaken by small independent body builders spread all over the state, further the body building takes sufficient time. It will be difficult to keep watch over the clearance of body building by all builders.

3. In collection of excise duty, your organisation can be of great help as all vehicles have to get registration. I therefore request you to issue suitable instructions to all the Regional Transport Officers, in the State of Kerala to insist for the production of Central Excise duty paid documents while the vehicle is presented for registration in t