2019 Supreme(Ker) 521

IN THE HIGH COURT OF KERALA AT ERNAKULAM
S.V. BHATTI, J.
Sabu Johny - Appellant
Versus
State Of Kerala - Respondent
WP(C).No.1824, 11585, 20193, 21595, 24482, 25170, 29183, 33231 of 2018
Decided on : 16-07-2019

IMPORTANT POINTS
• The registration certificate issued by the Assistant Registering Authority, Puducherry as on today is valid and there cannot be two registrations for a vehicle with same engine number, chasis number etc. unless and until the registration already held by the vehicle is cancelled under Section 55(5) of the Act.
• A non-State registered/non-transport vehicle owner if keeps vehicle in Kerala beyond the permitted period i.e., stays beyond thirty days, then the incidence of tax under Section 3(6) of Act 1976 is attracted and the respondents are entitled to enquire into levy and recover the vehicle tax in accordance with Anneuxre III. Motor Vehicle Taxation Act, 1976 permits plying vehicles without the incidence of tax for a period of thirty days from the date of entry into State.
• On receipt of information the registering authority -Puducherry puts the owner on notice and thereafter passes orders cancelling the registration. The said approach is track-1 approach under Act, 1988 available to respondents and tract-II is independent, arising under Section 3(6) of Act 1976, where for keeping the vehicles beyond thirty days, vehicle tax as per Annexure III can be levied and collected.

Headnote:

Constitution of India -Entries 57 and 35 of List II and III of Seventh Schedule of Constitution of India-The Motor Vehicles Act, 1988-The Central Motor Vehicles Rules, 1989-The Kerala Motor Vehicles Taxation Act, 1976 -The Kerala Motor Vehicles Rules- The vehicle, if is kept in the State of Kerala beyond thirty days the incidence under Section 3(6) read with Schedule and Annexure III is attracted and vehicle tax payable under Section 3(6) of Act 1976.

Statement of facts:

The vehicle registered at Puduchery using fabricated address with an intention to use at Kerala State permanently by evading road tax which is comparatively higher at Kerala-Liable to remit tax as per section 3 of Kerala Motor Vehicle Taxation Act, 1976 - In contravention of Sections 40 and 49 of Act 1988, registered the vehicle in Puducherry and plying the vehicle in State of Kerala particularly without paying vehicle tax.

Finding of the case:

(a) Section 3(6) of Motor Vehicles Taxation Act, 1976 is within the competence of State legislature and Section 3(6) is not in any manner repugnant to Chapter IV of Motor Vehicles' Act, 1988 or ultra viresAct 1976. Section 3(6) therefore is valid and legal.

(b) The registration of a non-transport vehicle and payment of registration fee under Act 1988 or payment of motor vehicle tax under a State legislature continues to be valid so long as the vehicle is kept and used in the State in which it is registered. These vehicles if enter State of Kerala and stay beyond the period stipulated by the State enactment, the vehicle is required to pay vehicle tax as per Section 3(6) read with Annexure III of Schedule of Act 1976.

(c) The impugned orders calling upon the petitioners to register the subject vehicles in State of Kerala and pay life tax are set aside as illegal, arbitrary and violative of principles of natural justice, the matters are restored to the file of respective Regional Transport Officer/respondents for consideration and disposal by keeping in view the principles stated supra.

(d) The writ petitions filed challenging show cause notices are given four weeks' time from the date of receipt of copy of this judgment to file objections against proposed tax levy and are entitled to show that, firstly, the vehicle is not kept for use in State of Kerala beyond thirty days and, alternatively, vehicle is not at all used or kept for use in State of Kerala. The objection raised against proposed action is examined in detail and orders as are warranted by the circumstances of the case are passed. Respondents keeping in view the scope, character and purpose of incidence of vehicle tax, consider the objections and pass detailed orders, in all the matters now restored to file as well as where time is granted for filing objections to show cause notice.

Result: Disposed of