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IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.M. Subramaniam, J.
St.Joseph Matriculation Higher Secondary School, Represented by its Principal – Petitioner
Versus
The State of Tamil Nadu, Represented by Secretary to Government, Home (Transport) Department – Respondent
WP No. 15055 of 2004 & WPMP No. 17869 of 2004
Decided On : 13-08-2021
Constitution of India,1950 - Article 226 - Tamil Nadu Motor Vehicles Taxation Act, 1974 - Section 3(2) - Declaring the Tamil Nadu Motor Vehicles Taxation (Amendment) Act, Act 13 of 2003 as null and void - Violation of the equality clause of the Constitution - Batch of appeals raises a challenge to the Amendment (Act 13 of 2003) of Tamil Nadu Motor Vehicles Taxation Act, 1974 by which Motor Vehicles Tax on buses that are used by educational institutions has been increased from a flat figure - learned senior counsel appearing on behalf of the appellant, has pointed out that educational institutions appearing before us include a number of nursery schools, special schools for mentally and physically challenged children, dumb and deaf children, blind children - These schools have vehicles- buses and vans of their own to bring students to such schools from far off places - Section 3(2) of Tamil Nadu Motor Vehicles Taxation Act, 1974, while empowering the Government, by notification, to increase rate of tax specified in Schedules to the Act provides that such increase by notification shall not in the aggregate exceed 50% of the rate so specified in any of said Schedules - She has argued that Amendment Act flies in face of the principle of said proviso, which is that arbitrary increases in tax should not be resorted –
Finding of the court:
, Pursuant to the aforesaid order, matter was examined by respondent-State Government - Learned counsel appearing for the respondent-State, submits that the Government has agreed not to recover any arrears of Motor Vehicles Tax but amount which is already recovered, is not to be refunded - Learned counsel appearing for the appellants have argued that increase in the rate of Motor Vehicles Tax was substantially higher, as noted, and was contrary to proviso to Section 3(2) of the Tamil Nadu Motor Vehicles Taxation Act, 1974 and, therefore, there is no reason for not refunding the tax which is already collected from these appellants - Court may record here at this stage that all these appeals are preferred by the educational institutions or educational institutions represented through their associations - Scope of these appeals is confined to the payment of Motor Vehicles Taxes by such schools/colleges on the buses or other vehicles used by them- entirety of the issue and also going by the spirit and tenor of Order dated 12th October, 2017, we are of the opinion that though a decision is taken by State Government not to overcharge insofar as these educational institutions are concerned even the tax which was collected on that account should also be refunded –
Result : Writ petition disposed of
JUDGMENT :
(Prayer: Writ Petition is filed under Article 226 of the Constitution of India, praying for the issuance of a Writ of Declaration, declaring the Tamil Nadu Motor Vehicles Taxation (Amendment) Act, Act 13 of 2003 as null and void in so far as it substitutes the rate of tax in Clause-8 of the Schedule to the Principal Act by increasing the Motor Vehicles Tax in respect of the vehicles owned by the petitioner school from Rs.500/- per quarter to Rs.150/- for every person (other than the driver which the vehicle is permitted to carry).)
1. The present writ petition is filed for a Writ of Declaration, declaring the Tamil Nadu Motor Vehicles Taxation (Amendment) Act, Act 13 of 2003 as null and void in so far as it substitutes the rate of tax in Clause-8 of the Schedule to the Principal Act by increasing the Motor Vehicles Tax in respect of the vehicles owned by the petitioner school from Rs.500/- per quarter to Rs.150/- for every person (other than the driver which the vehicle is permitted to carry).
2. The respective learned counsel appearing on behalf of the parties in this writ petition made a submission that the Hon’ble Division Bench of the Madras High Court rejected the claim of the writ petitioner and the matter was taken by way of an appeal before the Hon’ble Supreme Court of India.
3. The Apex Court passed an order dated 18.07.2018 in Civil Appeal No.9253 of 2010 and the following orders are passed:-
The present batch of appeals raises a challenge to the Amendment (Act 13 of 2003) of The Tamil Nadu Motor Vehicles Taxation Act, 1974 by which Motor Vehicles Tax on buses that are used by educational institutions has been increased from a flat figure of Rs. 500/- per quarter to Rs. 150/- per seat per quarter. The effect of the raise, therefore, in percentage terms is between 450% and 1800%.
Ms. V.Mohana, learned senior counsel appearing on behalf of the appellant, has pointed out that the educational institutions appearing before us include a number of nursery schools, special schools for mentally and physically challenged children, dumb and deaf children, blind children etc. These schools have vehicles- buses and vans of their own to bring students to such schools from far off places. She has pointed out that in most of these institutions free education is provided, and that the impugned judgment dated 15.11.2006 of the High Court of Madras stating that this was not the case is not correct.
It has also been pointed out that Section 3(2) of the Tamil Nadu Motor Vehicles Taxation Act, 1974, while empowering the Government, by notification, to increase the rate of tax specified in the Schedules to the Act provides that such increase by notification shall not in the aggregate exceed 50% of the rate so specified in any of the said Schedules. She has argued that the Amendment Act flies in the face of the principle of the said proviso, which is that arbitrary increases in tax should not be resorted to. According to her, it is obvious that on facts unequals are being treated as equals and that insofar as the appellant institutions are concerned, there would be a violation of the equality clause of the Constitution.
We feel that it would be in the fitness of things if the State of Tamil Nadu were to examine these cases separately and differently from other cases involving payment of motor vehicles tax. We have been informed that the present batch of appeals only relates to three years, namely, 2003 to 2006, and that when the tax was decreased in 2006 to Rs.100 per person per bus, the appellants have thereafter paid motor vehicles tax at the said rate. Ms. Mohana has also made a fervent plea before us that it would be well nigh impossible for the institutions before us now to collect amounts by way of tax that may be charge
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