TMI Blog2013 (6) TMI 782X X X X Extracts X X X X X X X X Extracts X X X X ..... otor Vehicle Rules, 1989 (hereinafter referred to as MV Rules, 1989) issued by the State Transport Authority, Nagaland, Kohima. It is stated that permits are valid up to 26.02.2018 and authorization issued in accordance with MV Rules, 1989 is valid up to 26.02.2014. Petitioner submitted a representation dated 27.04.2013 before respondent for acceptance of the authorisation fee under the KMVT Act on quarterly basis vide Annexure-A. Said representation came to be considered and endorsement came to be issued on 07.05.2013 vide Annexure-B informing the petitioner that vehicles in question are covered by All India Tourist Permits issued by State Transport Authority, Nagaland to operate in the State of Karnataka and therefore, registered owner of All India Tourist Vehicles covered by permit issued under Section 88(9) of MV Act, 1988 are required to pay tax for entire period of authorization. Said authorization relating to petitioner s vehicles has been issued by the State Transport Authority, Nagaland in exercise of the powers under Rule 83(2) and 87(2) of MV Rules, 1959 in Form No.47. A perusal of said Form No.47 would indicate that at column No.13, authorization to ply the vehicles in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... STATE OF GUJARAT AND OTHERS vs AKHIL GUJARAT PRAVASI V.S. MAHAMANDAL OTHERS reported in (2004)5 SCC 155 and in the case of MAHAKOSHAL TOURIST, NAPIER TOWN OTHERS vs STATE OF M.P. OTHERS reported in (2002) 7 SCC 245. 7. The provisions of KMVT Act come into operation the moment a motor vehicle is issued with certificate of registration as required under the provisions of MV Act which are suitable for using on roads. Taxes in respect of such vehicles is levied at the rates specified in Part-A and Part-B of Schedule to the KMVT Act for different classes of motor vehicles. Section 3 of KMVT Act is the charging section. Section 4 of KMVT Act provides for mode of payment of tax and it also provides for levy of tax on all motor vehicles suitable for use on road at the rates specified in Part-A of the Schedule. Explanation to Section 3 of KMVT Act would indicate that motor vehicle of which certificate of Registration is current, shall for the purposes of the Act, be deemed to be a vehicle suitable for use on roads. Sub-section (2) of Section 3 provides for rate of tax as specified in Part-B of the Schedule to be levied on motor vehicles for periods shorter than a quarter, but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nted in Form 47, in case the authorization is in paper document mode, subject to the payment of taxes or fees, if any, levied by the concerned State. The authority which grants the authorization shall issue to the permit holder separate receipts for such taxes or fees in respect of each bank draft and such receipts shall be security printed watermark paper carrying such hologram as may be specified by the concerned State/Union territory: Provided that the bank drafts received in respect of taxes or fees shall invariably be forwarded by the authority who grants the authorisation to the respective States: Provided also that the use of such security printed watermark paper carrying such hologram shall come into force on or before six months from the date of the Central Motor Vehicles (Third Amendment) Rules, 2002. 10. A perusal of the authorization would indicate at column No.13, petitioner has been permitted to ply the vehicle in those states as specified therein subject to payment of tax by the permit holder in respective States. 11. It is in this background, sub-rule (2) of Rule 83 would be of relevance and as such, same has been extracted herein above. A perusal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was also noticed that by virtue of Section 7 of KMVT Act, a plea put forward by the registered owner of a motor vehicle or a person in possession and control of the vehicles would be entitled to make an application seeking for refund of tax if he is able to demonstrate and prove that said vehicle was not used for continuous period for over a month or whole of a quarter, half year or year as in a given set of situation that may arise. It has been further held in GOPALAKRISHNA SHENOY s case that principle underlying the Taxation Act is that every motor vehicle issued with a certificate of registration is to be deemed a potential user of the roads all through the time and if the certificate of registration is current it is liable to pay tax under Section 3(1) read with Section 4. As such, transport authorities need not justify the demand for tax by proving that the vehicle is in a fit condition and can be put to use on the roads or that it had plied on the roads without payment of tax, inasmuch as, it would be impossible for the State authorities to keep monitoring all the vehicles at all times and prove that each and every registered vehicle is in a fit condition and would be m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ataka State permits are being issued, choice is left to the registered owner or to the person who is in possession and control of the vehicle to pay tax either quarterly, half yearly or yearly but in respect of the vehicles for which All India Permit is issued and authorization is issued by another State Transport Authority as in the instant case, State of Nagaland, such vehicles cannot be called upon to pay tax for the whole year when there being no express provision under the Karnataka Motor Vehicles Taxation Act, 1959, and as such, it would be hit by Article 14 of the Constitution of India. As already noticed herein above, latitude with which State can be permitted can be examined if it satisfies twin tests as enumerated herein above namely, it must make a classification and such classification if any should have a rational nexus to the objects sought to be achieved. 16. In the instant case, authorization has been issued by the State of Nagaland for a period of one year i.e., from 20.03.2013 to 19.03.2014. In the representation made by the petitioner dated 27.04.2013 to the respondent, tax is sought to be paid on quarterly basis contending that said vehicle intend to ply cont ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
