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2025 Supreme(Online)(Ker) 49923
IN THE HIGH COURT OF KERALA AT ERNAKULAM
GOPINATH P., J
BIJOY.P.J – Appellant
Versus
THE REGIONAL TRANSPORT OFFICER – Respondent
WP(C) NO. 41418 OF 2025
For the Appellants/Petitioners: SRI.O.D.SIVADAS
For the Respondents: SRI.PRATHEESH.P, SRI. THOMAS MATHEW NELLIMMOOTTIL, SMT.RESMI THOMAS, GP
The requirement for a 'No Objection Certificate' for tax remittance is waived for employees under the EPF scheme, with a new system to be established by December 2025.
Headnote:This judgment addresses the challenge made by the petitioner regarding the mandate of presenting a 'No Objection Certificate' from the Kerala Motor Transport Workers’ Welfare Fund Board for tax remittance. The Court reaffirmed that adherence to the Employees Provident Funds provisions eliminates the need for such a certificate. Key findings emphasized the necessity of verification of employee coverage under the EPF scheme, and a directive was laid out for a process established by December 2025 to enable tax collection without the certificate. The outcome stipulates that tax can be remitted based on proof of EPF contributions until the new system is operational.
| Table of Content |
|---|
| 1. challenge on no objection certificate requirement. (Para 1 , 2) |
| 2. verification of epf coverage needed. (Para 3 , 4 , 5) |
| 3. directive for tax collection process and compliance. (Para 6) |
JUDGMENT The petitioner is before this Court challenging the requirement of producing ‘No Objection Certificate’ from the Kerala Motor Transport Workers’ Welfare Fund Board for the purposes of remitting tax in respect of his stage carriages.
2. It is settled law that where employees are covered by the EPF scheme, the law does not require any contribution towards the Kerala Motor Transport Workers’ Welfare Fund. According to the petitioner, the insistence of ‘No Objection Certificate’ is causing grave prejudice to the petitioner and the authorities may be directed to collect Motor Vehicle Tax without insisting for ‘No Objection Certificate’ from the Kerala Motor Transport Workers’ Welfare Fund Board.
3. Heard Adv. Pratheesh P for the 2nd respondent and Adv.Thomas Mathew Nellimootil for the 3rd respondent.
4. The learned counsel appearing for the Executive Officer, Kerala Motor Transport Workers’ Welfare Fund Board would submit that there has to be a verification as to whether all the employees of the petitioner are covered under the EPF scheme. It is pointed out that such verification has been found to be necessary and this Court while disposing of W.P(C)No.40261 of 2017 recorded the submission that a software is being developed for the purposes of ensuring seamless issuance of No Objection Certificates. It is submitted that this writ petition can also be disposed of on the basis of the directions issued by this Court in W.P(C)No.40261 of 2017.
5. The learned counsel appearing for the petitioner has no objection in the writ petition being disposed of following the directions issued by this Court in W.P(C)No.40261 of 2017.
6. In W.P(C)No.40261 of 2017, this Court directed as follows:-
“4. When the matter is taken up for consideration today, the learned Government Pleader handed over a copy of the communication bearing No.B2/12/2022-TC dated 15.07.2025 issued by the Transport Commissionerate for perusal of this Court. It is a communication from the Transport Commissioner to the Secretary to Government, Transport Department, intimating that as per Kerala Motor Vehicles Taxation Act, 1976 no tax should be collected unless the receipt of remittance of contribution towards welfare fund is produced and that exemption has been granted to subscribers of employees provident fund for remitting contribution to welfare fund and for getting the benefit of exemption certain provisions are to be made in the vahan portal, but the same could not be rectified as the development of software by the Kerala Motor Workers Welfare Fund Board is still not completed. The minutes of the meeting held on 10.07.2024 is also handed over by the learned Government Pleader for perusal of this Court, which reads as follows:
“.......... Representative of National Informatics Centre was absent. Sri Rajeev R, Senior Deputy Transport Commissioner (Tax) informed the meeting that Vahan portal is all set for incorporating the module. National Informatics Centre Delhi maintains Vahan Portal. We are liaising with NIC State Centre Kerala, Thiruvananthapuram.
The Representative of Employees Provident Fund Organisation informed that their data base and software module are accessible. They also informed the none of employees of the petitioner RDS Company (KR KCH 001571900) seen remitted contribution to Employees Provident Fund Organisation, Ernakulam.Chair informed them that such matter may be brought to attention of the Hon High Court.
The representative of Keltron informed that the facility exempting Employees Provident Fund Organisation subscribers online is under development. The data migration process is progressing, and trial testing is ongoing. They mentioned that the process will be completed by December. They demanded an additional six months for completing the process.
The Ke
