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2021 Supreme(Online)(KER) 38308
HIGH COURT OF KERALA
BECHU KURIAN THOMAS, J
MANOJ K.K., – Appellant
Versus
REGIONAL TRANSPORT OFFICER, – Respondent
WP(C)/28344/2021
G.HARIHARAN, PRAVEEN.H, K.S.SMITHA, V.R.SANJEEV KUMAR
The judgment established that governmental extensions of tax deadlines due to extraordinary circumstances are binding and provide relief against undue penalties.
Headnote:
Taxation - Motor Vehicles - Kerala Motor Vehicles Taxation Rules, 1975 - Section 5 - Court interpreted extension of tax payment period due to COVID-19, determining that petitioner should not face penalties for non-payment until due date.
Fact of the Case:
The petitioner, owning a contract carriage vehicle, was detained in Andhra Pradesh for operating without a valid permit and for alleged non-payment of tax. The petitioner argued that tax was due only by the end of December 2021 due to a government notification extending the payment timeline.
Finding of the Court:
The court found that the petitioner was indeed not required to pay taxes before December 31, 2021, as per the government notification, thus ruling that the allegation of operating without payment of tax was not legally justified. The court also noted the circumstances of the vehicle’s detention due to adverse weather conditions.
Issues: Whether the petitioner was liable for tax payment and penalties while operating under specific circumstances impacted by COVID-19, and whether the government was obliged to process the special permit application despite pending tax payments.
Ratio Decidendi: The court held that the extension of the tax payment deadline as per the state government’s notification was applicable, absolving the petitioner from penalties for non-payment before the specified deadline.
Final Decision: The court directed the respondent to accept the fee for a special permit and for the fitness test without insisting on prior tax payment.
JUDGMENT
Petitioner is the owner of a contract carriage vehicle bearing Reg.No.KL-67-7479. While the said vehicle was plying through Andra Pradesh, it was detained on 09.09.2021 by the Motor Vehicles Department of Andhra Pradesh. It was noticed that the vehicle was plying without a valid permit as well as without payment of tax. A sum of Rs.61,250/- was demanded by the 4th respondent towards tax and an equal sum towards penalty apart from a sum of Rs.10,000/- towards permit violation and another Rs.25,00/- for plying the vehicle without payment of tax.
2. Petitioner contends that, the vehicle having obtained registration and permit from Kerala by virtue of Ext.P7 notification, the liability to pay tax for the period 01.07.2021 till 31.12.2021 is available till 31.12.2021 and hence petitioner cannot be alleged to have not paid the tax for the two quarters mentioned above. Petitioner also contends that if the 1st respondent considers the application for grant of a special permit for the vehicle and also accept the fee for conducting a fitness test, petitioner would be able to avoid the burden of unwanted tax and penalty demanded by the 4th respondent.
3. I have heard Sri.G.Hariharan, learned Counsel appearing for the petitioner as well as Dr.Thushara James, learned Government Pleader.
4. Petitioner has paid the entire tax due for the vehicle up till
30.06.2021. For the period from 01.07.2021 till 31.12.2021, petitioner is given the choice to pay tax on 31.12.2021. A perusal of Ext.P7 reveals that the Government had issued the following as part of the notification dated 13.9.2021.
“WHEREAS, the Government are satisfied that the operation of contract carriages specified in serial number 1 and stage carriages specified in item (ii) of serial number 2 under rule 5 of the Kerala Motor Vehicles Taxation Rules, 1975 have been affected due to the outbreak of COVID-19 in the country and the operators of such vehicles are facing acute financial crisis.
NOW, THEREFORE, in exercise of the powers conferred by the proviso to rule 5 of the Kerala Motor Vehicles Taxation Rules, 1975 , the Government of Kerala, in Public Interest, hereby extend the period of remittance of quarterly tax for the quarters commencing from the 1st day of July 2021 and the 1st day of October, 2021 in respect of contract carriages and stage carriages ordinarily kept in the State up to the 31st day of December, 2021.”
5. In view of the above, petitioner need to pay the tax due upon the vehicle for the period from 01.07.2021 till 31.12.2021 only on 31.12.2021. Therefore, petitioner cannot be stated to be plying the vehicle without paying tax, at least till 31.12.2021. The benefit extended by the Government certainly enures to the petitioner and hence the allegation that the vehicle is plying without paying tax cannot be regarded as legally correct.
6. A special permit was granted to the petitioner for a round tip till Assam and back to Perumbavoor by the 1st respondent. The special permit expired on 04.9.2021. The fitness certificate also expired on 30.9.2021. Thus, as matter now stand the petitioner does not have the fitness certificate or the permit for plying the vehicle.
7. Unfortunately due to the torrential rains, the vehicle was suck at Assam beyond the expected date and they reached Andhra Pradesh border only on 09.09.2021. In the meantime, petitioner had applied for a special permit valid till 15.09.2021 and the same was granted as per Ext.P5 dated 09.09.2021 for the route from selam till Perumbavoor.
8. In the meantime, the vehicle was detained at Andra Pradesh by the 4th respondent, alleging non-payment of tax and absence of permit. Since petitioner could not raise the huge amount imposed by the
4th respondent, the vehicle could not be released.
9. In order to enable the petitioner to bring back the vehicle to Kerala, petitioner needs a special permit and must also carry out a fitness test. Since, the tax for the period 01.07.2021 till 31.12.2021 need be paid only by
