Strict construction of tax laws and the requirement for vehicles to be owned by educational institutions to claim concessional tax rates.

P. JYOTHIMANI,J.

The writ appeal is directed against the impugned order of the learned Judge on the writ side of this Court, by which the learned Judge, while dismissing the writ petition filed by the appellant, has directed the appellant to pay the differential rate of tax and penalty applicable to the private service vehicles within three months.

2. The appellant, Lakshmi Vidhya Sangam is stated to be a Society registered under the Tamil Nadu Societies Registration Act XXI of 1860 for certain activities including establishing and maintaining TV Sundaram Iyengar Elementary School, TV Sundaram Iyengar Higher Secondary School, TVS Lakshmi Matriculation Higher Secondary School and also colleges, universities, etc. The appellant has established four schools, viz., T.V.S.Lakshmi Matriculation Higher Secondary School, T.V.S. Higher Secondary School, Lakshmi School and T.V.S. Primary School. According to the appellant, all the said schools are governed by the appellant Society. In the said schools, nearly 5,500 students are studying and for the convenience of the students, it is stated that the appellant/petitioner has acquired 13 vehicles which are as follows:

i. Vehicle No.TN 58/D-3339

ii. Vehicle No.TAU/3355

iii. Vehicle No.TAY/1299

iv. Vehicle No.TN 59/A-3456

v. Vehicle No.TN 59/A-4000

vi. Vehicle No.TAU/9819

vii. Vehicle No.TN 58/B-5969

viii. Vehicle No.TN 59/E-4939

ix. Vehicle No.TDA/2785

x. Vehicle No.TN 59/D-0321

xi. Vehicle No.TN 59/D-3229

xii. Vehicle No.TN 59/F-1517

xiii. Vehicle No.TN 58/A-4602

3. By a communication of the first respondent dated 312. 2002, the appellant was directed to pay arrears of tax in respect of the above said vehicles amounting to Rs.4,95,955/- on the basis of the objection raised by the Accountant General that the appellant is not entitled to the concessional rate under the Motor Vehicle taxation law. When the appellant attempted to pay quarterly tax for the vehicles, the first respondent refused to receive the tax on the ground that arrears of tax has to be paid first. In fact, the first respondent has withdrawn the concession granted to the appellant in respect of the payment of tax. It was, in those circumstances, the appellant filed the writ petition to set aside the proceedings of the first respondent dated 312. 2002.

4. The learned Judge placing reliance on the definition, educational institution bus as mentioned in section 2(11) of the Motor Vehicles Act, 1988, held that the educational institution must own the vehicle in order to claim the payment of tax as per Item 8(a) of First Schedule to the Tamil Nadu Motor Vehicles Taxation Act, 1974 which is a concessional rate. The rate of tax prescribed in Item 8(a) of First Schedule to the Act in respect of the vehicle owned by educational institutions (educational institution bus), at the time of registration, is Rs.500/-per quarter, while in respect of other transport vehicles, the rate of tax would be Rs.150/-per seat, per quarter. Finding that the said buses are standing in the name of the petitioner and not in the name of educational institutions, it was held by the learned Judge that the same cannot be treated as educational institution vehicles and therefore, the petitioner is not entitled to claim concessional rate of tax in respect of those vehicles. In view of the same, the writ petition came to be dismissed.

5. It is the contention raised on behalf of the appellant that inasmuch as the appellant Society is the educational agency managing the said four schools and all the vehicles are used only for the purpose of those four schools for carrying teachers and students, they should be construed to be educational institution vehicles since the vehicles are not used for any other purpose. It is the further contention of the learned counsel for the appellant that the educational agency being the owner of the properties of the educational institutions which include the vehicles of the institutions also, no property or vehicle stand