Levy of life time tax is within the competence of State Legislature.

(Writ Petition filed under Article 226 of the Constitution of India, to issue a Writ of Declaration, declaring Section 4 (1-A)(a) of Tamil Nadu Motor Vehicles Taxation Act, 1974 introduced by the Tamil Nadu Amendment Act 27 of 1998 as amended by Tamil Nadu Act 13 of 2003 by substituting Schedule III, Part I and Section 3-A levying Green Tax in respect of Vehicles mentioned under the 4th Schedule of the Tamil Nadu Motor Vehicles Taxation Act, 1974 as ultravires and violative of Article 14 of the Constitution of India in so far as it amounts to levy if life tax for the new registration of vehicle in so far as the petitioner is concerned.)

P. Sathasivam, J.

Since the issue raised in all these writ petitions is one and the same, they are being disposed of by the following common order.

2. The petitioner in W.P.No.35545 of 2004 is a senior Advocate and he seeks to issue a writ of declaration, declaring Section 4(1-A)(a) of Tamil Nadu Motor Vehicles Taxation Act, 1974, introduced by the Tamil Nadu Amendment Act 27 of 1998, as amended by the Tamil Nadu Act 13 of 2003, by substituting Schedule III, Part-I and Section 3-A levying Green Tax in respect of vehicles mentioned under the Fourth Schedule of the Tamil Nadu Motor Vehicles Taxation Act, 1974 as ultra vires and violative of Article 14 of the Constitution of India, in so far as it amounts to levy of life tax for new registration of vehicle of the petitioner is concerned.

3. For convenience, we shall refer the case of the petitioner in W.P.No. 35545 of 2004:

(a) According to the petitioner, he placed an order for purchase of SKODA Car with Millinem Motors, Chennai, and the dealer gave an invoice for Rs.11,00,000/-, being the cost of the vehicle, and while the petitioner approaching the second respondent for registration of the vehicle, the second respondent insisted to pay life tax of the vehicle as per the amendment made to the Motor Vehicles Taxation Act, 1974, as amended by Act 13 of 2003. The proposed life tax would come to Rs.69,000/- as per the latest amendment of the Taxation Act. In contrast, annual tax payable by the said vehicle is around Rs.1,000/-, which will account for a period of 15 years (life), not more than Rs.15,000/- if paid annually. There is a clear case of expropriatory tax levied by way of compulsion in respect of new vehicles registered in the State of Tamil Nadu on the basis of the value of the vehicle, instead of the unladen weight of the vehicle as per the established principles of the Motor Vehicle Taxation. Therefore, it has become necessary for the petitioner to challenge the validity of the amendment of the Tamil Nadu Motor Vehicles Taxation Act.

(b) Notwithstanding the above, the levy of a new tax called "Green Tax" under Section 3-A of the Tamil Nadu Motor Vehicles Taxation Act, proposing to levy an additional tax in respect of vehicles specified in the Fourth Schedule for Motor Cycles exceeding 15 years a sum of Rs.500/- and other vehicles a sum of Rs.1,000/-. Section 4(1-A(a) read with Schedule-III, Part-I of the Tamilnadu Motor Vehicles Taxation Act, 1974, as amended by Tamilnadu Act 13 of 2003, is violative of Article 14 of the Constitution of India and beyond the competency of State Legislature.

4. Similar averments have been made in the other writ petitions questioning lifetime tax.

5. Heard Mr. K.M. Vijayan, learned Senior Counsel, appearing in person, Mr.R. Natesan, and Mr. M. Krishnappan, learned counsel for petitioners and Mr. N.R. Chandran, learned Advocate General, Mr. A.L. Somayaji and Mrs. Bhader Syed, learned Additional Advocate Generals for respondents.

6. Mr.K.M. Vijayan, learned Senior Advocate, appearing in person, has submitted that "Green Tax" for the object of eliminating pollution is not enumerated in the entries either under List-I or List-II of the Seventh Schedule of the Constitution of India. The residuary power of Taxation under Article 248(2) read with Entry 97 in List-I enables the Parliament alone to levy such "G