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IN THE HIGH COURT OF ORISSA
S. Muralidhar, M.S. Raman, JJ.
Azeez Ahemad - Appellant
Versus
Transport Commissioner Cum Chairman, State Transport Authority - Respondent
Writ Appeal No. 239 of 2018
Decided On : 15-03-2023
TAXATION - Orissa Motor Vehicles Taxation Act, 1975 - Sec. 4A - The court interpreted Sec. 4A of the OMVT Act, determining that the amendment effective from 21/11/2017 regarding one-time tax for Maxi Cabs was not retrospective. The court emphasized that the amendment was not merely clarificatory but a conscious legislative decision, thus vehicles registered before this date would not be subject to the one-time tax, aligning with the legislative intent of distinguishing between vehicles registered before and after the appointed date.
Fact of the Case:
The appellants, owners of Maxi Cabs registered before 21/11/2017, challenged the imposition of a one-time tax under Sec. 4A of the OMVT Act, arguing that the amendment should apply prospectively only.
Finding of the Court:
The court found that the amendment to Sec. 4A was not retrospective and clarified that vehicles registered prior to 21/11/2017 would not be required to pay the one-time tax, as the amendment was a conscious legislative decision.
Issues: Whether the amendment to Sec. 4A of the OMVT Act, effective from 21/11/2017, applies retrospectively to vehicles registered before this date.
Ratio Decidendi: The court held that the amendment was not merely clarificatory and that the expression 'appointed date' should be understood in the context of the amendment, distinguishing between vehicles registered before and after the amendment.
Final Decision: The court set aside the learned Single Judge's judgment, ruling that vehicles registered prior to 21/11/2017 would fall under the optional clause for the one-time tax, allowing the writ appeals.
JUDGMENT
DR.S.MURALIDHAR, CJ.
The present writ appeals are directed against a common judgment dtd. 20/4/2018 passed by the learned Single Judge dismissing the writ petitions filed by these Appellants.
2. By the impugned judgment, the learned Single Judge rejected the plea of the Appellants that Sec. 4A of the Orissa Motor Vehicles Taxation Act, 1975 (OMVT Act) as amended with effect from 21/11/2017, would have only prospective operation and the onetime tax payable thereunder would not apply to vehicles that were purchased prior to the date of the amendment. In other words, the learned Single Judge has held the amendment to be clarificatory and therefore, the Appellants would have to pay the onetime tax on the Maxi Cabs owned by them even though these such Maxi Cabs may have been purchased prior to 21/11/2017.
3. While directing notice to issue in W.A. No.239 of 2018 on 17/5/2018, this Court directed that the impugned judgment shall remain stayed. That interim order has continued since.
4. The background facts are that each of the Appellants as the owner of Maxi Cab passenger vehicle which was registered with the Regional Transport Officer (RTO), Bhubaneswar on various dates between 3/7/2012 and 21/11/2017. The tax under the OMVT Act on such vehicles was payable monthly. According to the Appellants, the tax has been regularly paid on that basis.
5. With effect from 1/6/1989, Sec. 4A was inserted in the OMVT Act. It contains a provision for levy and payment of a one-time tax and read as under:
6. Under Sec. 4 of the OMVT Act, the taxes were to be paid on annual or monthly basis. Sec. 4A introduced the concept of a one-time tax. This was applicable to vehicles of the description specified in items1 and 2 and every motor vehicle (being motor car) covered by item 6 of Schedule-I which was used personally or kept for personal use. The one-time tax was to be ten times the annual rate of tax in respect of such vehicle. Where the vehicle was already on the road prior to the appointed date, the one-time tax was to be calculated after deducting from the usual one-time tax one fifteenth thereof for each completed period of twelve months commencing on the date of initial purchase or acquisition of the vehicle for which the tax has been paid, but such tax would not be less than one tenth of such usual one-time tax.
7. Sec. 4A was amended in 1990 by including a motorcar as part of the vehicles to which the one-time tax would be applicable. The list of vehicles was expanded by a furt
The amendment to Sec. 4A of the OMVT Act regarding one-time tax for Maxi Cabs is not retrospective and applies only to vehicles registered on or after 21/11/2017.
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