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HIGH COURT OF KERALA
S.V. BHATTI, J
MOHAMMED SABAH – Appellant
Versus
THE ASSISTANT REGISTERING AUTHORITY – Respondent
WRIT PETITION (CIVIL) 18588/2018
Taxation - Motor Vehicles - Motor Vehicles Taxation Act, 1976 - Sections 3(6) - Validity and Application
Fact of the Case:
Writ petitions were filed challenging the orders requiring vehicles to be registered and taxed in Kerala despite valid registrations in other states, leading to disputes regarding taxation and registration under local and central vehicle laws.
Finding of the Court:
The court held that Section 3(6) of the Motor Vehicles Taxation Act, 1976 is valid and does not conflict with the central Act, emphasizing on the eligibility to tax vehicles based on duration of stay in Kerala.
Issues: Whether Section 3(6) of the Motor Vehicles Taxation Act, 1976 is valid and applicable, and whether the state can levy tax on vehicles registered in other states under specific conditions.
Ratio Decidendi: The validity of state taxation provisions is upheld, affirming that local legislation does not infringe upon the Motor Vehicles Act, 1988, provided vehicles are taxed based on their stay beyond stipulated periods.
Final Decision: The court set aside the impugned orders and directed authorities to consider objections regarding tax levy appropriately.
JUDGMENT
These writ petitions were heard along with W.P.(C)
No.33231 of 2018 and connected cases. Vide judgment dated 16th July, 2019, W.P.(C) No.33231 of 2018 and connected cases were disposed of. The operative portion of the judgment reads thus:
“37. As a result of my above discussion I summarise my judgment on the issues noted above as follows:
(a) Section 3 (6) of Motor Vehicles Taxation Act, 1976 is within the competence of State legislature and (6) is not in any manner repugnant to Chapter IV of Motor Vehicles' Act, 1988 or ultra vires Act 1976. (6) therefore is valid and legal.
(b) The registration of a non-transport vehicle and payment of registration fee under Act 1988 or payment of motor vehicle tax under a State legislature continues to be valid so long as the vehicle is kept and used in the State in which it is registered. These vehicles if enter State of Kerala and stay beyond the period stipulated by the State enactment, the vehicle is required to pay vehicle tax as per Section 3 (6) read with Annexure III of Schedule of Act 1976.
(c) The impugned orders calling upon the petitioners to register the subject vehicles in State of Kerala and pay life tax are set aside as illegal, arbitrary and violative of principles of natural justice, the matters are restored to the file of respective Regional Transport Officer/ respondents for consideration and disposal by keeping in view the principles stated supra.
(d) The writ petitions filed challenging show cause notices are given four weeks' time from the date of receipt of copy of this judgment to file objections against proposed tax levy and are entitled to show that, firstly, the vehicle is not kept for use in State of Kerala beyond thirty days and, alternatively, vehicle is not at all used or kept for use in State of Kerala. The objection raised against proposed action is examined in detail and orders as are warranted by the circumstances of the case are passed. Respondents keeping in view the scope, character and purpose of incidence of vehicle tax, consider the objections and pass detailed orders, in all the matters now restored to file as well as where time is granted for filing objections to show cause notice.”
These writ petitions are also disposed of on the same lines.
Sd/-
S.V.BHATTI JUDGE
APPENDIX OF WP(C) 18588/2018 EXHIBIT P1 TRUE COPY OF THE LEASE AGREEMENT DATED
20.12.2010.
EXHIBIT P2 TRUE COPY OF THE CERTIFICATE OF REGISTRATION ISSUED BY THE 5TH RESPONDENT.
EXHIBIT P3 TRUE COPY OF THE KERALA FINANCE ACT, 2015 (RELEVANT EXTRACT).
EXHIBIT P4 TRUE COPY OF THE CHECK REPORT DATED
17.11.2017.
EXHIBIT P5 TRUE COPY OF THE REQUEST DATED 21.11.2017. EXHIBIT P6 TRUE COPY OF THE REQUEST DATED 12.01.2018. EXHIBIT P7 TRUE COPY OF THE REQUEST DATED 23.04.2018.
EXHIBIT P8 TRUE COPY OF THE NOTICE DATED 23.05.2018 ISSUED BY THE 3RD RESPONDENT.
RESPONDENT'S/S EXHIBITS:
EXHIBIT R3(A) TRUE COPY OF NOTICE WITH REMARKS OF POSTAL AUTHORITY.
EXHIBIT R3(B) TRUE COPY OF NOTICE WITH REMARKS OF POSTAL AUTHORITY EXHIBIT R3(C) TRUE COPY OF REPORT OF THE FIELD OFFICER EXHIBIT R3(D) TRUE COPY OF NATIONAL REGISTER APPENDIX OF WP(C) 21399/2018 EXT.P1 TRUE COPY OF THE RETAIL INVOICE NO.8 DATED
15/3/11 ISSUED FROM MARIKKAR ENGINEERS PRIVATE LTD.
EXT.P2 TRUE COPY OF CERTIFICATE OF REGISTRATION OF THE CAR BEARING REGISTRATION NO.PY-01-BH
0066 DATED 4/4/2011.
EXT.P3 TRUE COPY OF THE ELECTION ID OF FARHAD T.K.
BEARING NO.LRR0538421 WHICH SHOWED HIS ADDRESS IN PONDICHERRY EXT.P4 TRUE COPY OF THE LETTER ISSUED BY THE 4TH RESPONDENT TOT HE 1ST RESPONDENT DATED 23-
1-2015 EXT.P5 TRUE COPY OF FORM NO.29 AND FORM NO.30 SIGNED AND ISSUED BY THE PETITIONER DATED
23/1/2015 EXT.P6 TRUE COPY OF INVOICE NO.POR 14150028 DATED
1/2/2015 EXT.P7 TRUE COPY OF REGISTRATION PARTICULARS OF THE CAR BEARING REGISTRATION NO.KL 32 H6666 DATED 13/5/2015.
EXT.P8 TRUE COPY OF THE PRINT OUT OBTAINED FROM THE VAHAN PORTAL DATED 15/11/2017.
EXT.P9 TRUE COPY OF THE COMPLAINT GIVEN BY THE PETITIONER TO THE SUB INSPECTOR OF POLICE, AROOR POLICE STATION DAT
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