O R D E R

This writ petition has been filed for a mandamus to direct the fifth respondent to release the petitioners Bus bearing Registration No.NL-01-

B-1080.

2. The said Bus of the petitioner was impounded under Section 207 of Motor Vehicles Act,1988 by the fourth respondent on 13.04.2022 for failure to pay motor vehicle tax in the state of Tamil Nadu under Tamil Nadu Motor Vehicle Tax Act 1974.

3. Earlier interim order came to be passed by this court on

11.05.2022 wherein it was observed as under:-

“Although the petitioner seeks release of the vehicle without insisting on payment of motor vehicles tax, without prejudice to the contentions, the petitioner is willing to pay the MotorVehicle Tax if the amount is indicated by the respondent”

4. During the pendency of the present writ petition, the petitioner has been issued with a demand notice dated 08.06.2022 bearing reference R.No.10127/A3/2022. In the said demand notice, the Licensing Officer/Regional Transport Officer, Salem (East), Salem has proposed to levy tax and penalty under the provisions of the Tamil Nadu Motor Vehicles Taxation Act, 1974 read with Rule 4 of Tamil Nadu Motor Vehicles Taxation Rules 1974 for violation of permit conditions. Relevant portion of the demand notice reads as follows:

“Hence, I the Motor Licensing Officer/Regional Transport Officer, Salem (East), in exercise of the powers conferred or the under Section 3(1) of Tamil Nadu Motor Vehicles Taxation Act 1974 read with Rule 4 of Tamil Nadu Motor Vehicles Taxation Rules 1974 since the tax due to Tamil Nadu State has not been paid and the vehicle is detained for non payment of tax under Section 18-A of Tamil Nadu Motor Vehicles Taxation Act, 1974 and under Section 192A (1) the Motor Vehicles (Amendment) Act 2019 for violation of permit conditions directed the owner of the vehicle to pay a sum of Rs.36,000/- with due penalty of Rs.36,000/- Total of Rs.72,000/-, 1% of tax for labour welfare as motor vehicle tax due for Tamil Nadu State as specified under Ninth Schedule of Tamil Nadu Motor Vehicles Taxation Act, 1974 for a period of 7 days covering 13.04.2022 and total compounding fee of Rs.20,500/- [Rs.10,000/- for violation of permit conditions as per Section 192-A (1) the Motor Vehicles (Amendment) Act 2019 + Rs.10,000/- for without pollution certificate as per Section 190(2) the Motor Vehicles (Amendment) Act 2019 and +Rs.500/- for not produced records at the time of inspection as per Section 177 of the Motor Vehicles (Amendment) Act 2019] so as to consider the release of the above contract carriage AllIndia Tourist Omni Bus NL01B1080 detained in this office within a period of 7 days from the date of receipt of a copy of this letter.”

5. It is the case of the petitioner that the petitioner has obtained a “Permit” and “Authorization” under All India Tourist Vehicles (Authorisation or Permit) Rules 2021 and therefore impounding of the petitioner bus a Tourist vehicle albeit “ contract carriage” was without authority of law. It is therefore the case of the petitioner that the petitioner is not liable to pay tax under Tamil Nadu Motor Vehicles Taxation Act 1974 once the petitioner has paid for the “All India Permit”

and “ authorization” under the aforesaid Rules.

6. The case of the petitioner is that if amounts are collected under the provisions of the All India Tourist Vehicles (Authorisation or Permit) Rules, 2021 framed under provision of the Motor Vehicle Act, 1988, demand for tax under Tamil Nadu Motor Vehicles Taxation Act 1974 is without any of law. Under Section 3(1) of the Tamil Nadu Motor Vehicles Taxation Act, 1974. The said Section reads as under:

“3 (1) Subject to the provisions of sub-section (2), tax shall be levied on every motor vehicle used or kept for use in the state of Tami Nadu at the rate specified for such vehicle in the First schedule or in the Second schedule or in the Third schedule or in the Fifth schedule as the case may be”.

7. It is further submitted that the Government of Tamil Na