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IN THE HIGH COURT OF KERALA AT ERNAKULAM
BECHU KURIAN THOMAS, J.
Sharanya Vijay K., D/o. Vijayan - Petitioner
Versus
State of Kerala, Represented by Secretary, Law (Legislation -A) Department, Government Secretariat & Ors. - Respondents
WP(C) No. 41880 of 2022
Decided On : 26-03-2025
(A) Kerala Motor Vehicles Taxation Rules, 1975 - Rule 15A(2)(i) - Motor Vehicles Act, 1988 - Section 47 - Refund of motor vehicle tax - Petitioner sought refund of one-time tax after re-registration of vehicle in another state, which was denied on grounds of limitation - Court held that the period for filing refund application commences from the date of re-registration, not from the date of No Objection Certificate (NOC) - The rejection of the application on the basis of delay was erroneous. (Paras 2 , 10 , 14 )
(B) Limitation - The court clarified that the statutory right to refund cannot be extinguished by rules prescribing a limitation period if the application is filed within the prescribed time after re-registration. (Paras 13 )
Facts of the case:
The petitioner, a registered owner of a vehicle, sought a refund of tax paid in Kerala after re-registering the vehicle in Tamil Nadu. The refund application was rejected as belated based on the date of NOC.
Findings of Court:
The court found that the application was filed within the time limit after re-registration and directed reconsideration of the refund application.
Issues: The main issue was whether the limitation period for filing a refund application commences from the date of NOC or re-registration.
Ratio Decidendi: The court ruled that the refund application must be filed within one year from the date of re-registration, not from the date of NOC, as the latter does not constitute removal of the vehicle.
Result: Writ petition allowed.
JUDGMENT :
"When does the period for filing an application claiming refund of motor vehicle tax commence under Rule 15A(2)(i) of the Kerala Motor Vehicles Taxation Rules, 1975 ? "
The aforesaid question requires to be answered in this writ petition, filed under Article 226 of the Constitution of India, challenging an order declining to grant refund on the ground of bar of limitation.
2. Petitioner is the registered owner of a motor car which was initially registered in Kerala as KL-07/CR-1564. The said vehicle was registered on 16.03.2019, and a one time tax was paid which was valid till 2033. Subsequently, pursuant to a change of residence to Tamil Nadu, a No Objection Certificate [for short, NOC] was obtained on 12.10.2020 and the vehicle was taken to Tamil Nadu and re-registered on 10.03.2021 as TN-10/BM-4299. Thereafter, on 04.03.2022, an application was filed before the second respondent seeking refund of one time tax paid in Kerala. However, by the impugned order dated 06.10.2022, the refund application was rejected as belated.
3. Petitioner was denied refund on the ground of limitation by treating the date of NOC as the date of removal of the vehicle from Kerala as per Rule 15A(2)(i) of the Kerala Motor Vehicles Taxation Rules, 1975 [for short, the Rules]. Petitioner challenges the aforesaid order and contends that exemption from the limitation period during Covid-19 Pandemic, as ordered by the Supreme Court, was available and hence her application ought to have been treated as filed within the time prescribed.
4. A counter affidavit has been filed on behalf of the second respondent pointing out that the vehicle was assessed to a one time tax of Rs.57,320/- for the period from 12.03.2019 to 31.12.2033. Subsequently, after obtaining NOC, the vehicle was removed to Tamil Nadu, where it was re-registered. According to the second respondent, in view of the statutory prescription of one year time limit from the date of removal of the vehicle from Kerala, an application for refund as per R.15A(2)(i) of the Rules should have been submitted within one year from the date of NOC. Instead, petitioner submitted the application only on 04.03.2022, which was beyond the period prescribed. It was also pleaded that in view of the decision in Assistant Commissioner (CT) LTU, Kakinada and Others v. Glaxo Smithkline Consumer Health Care Limited AIR 2020 SC 2819 , it was not possible for any extension of time contrary to the time prescribed in the Statute.
5. I have heard Sri. Prasad Chandran, the learned counsel for the petitioner as well as Dr.Thushara James, the learned Senior Government Pleader.
6. Permission was obtained by the petitioner to remove the vehicle out of Kerala and be re-registered, as per the NOC dated 12.10.2020 and re-registration was effected in Tamil Nadu only on 10.03.2021. The refund application was filed on 04.03.2022. If the period is calculated from the date of NOC, the application for refund is belated, while, if the period is calculated from the date of re-registration, the application is within time.
7. To comprehend the process for claiming refund after re-registration of a vehicle in a new State, it is necessary to refer to the statutory provisions. Section 47 of the Motor Vehicles Act, 1988 , mandates that if a motor vehicle registered in one State is kept in another State, for a period exceeding twelve months, the owner of the vehicle should apply to the registering authority, within whose jurisdiction the vehicle then is, for the assignment of a new registration mark and should also present the certificate of registration to that registering authority. After assigning the vehicle a new registration mark of the transferee State and entering it in the certificate of registration, it shall be returned to the applicant. Communication shall also be given to the previous registering authority and records of the earlier registration of the vehicle shall also be transferred to the registering authority of the transferee
The period for filing a refund application for motor vehicle tax commences from the date of re-registration in another state, not from the date of No Objection Certificate.
The eligibility for tax refund is determined by re-registration date, not removal date.
Compliance with statutory requirements for tax exemption negates liability for payment.
The court mandates timely processing of refund applications in tax matters based on prior favorable assessments.
Compliance with prescribed time limits for refund/rebate applications under the Chhattisgarh Motor Vehicle Taxation Act, 1991 is crucial for entitlement to such refunds/rebates.
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