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IN THE HIGH COURT OF MADHYA PRADESH
Mohammad Rafiq, CJ, and Vijay Kumar Shukla, J.
Ankit Patel v. The State Of Madhya Pradesh & Others
Writ Appeal No. 702 of 2021(Jabalpur): against the order dated 22.3.2021 passed in Writ Petition No.2565/2020;
Decided on 5.8.2021
(1) Motoryan Karadhan Adhiniyam, 1991 (M.P.) -- S. 21 (1) -- notification F 22--124/2019/VIIIdated 2.8.2019 issued by Transport Department -- discount/exemption up to 90% onmotor vehicle tax and penalty -- clauses 1 and 2 of notification are independent of each other -- use of words "terms" and "conditions" clearly denotes plural of conditions, not singular -- all four conditions enumerated one after another -- not disjuncted by word "or" -- not only sub-clause (1) of clause 1, but sub-clause (2) also has to be satisfied -- vehicle of petitioner does not fulfill very first condition of having completed 20 years from date of manufacture -- merely because it is still registered with Transport Department, case of petitioner will not come within purview of first clause -- there is, therefore, no need to apply test contained in subsequent sub-clauses (2), (3) and (4) - petitioner not entitled to benefit of discount of 90% as per clause 1 -- vehicle of petitioner only 9 years old -- his case will fall in serial 2 of clause 2(1) -- entitled to discount of only 40%. [Paras 7 & 8]
(2) Interpretation of Statute -- fiscal statute -- exemption notification -- important principle of interpretation -- inconstruing exemption notification, question of equity does not arise -- exemption provision has to be strictly construed -- any exemption notification or any clause of any notification of exemption in regard to taxation has to be strictly construed. (2004) 7 SCC 377, (2011) 1 SCC 236, AIR 1970 SC 755, (2005) 7 SCC 190, (2012) 3 SCC 522 and (2017) 2 SCC 1 followed. [Para 9]
(3) Interpretation of Statute -- fiscal statute -- exemption notification -- interpretation required to be made in light of words used therein -- not by any other method -- nothing can be added or subtracted from what is stated -- required to be strictly construed -- when language is simple, clear and unambiguous then words have tobe given their natural meaning. (2012) 7 SCC 153 followed. [Para 13]
(4) Interpretation of Statute -- fiscal statute -- exemption notification -- ambiguity in notification -- exemptions should generally be interpreted strictly -- in case of ambiguity, it has to be interpreted in favour of revenue -- but beneficiary provisions may be interpreted liberally, keeping in view the purpose of encouragement of industrial activities, encouraging capital investment, promoting development of industry and trade etc. (2011) 2 SCC 74 followed. (1990) 4 SCC 256, (2018) 9 SCC 1, (1997) 6 SCC 564 and 2021 SCC Online SCC 151 discussed. [Para 18]
¼1½ eksVj;ku djk/kku vf/kfu;e] 1991 ¼eŒÁŒ½ & /kkjk 21¼1½ & ifjogu foHkkx }kjk tkjh vf/klwpuk ,Q 22&124@2019@vkB fnukad 2-8-2019 & eksVj;ku dj vkSj 'kkfLr esa 90 rd dh NwV & vf/klwpuk ds [kaM 1 vkSj 2 ,d nwljs ls Lora= gSa & 'kCnksa ^^fuca/kuks** ,oa ^^'krksZ** ds mi;ksx ls 'krksZ dk ,dopu ugha cgqopu Li"Vr% |ksfrr & lHkh pkj 'krsZ ,d ds ckn ,d ifjxf.kr & 'kCn ^^vFkok** ls i`Fkd~Ñr ugha & [kaM 1 ds mi[kaM ¼1½ dh gh ugha] vfirq mi[kaM ¼2½ dh Hkh iwfrZ gksuk gksrh gS & ;kph dk ;ku fofuekZ.k dh rkjh[k ls 20 o"kZ iwjs dj pqdus dh ÁFke 'krZ gh iwjh ugha djrk ;kph dk ekeyk ÁFke [kaM dh ifjf/k esa ek= blfy, ugha vk tk,xk fd ;ku vHkh Hkh ifjogu foHkkx esa jftLVªhÑr gS & blfy,] ijorhZ mi[kaM ¼2½] ¼3½ vkSj ¼4½ esa varfoZ"V dlkSVh ykxw djus dh dksbZ vko';drk ugha & ;kph [kaM 1 ds vuqlkj 90 Áfr'kr NwV ds Qk;ns dk gdnkj ugha & ;kph dk ;ku ek= 9 o"kZ iqjkuk & mldk ekeyk [kaM 2¼1½ ds la[;kad 2 esa vk,xk & ek= 40 Áfr'kr NwV dk gdnkjA ¼iSjk 7 ,oa 8½
¼2½ fof/k dk fuoZpu & jktfoÙkh; dkuwu & NwV vf/klwpuk & fuoZpu dk egRoiw.kZ fl)kar & NwV vf/klwpuk dk vFkkZUo;u djus esa lkE;k dk Á'u mn~Hkwr ugha gksrk & NwV mica/k dk vFkkZUo;u vfrfu;efu"Brk ls fd;k tkuk gksrk gS & djk/kku ls lacaf/kr fdlh Hkh NwV vf/klwpuk dk ;k vf/klwpuk ds fdlh NwV ds [kaM dk vFkkZUo;u vfrfu;fe"Brk ls fd;k tkuk gksrk gSA ¼2004½ 7 ,l lh lh 377] ¼2011½ 1 ,l lh lh 236] , vkb vkj 1970 ,l lh 755] ¼2005½ 7 ,l lh lh 190] ¼2012½ 3 ,l lh lh 522 rFkk ¼2017½ 2 ,l lh lh 1 vuqlfjrA ¼iSjk 9½
¼3½ fof/k dk fuoZpu & jktfoÙkh; dkuwu & NwV vf/klwpuk & mlesa Á;qDr 'kCnksa ds vkyksd esa fuoZpu fd;k tkuk visf{kr & fdlh vU;
ORDER
Rafiq, C.J. -- 1. This appeal seeks to challenge the judgment passed by the learned Single Judge in W.P. No.2565/2020 dated 22.3.2021 by which the writ petition filed by the appellant has been dismissed.
2. The appellant in the writ petition challenged the order dated 11.10.2019 (Annexure P-4) wherein the Additional Regional Transport Officer, Chhindwara while granting discount of 40% i.e. Rs. 3,78,960/- out of the total demand of Rs. 9,47,400/- on the payable amount of motor vehicle tax and penalty in respect of the vehicle No. MP-28-P-0269 registered in the name of the petitioner had raised a demand of Rs. 5,68,440/-, calling upon the petitioner to pay the same up to the month of October, 2019.
3. Mr. Ashish Rawat, learned counsel for the petitioner has argued that as per the notification dated 2.8.2019 issued by the Transport Department, Government of Madhya Pradesh under section 21(1) of the Madhya Pradesh Motor Vehicles Taxation Act, 1991, the respondents were required to give discount/exemption to the extent of 90% on the payable amount of motor vehicle tax and penalty if any one of the four conditions enumerated therein was attracted. Learned counsel argued that all the four conditions are namely; (1) Vehicles which have completed 20 years from the date of manufacture and are still registered in the Transport Department; (2) Vehicles on which the motor vehicle tax and penalty or both are pending and the vehicle owner voluntarily wants to cancel the registration of the vehicle; (3) Such vehicles for which Permit, Fitness Certificate and Insurance have not been taken and no case has been registered on the vehicle for any crime within last five years from the date of issue of this notification; (4) The time limit for payment of discounted motor vehicle tax and penalty shall be 31st March, 2020 from the date of issue of notification. Merely because the vehicle of the appellant was 9 years old, the discount only to the extent of 40% as per Clause 2 of the aforesaid exemption notification cannot be justified. It is submitted that Clause 1 of the above notification is independent of Clause 2 and each of the four clauses enumerated therein shall have to be read dis-jointly and not together. According to the petitioner, as per Clause 1 of the exemption notification, entitlement of the petitioner to get discount is to the extent of 90% and, therefore, the petitioner has been wrongfully denied the discount to the extent of 50% on the amount of motor vehicle tax and penalty.
4. Learned counsel for the respondents opposed the writ petition and submitted that learned Single Judge was perfectly justified in dismissing the writ petition. It is submitted that entire exemption notification has to be read in entirety inasmuch as all the clauses of the exemption notification have to be read conjointly and one part cannot be read to the exclusion of another.
5. We have given our anxious consideration to the rival contentions of the learned counsel for the parties.
6. The exemption notification which is relevant for deciding the present writ appeal, reads as under :--
“F 22-124/2019/VIII, In exercise of the powers conferred by sub-section (1) of section 21 of the Madhya Pradesh Motoryan Karadhan Adhiniyam, 1991 (No. 25 of 1991), the State Government, hereby, exempts the motor vehicles of all categories and age limit registered before the publication of this notification from the payment of dues of motor vehicle tax and penalty as under:-
1. Exemption of taxes on Astray Vehicles.- The vehicle of this category shall be given 90 percent discount on the payable amount of motor vehicle tax and penalty thereon, subject to the following terms and conditions :--
(1) Vehicles which have completed 20 years from the date of manufacture and are still registered in the Transport Department.
(2) Vehicles on which motor vehicle tax or penalty or b
SupremeToday
The main legal point established in the judgment is the strict construction of exemption notifications, the importance of consistency in decision-making, and the absence of ambiguity in the words emp....
Burden of proving applicability would be on assessee to show that his case comes within parameters of exemption clause or exemption notification.
Exemptions under G.O.Ms. No. 1091 are general under state law but do not qualify as general exemptions under the Central Sales Tax Act due to specific conditions in the exemption notification.
Excise duty exemptions granted for industrial development are capital receipts, not subject to taxation under normal provisions or included in MAT calculations.
(1) Eligibility clause in relation to exemption notification must be given effect to as per language and not to expand the scope deviating from language – There is a vast difference and distinction.(....
The main legal point established in the judgment is that the exemption notification must be strictly construed and defined according to legislative intendment.
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