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Pre. Act No. 19 of 1976

PREAMBLE

An Act to consolidate and amend the laws relating to the levy of tax on motor vehicles and on passengers and goods carried by such vehicles in the State of Kerala

Whereas it is expedient to consolidate and amend the laws relating to the levy of tax on motor vehicles and on passengers and goods carried by such vehicles in the State of Kerala.

Be it enacted in the twenty seventh year of the Republic of India as follows:-

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* Pub. in K.G. Ex. No. 196 dt 25-3-1976 Date of Commencement 1-10-1975.

S.1 Short title, extent and commencement

(1) This Act may be called The Kerala Motor Vehicles Taxation Act, 1976.

(2) It extend to the whole of the State of Kerala

(3) It shall be deemed to have come into force on the 1st day of October, 1975

S.2 Definition

In this Act, unless the context otherwise requires -

¹[(a) “cubic capacity” in respect of any motor vehicle mentioned in items 1 and 2 of the Schedule means cubic capacity recorded in the certificate of registration, and in case where cubic capacity is not recorded in the certificate of registration, the cubic capacity as determined by the registering authority taking into consideration the cubic capacity of similar type of vehicle;]

²[aa] “fleet owner” means a person, an institution, the Government, who or which is the registered owner of more than one hundred and fifty transport vehicles used or kept for use in the State.

(b) “laden weight” In respect of any motor vehicles, means the registered laden weight recorded in the certificate of registration and, in cases where the vehicle is not registered or the laden weight is not recorded in the certificate of registration, the l

S.3 Levy of tax

(1) Subject to the provisions of this Act, on and from the date of commencement of this Act, a tax shall be levied on every motor vehicle used or kept for use in the State, at the rate specified for such vehicle in the Schedule:

Provided that no such tax shall be levied on a motor vehicle kept by a dealer in, or a manufacturer of, such vehicle, for the purpose of trade and used under the authorization of a trade certificate granted by the registering authority;

¹[provided further that in respect of a new motor vehicle of any of the classes specified in item Nos. 1(b), 2 and 11 of the Schedule to this Act, there shall be levied from the date of purchase of the vehicle ‘one time tax’ at the rates specified in the Annexure at the time of the first registration of the vehicle, and thereafter tax shall be levied in the schedule as per the fourth proviso to sub-section (1) of Section 4,

S.4 Payment of tax and issue of license

(1) The Tax levied under Sub Section (1) of Section 3 shall be paid in advance with such period and in such manner as may be prescribed, by the registered owner or person having possession or control of the Motor Vehicle, for a quarter or year, at his choice, upon a quarterly or annual license to be taken out by him.

Provided that, in the case of fleet owner, the Government may direct that the tax shall be paid in monthly instalments before such date, in such manner and subject to such conditions, as maybe specified in the direction:

¹[Provided further that where the tax payable in respect of a motor vehicle other than a motorcycle (including a motor scooter and cycle with attachment for propelling the same by mechanical power) or a three wheeler as specified in items 1 and 2 of the schedule or a motor car as specified in item 11 of the Schedule, for a year does not exceed Rupees one thousand five hundred, th

S.5 Exemption from tax

(1) In the case of a motor vehicle which is not intended to be used or kept for use during the first month or the first and second months of a quarter, or the whole of a quarter or year as the case may be, the registered owner or the person having possession or control of such vehicle shall give previous intimation in writing to the Regional Transport Officer from whom the endorsement of tax has been obtained, that such vehicle would not be used for such period and thereupon, the registered owner or such other person shall not be deemed to have used or kept for use the vehicle for such period, and no tax shall be payable in respect of such vehicle for such period.

(2) Nothing in sub-section (1) shall exempt a person from liability to pay tax in respect of a motor vehicle, if, on verification, it is found that the motor vehicle has been used during such period or any portion thereof.

(3) Notwithstanding anything contained

S.6 Refund of Tax

(1) where the tax for any motor vehicle has been paid for any quarter or year and the vehicle has not been used or kept for use during the whole of that quarter or year or a continuous part thereof not being less than one month, a refund of the tax at such rates as may, from time to time, be notified by Government, shall be payable subject to such conditions as may be specified in such notification.

¹[(2) Notwithstanding anything contained in this Act, a registered owner who has paid tax for a year or more shall be entitled to refund of tax at such rates as may be prescribed on cancellation of the legislation of the vehicle or removal of the vehicle to any place outside the State on account of transfer of ownership or change of address.]

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1. Substituted by Act 10 of 1997.

S.7 Payment of additional tax

When any motor vehicle in respect of which tax has been paid is altered, used or proposed to be used, in such a manner as to cause the vehicle to become a vehicle in respect of which a higher rate of tax is payable, the registered owner or the person having possession of control of such vehicle shall pay an additional tax of sum equal to the difference between the tax already paid and the tax which is payable in respect of such vehicle for the period for which the higher rate of tax is payable in consequence of its being so altered or used or proposed to be used, and the licensing officer shall not grant a fresh tax licence in respect of such vehicle so altered or used or proposed to be used until such amount of tax has been paid.

Provided that nothing in this section shall impair the rights of a charge-holder or transferee in good faith and for consideration.

S.8 Production of certificate of insurance

Every registered owner or person having possession or control of a motor vehicle shall, at the time of making payment of the tax, produce before the Taxation Officer a certificate of insurance in respect of the vehicle, which is valid at the time of making such payment, complying with the requirements of Chapter VIII of the Motor Vehicles Act, 1939 (Central Act 4 of 1939)

S.9 Liability to payment of tax by persons succeeding to the ownership, possession or control of motor vehicles

(1) If the tax leviable in respect of any motor vehicle remains unpaid by any person liable for the payment thereof and such person before payment of tax has transferred the ownership of such vehicle or has ceased to be in possession control of such vehicle, the person to whom the ownership of the vehicle has been transferred or the person who has possession or control of such vehicle shall be liable to pay the said tax.

(2) Nothing contained in Sub-section (1) shall be deemed to affect the liability to pay the said tax of the person who has transferred the ownership or has ceased to be in possession or control of such vehicle.

S.10 Power of officers of Police or Motor Vehicles Department to stop motor vehicles

(1) Any officer of the Motor Vehicles Department not below the rank of Assistant Motor Vehicles Inspector or any police officer in uniform who is not below the rank of a Sub Inspector may require the driver of any motor vehicle in any place to stop such vehicle and cause it to remain stationery so long as may reasonably be necessary for the purpose of satisfying himself that the amount of the tax due in accordance with the provisions of this Act in respect of such vehicle has been paid.

(2) Any person failing to stop a motor vehicle when required to do so under sub-section (1) by any officer referred to in that sub-section or resisting any such officer when required under that sub-section to stop a motor vehicle shall, on conviction, be punishable with the same penalty as provided in Section 16.

S.11 Seizure and detention of motor vehicles pending production of proof of remittance of tax

Any Officer not below the rank of Assistant Motor Vehicles Inspector authorized in this behalf by the Government or any police officer not below the rank of Sub-Inspector may, if he has reason to believe that a taxable motor vehicle is used or kept for use in the State without paying the tax, seize and detain that vehicle and make arrangements for the safe custody of that vehicle pending production of proof of payment of the tax.

S.12 Additional tax payable when tax not paid

(1) When any registered owner or any person who has possession or control of any motor vehicle used or kept for use in the State has not paid the tax within the prescribed period, he shall pay, in addition to the tax, an additional tax of the such amount as may be specified by the Government by Notification in the Gazette, not exceeding the amount of the tax due.

(2) The additional tax under sub-section (1) shall be paid along with the arrears of tax.

¹[(3) Any difference in tax payable consequent on the increase in the rates of tax shall be payable along with the tax payable for the subsequent period without payment of additional tax under sub-section (1)]

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1. Inserted by Act 16 of 2000, w.e.f. 1-4-1997.

S.13 Amounts recoverable as arrear of land revenue

(1) Any amount due under this Act and Rules made thereunder shall be recoverable in the same manner as an arrear of public revenue due on land.

(2) The motor vehicle in respect of which any amount is due or its accessories maybe distrained and sold in pursuance of sub-section (1) whether or not such vehicle or accessories is or are in the possession or control of the person liable to pay the amount.

S.14 Transfers to defeat or delay recovery of tax and other amounts

Where during the pendency of any proceedings under this Act for the recovery of the tax or other amount due in respect of any motor vehicle, the registered owner or the person having possession or control of that motor vehicle creates a charge on, or transfers, whether by way of sale, mortgage, exchange or any other mode of transfer whatsoever, and of his assets in favour of any other person with intent to defeat or delay the recovery of such tax or other amount from him, such charge or transfer shall be void as against any claim in respect of the tax or other amount found payable by him on completion of the said proceedings:

Provided that nothing in this section shall impair the rights of a charge-holder or transferee in good faith and for consideration.

S.15 Transport vehicle permit to be ineffective if tax not paid

Notwithstanding anything contained in the Motor Vehicles Act. 1939 (Central Act 4 of 1939) if the tax due in respect of a transport vehicle is not paid within the prescribed period, the validity of the permit for that vehicle shall become ineffective from the date of expiry of the said period until such time as the tax is actually paid.

S.16 Penalties

Whoever contravenes any of the provisions of this Act or any rule made thereunder shall, on conviction, if no other penalty is elsewhere provided in this Act or the rules for such contravention, be punishable with fine which may extend to one hundred rupees and, in the event of such person having been previously convicted of an offence under this Act or any rule made thereunder with fine which may extend to two hundred rupees.

S.17 Offences by companies

(1) Where an offence under this Act has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained In this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1) where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of or is attributable to any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or o

S.18 Composition of offences

The Regional Transport Officer may accept from any person who has committed, or is reasonably suspected of having committed, an offence under this Act or any rule made there under, by way of composition of such offence, a sum of money not exceeding two hundred and fifty rupees which shall be in addition to the tax or other dues, if any, payable by that person.

S.19 Sharing of the proceeds of tax with local authorities

¹[From the proceeds of the tax collected under this Act every year, there shall be paid before the end of the succeeding year to each local authority such share thereof as the Government may from time to time fix with reference to the recommendation, if any made in this behalf by the State Finance Commission constituted under Article 243 I of the Constitution of India]

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1. Substituted by Act 19 of 1976, pub. in K.G. Ex. No. 869 dated 12-5-2001 w.e.f. 12-5-2000.

S.20 Protection of action taken in good faith

(1) No suit, prosecution or other legal proceeding shall lie against any person for anything which is in good faith done or intended to be done in pursuance of this Act or any rule made thereunder.

(2) No suit or other legal proceeding shall lie against the Government for any damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of this Act or any rule made thereunder,

S.21 Exemption for motor vehicles used for agricultural operation

Any tractor, trailer, or tractor-trailer combination solely used for agricultural operations shall be exempted from the payment of tax:

Provided that motor vehicles used for agricultural operations in relation to lands which are plantations as defined in the Kerala Land Reforms Act, 1963 (1 of 1964) shall not be exempted from the payment of tax:

Provided further that if a motor vehicle designed for agricultural operations is used for purposes other than agricultural operations, whether by the owner himself or by any other person on hire, a reduction in the rate of tax to such extent as may be specified by the Government by notification in the Gazette, shall be allowed.

Explanation:-For the purpose of this section, the expression “agricultural operations” shall include-

(i) tilling, sowing, harvesting or crushing of any agricultural produce or any other similar operation ca

S.22 Exemption from or reduction of tax

The Government may, if they are satisfied that it is necessary in the public interest so to do, by notification in the Gazette make an exemption or reduction in the rate or other modification, either prospectively or retrospective in regard to the tax payable under this Act or under the Kerala Motor Vehicle Taxation Act, 1963 (24 of 1963) or the Kerala Motor Vehicles (taxation of Passengers and Goods) Act, 1963 (25 of 1963)-

(i) by any person or class of persons; or

(ii) in respect of any motor vehicle or class of motor vehicles; or

(iii) in respect of any motor vehicle or class of motor vehicles using a specified route, subject to such terms and conditions as they may deem fit.

S.23 Appeals

Any person who is aggrieved by an order of the Taxation Officer or the Regional Transport Officer made under this Act may within the prescribed time and in the prescribed manner, appeal to such authority as may be prescribed.

S.24 Powers of revision of Transport Commissioner

(1) The transport commissioner may-

(a) Suo motu call for and examine the record of any order passed by any authority or officer under this Act; or

(b) On application, call for and examine the record of any order passed in appeal under Sec. 23, to satisfy himself as to the regularity of the proceedings or the correctness, legality or propriety of the order, and, if in any case it appears to the Transport Commissioner that the order shall be modified, annulled or remitted for reconsideration, he may pass such order thereon as he may deem fit.

(2) An application under clause (b) of Sub section (1) shall be filed in such manner as may be prescribed within three months from the date on which the order to which the application relates was communicated to the applicant, and shall be accompanied by such fee as may be prescribed.

(3) The Transport Commissioner shall not suo motu initi

S.25 Surcharge on tax

¹[The amount of the tax leviable under sub-section (1) of Section 3 shall in the case of any motor vehicle, referred to in sub-item (ii) of item 7 of the Schedule, the registered owner of which is a fleet owner be increased by a surcharge at the rate of forty per cent of the tax so leviable.]

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1. Substituted by Act 10 of 1997. w.e.f. 1-4-1997.

S.26 Escaped assessment

If, for any reason, the whole or any portion of the tax which would have been payable in respect of any motor vehicle under the Kerala Motor Vehicles Taxation Act, 1963 (24 of 1963) or under the Kerala Motor Vehicles (Taxation of Passengers and Goods) Act, 1963 (25 of 1963) or under this Act for any period has escaped assessment, the Taxation Officer may, at any time within, but not beyond, ten years from the expiry of that period, assess the tax which has escaped assessment after issuing notice to the registered owner or the person having possession or control of the motor vehicle and making such Inquiry as he may consider necessary.

Provided that in computing the period of limitation for the assessment of tax under this section, the periods if any, during which assessments has been stayed by an order of any court shall be excluded.

S.27 Rounding off of xxxx fee, penalty, fine etc

Rounding off of ¹[xxxx] fee, penalty, fine etc

The amount of ¹[xxxx] fee penalty, fine or any other sum payable and the amount of refund due, under the provisions of this Act shall be rounded off to the nearest rupee consisting of paise, then if such part is fifty paise or more, it shall be increased to one rupee and if such part is less than fifty paise, it shall be ignored.

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1. Omitted by Act 10 of 1997, w.e.f. 1-4-1997.

S.28 Power of Government to make rules

(1) The Government may, by notification in Gazette, make rules for carrying out of the purposes of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for -

(a) the manner in which tax shall be paid and the documents to be produced for the issue of tax licence:

(b) the form of any tax licence, certificate or declaration and the particulars to be contained therein

(c) the conditions under which duplicate tax licence may be granted and the fee payable for such grant;

(d) the manner in which refund or reduction or exemption may be claimed

(e) the total or partial exemption from liability to payment of the tax in respect of any motor vehicle brought into the State by any person visiting the State, or making a temporary stay in the State, the amount which shall be payable o

S.29 Transitory provision

(1) Where, before the commencement of this Act, tax in respect of a motor vehicle for any period after such commencement has been paid at the rates in force at the time of payment, the registered owner or person having possession or control of such motor vehicle shall be liable to pay, in addition, an amount equal to the difference between the tax payable under this Act for the said period and the tax already paid for that period.

(2) The amount payable under sub-section (1) shall be calculated and paid in such manner and within such time as may be prescribed.

S.30 Repeal and saving

(1) The Kerala Motor Vehicles Taxation Act, 1963 (24 of 1963), the Kerala Motor Vehicles (Taxation of Passengers and Goods) Act, 1963 (25 of 1963) and the Kerala Motor Vehicles Taxation Ordinance, 1975, (7 of 1975) are hereby repealed.

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