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2019 Supreme(Raj) 880
IN THE HIGH COURT OF RAJASTHAN AT JAIPUR BENCH
S. Ravindra Bhat, Sanjeev Prakash Sharma, JJ.
Aas Mohammad and Ors. - Appellants
Vs.
State of Rajasthan and Ors. - Respondents
D.B. Civil Writ Petition Nos. 11858 of 2019, 4103 of 2017, 4517 of 2017, 10416 of 2017, 12811 of 2017, 15875 of 2017, 15876 of 2017, 16087 of 2017, 16716 of 2017, 16717 of 2017, 16968 of 2017, 17748 of 2017, 18076 of 2017, 18967 of 2017, 18968 of 2017, 23182 of 2017, 595 of 2018, 596 of 2018, 599 of 2018, 794 of 2018, 797 of 2018, 1418 of 2018, 2379 of 2018, 2456 of 2018, 2459 of 2018, 2461 of 2018, 2849 of 2018, 2850 of 2018, 3510 of 2018, 3930 of 2018, 4303 of 2018, 4315 of 2018, 4624 of 2018, 4625 of 2018, 4747 of 2018, 4754 of 2018, 4755 of 2018, 4762 of 2018, 4768 of 2018, 4787 of 2018, 5143 of 2018, 5144 of 2018, 5145 of 2018, 5362 of 2018, 5526 of 2018, 5527 of 2018, 5528 of 2018, 5529 of 2018, 5530 of 2018, 5597 of 2018, 5672 of 2018, 5749 of 2018, 5750 of 2018, 5751 of 2018, 5825 of 2018, 5829 of 2018, 5872 of 2018, 5932 of 2018, 5934 of 2018, 5938 of 2018, 5950 of 2018, 5952 of 2018, 5960 of 2018, 5961 of 2018, 5962 of 2018, 6040 of 2018, 6041 of 2018, 6152 of 2018, 6277 of 2018, 6411 of 2018, 6412 of 2018, 6435 of 2018, 6449 of 2018, 6508 of 2018, 6509 of 2018, 6514 of 2018, 6535 of 2018, 6583 of 2018, 6587 of 2018, 6604 of 2018, 6605 of 2018, 6606 of 2018, 6770 of 2018, 6771 of 2018, 6772 of 2018, 6773 of 2018, 6826 of 2018, 6827 of 2018, 6878 of 2018, 7098 of 2018, 7160 of 2018, 7244 of 2018, 7245 of 2018, 7246 of 2018, 7290 of 2018, 7301 of 2018, 7322 of 2018, 7325 of 2018, 7328 of 2018, 7366 of 2018, 7393 of 2018, 7426 of 2018, 7429 of 2018, 7431 of 2018, 7433 of 2018, 7454 of 2018, 7455 of 2018, 7456 of 2018, 7457 of 2018, 7685 of 2018, 7686 of 2018, 7701 of 2018, 7791 of 2018, 7946 of 2018, 7947 of 2018, 8050 of 2018, 8181 of 2018, 8327 of 2018, 8431 of 2018, 8690 of 2018, 9273 of 2018, 9370 of 2018, 9374 of 2018, 9728 of 2018, 9933 of 2018, 9985 of 2018, 9986 of 2018, 10026 of 2018, 10203 of 2018, 10233 of 2018, 10984 of 2018, 11124 of 2018, 11309 of 2018, 11310 of 2018, 11409 of 2018, 11636 of 2018, 11844 of 2018, 11845 of 2018, 11846 of 2018, 11887 of 2018, 11890 of 2018, 12018 of 2018, 12029 of 2018, 12093 of 2018, 12285 of 2018, 12802 of 2018, 12803 of 2018, 14007 of 2018, 14009 of 2018, 14253 of 2018, 14333 of 2018, 14505 of 2018, 14538 of 2018, 14616 of 2018, 14789 of 2018, 15118 of 2018, 15172 of 2018, 15404 of 2018, 15773 of 2018, 15785 of 2018, 15787 of 2018, 15788 of 2018, 15835 of 2018, 15891 of 2018, 16751 of 2018, 17744 of 2018, 18432 of 2018, 18563 of 2018, 18990 of 2018, 19028 of 2018, 20038 of 2018, 20366 of 2018, 20543 of 2018, 20550 of 2018, 20648 of 2018, 21213 of 2018, 22100 of 2018, 22279 of 2018, 22602 of 2018, 23373 of 2018, 23474 of 2018, 23488 of 2018, 23586 of 2018, 23592 of 2018, 23669 of 2018, 23907 of 2018, 23940 of 2018, 23956 of 2018, 23959 of 2018, 24095 of 2018, 24281 of 2018, 24442 of 2018, 24552 of 2018, 24573 of 2018, 24743 of 2018, 24886 of 2018, 24899 of 2018, 24900 of 2018, 25649 of 2018, 25650 of 2018, 25651 of 2018, 25795 of 2018, 25985 of 2018, 26003 of 2018, 26053 of 2018, 26103 of 2018, 26451 of 2018, 26553 of 2018, 26626 of 2018, 26964 of 2018, 26989 of 2018, 27231 of 2018, 27302 of 2018, 27377 of 2018, 27386 of 2018, 27388 of 2018, 27496 of 2018, 27797 of 2018, 27798 of 2018, 27890 of 2018, 238 of 2019, 420 of 2019, 678 of 2019, 926 of 2019, 965 of 2019, 967 of 2019, 969 of 2019, 991 of 2019, 1033 of 2019, 1236 of 2019, 1241 of 2019, 1374 of 2019, 1434 of 2019, 1445 of 2019, 1446 of 2019, 1616 of 2019, 1617 of 2019, 1622 of 2019, 1629 of 2019, 1634 of 2019, 1635 of 2019, 1670 of 2019, 1676 of 2019, 1851 of 2019, 1996 of 2019, 2002 of 2019, 2115 of 2019, 2384 of 2019, 2514 of 2019, 2778 of 2019, 3099 of 2019, 3269 of 2019, 3344 of 2019, 3359 of 2019, 3456 of 2019, 3555 of 2019, 3617 of 2019, 3911 of 2019, 3912 of 2019, 3913 of 2019, 3914 of 2019, 3919 of 2019, 3921 of 2019, 3922 of 2019, 4055 of 2019, 4096 of 2019, 4237 of 2019, 4256 of 2019, 4263 of 2019, 4436 of 2019, 4455 of 2019, 4457 of 2019, 4569 of 2019, 4686 of 2019, 4746 of 2019, 4855 of 2019, 4860 of 2019, 4869 of 2019, 4895 of 2019, 4896 of 2019, 4915 of 2019, 5008 of 2019, 5077 of 2019, 5176 of 2019, 5199 of 2019, 5254 of 2019, 5269 of 2019, 5282 of 2019, 5318 of 2019, 5322 of 2019, 5339 of 2019, 5340 of 2019, 5434 of 2019, 5446 of 2019, 5580 of 2019, 5634 of 2019, 5653 of 2019, 5674 of 2019, 5787 of 2019, 5802 of 2019, 5836 of 2019, 5866 of 2019, 5873 of 2019, 5888 of 2019, 5894 of 2019, 6141 of 2019, 6147 of 2019, 6162 of 2019, 6163 of 2019, 6167 of 2019, 6172 of 2019, 6185 of 2019, 6188 of 2019, 6209 of 2019, 6344 of 2019, 6352 of 2019, 6463 of 2019, 6493 of 2019, 6525 of 2019, 6560 of 2019, 6649 of 2019, 6656 of 2019, 6722 of 2019, 6751 of 2019, 7001 of 2019, 7073 of 2019, 7092 of 2019, 7160 of 2019, 7176 of 2019, 7271 of 2019, 7464 of 2019, 7506 of 2019, 7592 of 2019, 7759 of 2019, 7775 of 2019, 7788 of 2019, 7950 of 2019, 8034 of 2019, 8069 of 2019, 8109 of 2019, 8279 of 2019, 8306 of 2019, 8365 of 2019, 8577 of 2019, 8875 of 2019, 8889 of 2019, 8991 of 2019, 9260 of 2019, 9308 of 2019, 9356 of 2019, 9893 of 2019, 9894 of 2019, 10021 of 2019, 10253 of 2019, 10608 of 2019, 10777 of 2019, 10778 of 2019, 10832 of 2019, 10833 of 2019, 10835 of 2019, 11099 of 2019, 11152 of 2019, 11202 of 2019, 11229 of 2019, 11258 of 2019, 11340 of 2019, 11453 of 2019, 11572 of 2019, 11713 of 2019, 11741 of 2019, 11748 of 2019, 11750 of 2019, 11812 of 2019, 11829 of 2019, 11830 of 2019, 12120 of 2019, 12223 of 2019 and 11642 of 2017
Decided On : 22-08-2019
Subject
Taxation Law - Motor Vehicle Taxation
Act Referred
CONSTITUTION OF INDIA : Art.14, Art.19(1)(g), Art.21, Art.301
MOTOR VEHICLES ACT : S.66
MOTOR VEHICLES TAXATION ACT : S.3, S.4(a), S.4(b), S.4(c), S.4(1)(a), S.4(1)(e)
RAJASTHAN MOTOR VEHICLES RULES : R.42, R.5.9
REORGANISATION ACT : S.119
Headnote
Constitution of India, 1950 - Articles 14, 19, 301 and 21 - Motor Vehicles Taxation Act, 1951 - Sections 3, 4, 4B and 4C - Motor Vehicles Act, 1988 - Sections 66, 3 and 2-A - States Reorganisation Act, 1956 - Sections 119 and 19 - District Transport - Officer appointed under law time being in force or any officer authorized by State Government is designated by to be Taxation Officer for purposes of Act and Rules deals with imposition of tax; it constitutes charging section - validity of that provision was considered and upheld by Supreme Court in case of Automobiles wherein validity of provision was upheld - Later were substituted subsequently by provisions relating to special road tax - Initially lump sum tax was introduced in was enacted in relation to imposition of lump-sum tax - A further proviso to was introduced - Using that power State by notification imposed on certain motor vehicles registered or assigned in State on or after compulsorily lump sum tax - All categories of four-wheeler goods vehicles with gross vehicle weight of more than were so taxed - Afterwards, State Government by notification notified that certain motor vehicles registered had to compulsorily pay lump sum tax - This was enhanced by notification while stating that all categories of goods vehicle with gross weight of more than were included for lump sum tax – Held , Court notices that under proviso to Rule, owner of vehicle or chassis has option to secure assessment of cost of vehicle in same manner as cost is assessed at current price of a vehicle of similar type prevailing on in which tax is due - In opinion of Court as upheld in Federation of Mining Association of minimizes chances of anomaly in determination of basis of cost which in turn determines tax - In opinion of Court, moreover, exhaustive exercise of cost determination at current rate and also having regard to age of vehicle, eliminates likely chances of a high value - Thus, Court discerns no facial perversity or arbitrariness warranting interference - For these reasons, it is held that there is no arbitrariness or unreasonableness in method of valuation of vehicle, prescribed by Rule - Accordingly Dismissed.
For the Appellant : Anita Aggarwal, Laxmikant, Praneet Sharma, Sameer Jain, Mahi Yadav, Daksh Pareek, Arjun Singh, Dhruv Atre, Sangeeta Sharma, Kuldeep Aswal, Ashok Kumar Meena, Surendra Singh, R.P. Garg, Shafat Rahim Khan, Azad Ahmed, P.C. Dewanda, Sushil Pujari, Sanjay Khan, Vijay Singh Yadav, Vivek Choudhary, Balbeer Singh Beniwal and Kailash Choudhary, Shefali Sharma on behalf of Lokesh Sharma
For the Respondents:M.S. Singhvi, Advocate General assisted by Sheetanshu Sharma, Raunak Singhvi and Darsh Pareek
JUDGMENT :
S. Ravindra Bhat, J.
1. All these petitions challenge the validity of a notification dated 8.3.2017 (hereafter "the impugned notification") as violative of Articles 14, 19(1)(g) and 21 of the Constitution of India. The impugned notification compels transport vehicles which weigh between 3000 kgs and 16500 kgs to pay a one-time (hereafter "lump sum" or "life time") motor vehicle tax.
2. The brief facts are that in the State of Rajasthan, motor vehicles are taxed by virtue of the Motor Vehicles Taxation Act, 1951 and rules framed thereunder. The scheme of taxation, i.e. the rate of tax and the general regime of collection and exemptions are governed by rules and notifications issued from time to time.
3. The District Transport Officer appointed under the law time being in force or any officer authorized by the State Government is designated, by Section 3 to be the Taxation Officer for the purposes of the Act and Rules. Section 4 of the Act deals with imposition of tax; it constitutes the charging section. The validity of that provision was considered and upheld by the Supreme Court in the case of Automobiles Transport (Rajasthan) Ltd. Vs. State of Rajasthan, AIR 1962 SC 1406, wherein the validity of the provision was upheld. Later, Section 4 was amended in the year 1997; Sections 4A and Section 4B were substituted subsequently by the provisions relating to special road tax.
4. Initially lump sum tax was introduced in the year 2005; Section 4C was enacted in relation to imposition of lump-sum tax. A further proviso to Section 4-C was introduced in the year 2007. Using that power (under proviso to Section 4C) the State, by notification dated 14.07.2014 imposed on certain motor vehicles registered or assigned in the State on or after 1.8.2014 a compulsorily lump sum tax. All categories of four-wheeler goods vehicles with gross vehicle weight of more than 3000 kgs (and up to 7500 kgs) were so taxed. Afterwards, the State Government by notification dated 9.3.2015 notified that certain motor vehicles registered on or after 1.4.2007 had to compulsorily pay lump sum tax. This was enhanced by notification dated 8.3.2016; while stating that all categories of goods vehicle with gross weight of more than 7500 kgs. and upto 12000 kgs., were included for lump sum tax.
5. By the impugned notification dated 8.3.2017 all categories of four wheel goods vehicle with gross vehicle weight more than 3000 kgs, and weighing upto 16500 kgs, are to be assessed for lump sum tax taxation.
6. It is argued on behalf of the petitioners that tax is a compulsory exaction of money by the State for a specific service rendered. The levy of tax is for the purpose of general review which when collected forms public revenue of the State. An element of fairness and reasonableness is a necessary ingredient for fixing the tax liability. It is argued that the levy of a lump sum tax on ageing vehicles which cannot ply in near future is unfair, arbitrary and unreasonable. Counsel urge that no public purpose is served by collecting such lump sum tax, which would be unreasonable and excessive, given that those vehicles would have paid tax annually for a considerable period of their motorable lives. Lump-sum payment of tax on vehicles which are more than 7 years old is unjust especially when they cannot operate for much longer on the road. It is argued that no public interest would be served nor it creates any expedient means for serving the public purpose.
7. Mr. Sameer Jain and Ms. Anita Aggarwal, counsel for the petitioners argue that the notification has been issued only with a view to enrich government coffers and provide the State with revenue unjustly, arbitrarily and without any basis de-hors the principle role of the State as a welfare State. The notification is thus ultra vires.
8. It is also urged that the impugned notification is arbitrary because the calcul
