TMI Blog1987 (7) TMI 577X X X X Extracts X X X X X X X X Extracts X X X X ..... s vehicle, to wit a 12 ton lorry bearing Registration No. MYH 3797, to the second respondent on 2.1.71 but neither of the respondents reported the transfer of the vehicle to the Regional Transport Officer in compliance with the terms of Sub-Section (1)(a) and Sub-Section (1)(b) of Section 31 of the Motor Vehicles Act. Be that as it may, it came to the notice of the Regional Transport Officer subsequently that the tax payable for the vehicle under Section 3(1) of the Mysore Motor Vehicles Taxation Act, 1957 (hereinafter the Taxation Act) for the period 1.10.72 to 31.3.74 amounting to ₹ 6,300 had not been paid. This led to a demand notice being issued to the first respondent to pay the arrears of tax together with penalty. The first respondent refuted his liability to pay the arrears of tax on the ground he had transferred the vehicle to the second respondent as early as on 2.1.Tl. A demand notice was then issued to the second respondent and he too refuted his liability to pay the arrears of tax on the plea that the vehicle was not in a fit condition and it had been lying in a workshop during the relevant period without repairs being affected for want of spare parts. Since both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ept' occurring in Section 3(1) must be construed as 'kept for use' and that in the absence of evidence to show that the vehicle had been made use of or that it had been 'kept for use', the currency of the Certificate of Registration would not by itself attract tax liability. ,For taking such a view the High Court placed reliance on an earlier decision rendered in Naraina Reddy v. Commr. of Transport, [1971] 2 Mys. Law Journal 319). The Bench also held, following the view taken in yet another earlier case B.G. Bhagwan v. Regional Transport Officer, (AIR 1967 Mysore 139) that in the absence of a fitness certificate, Section 38 of the Motor Vehicles Act would be attracted and therefore a Certificate of Registration will not have currency without a co-extensive certificate of fitness for the vehicle. Even without going into the correctness of the view taken by the High Courts, we would like to point out that the two earlier decisions do not really provide support for the view taken by the High Court. Bhagwan's case was decided on the basis of the peculiar facts therein. What had happened in that case was that the Superintendent of Police made a surprise check ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ificate, it follows that the Certificate of Registration issued to the petitioner was no more current. That being the position, the Explanation to Section 3(1) of the Mysore Motor Vehicles Taxation Act, 1957, is inapplicable to the facts of the present case. (Emphasis supplied) In so far as the decision in Naraina Reddy's case is concerned, the permit-holder therein had paid the tax for his stage carriage for the quarter ended 30.6.59 but failed to pay the tax for the next two quarters ending with 30.9.59 and 31.12.59. On 5.2.60 he paid the tax for the months of February and March 60 alone. The non-payment of tax for the period 1.7.59 to 5.2.60 was subsequently noticed and a demand was made on him to pay the arrears of tax for the abovesaid period together with penalty. The permit-holder contended that the demand was illegal because the vehicle was not in Use during the relevent period and he had actually kept it in a workshop at Madanapalle in Andhra Pradesh from 30.6.59 and furthermore the certificate of fitness for the vehicle had expired on 30.6.59 itself and it had been renewed only on 5.2.60 and besides he had also surrendered the Certificate of Registration to the Trans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Taxation Act and the effect of the Explanation to it. At the relevant time the Mysore Motor Vehicles Taxation Act 1957 (now the Karnataka Motor Vehicles Taxation Act, 1957) was in force and Section 3(1) and the Explanation read as follows:- (1) A tax at the rates specified in Part A of the Schedule shall be levied on all motor vehicles suitable for use on roads, kept in the State of Mysore; Provided that in the case of motor vehicles kept by a dealer in or manufacturer of, such vehicles for the purposes of trade, the tax shall only be levied and paid by such dealer or manufacturer on vehicles permitted to be used on roads in the manner prescribed by rules made under the Motor Vehicles Act, 1939. Explanation.--A motor vehicle of which the certificate of registration is current shall, for the purpose of this Act, be deemed to be a vehicle suitable for use on roads. It will also be apposite to extract the relevant portion of Section 4 since Sections 3 and 4 go together. 4. Payment of Tax.--(1) The tax levied under Section 3 shall be paid in advance by the registered owner or person having possession or control of the motor vehicle, for a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot their condition. They exclude from the Entry, farm machinery aeroplanes, railways etc. which though mechanically propelled are not suitable for use on roads. The inclusion of trams using tracks which may be on roads or off them, makes the distinction still more apparent. It, therefore, follows that the same meaning should be given to those words occurring in Section 3(1) and the Explanation also. The resultant position that emerges is that Section 3(1) confers a right upon the State to levy a tax on all motor vehicles which are suitably designed for use on roads at prescribed rates without reference to the road worthy condition of the vehicle or otherwise. Section 4 enjoins every registered owner or person having possession or control of the motor vehicle to pay the tax in advance. The Explanation to Section 3(1) contains a deeming provision and its effect is that as long as the Certificate of Registration of a motor vehicle is current, it must be deemed to be a vehicle suitable for use on the roads. The inevitable consequence of the Explanation would be that the owner or a person having control or possession of a motor vehicle is statutorily obliged to pay the tax in advanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 3 at the prescribed rate and in advance and the liability to pay tax continues as long as the Certificate of Registration is current but if it so happens that in spite of the Certificate of Registration being current, the vehicle had not actually been put to use for the whole of the period or a continuous part thereof, not being less than one calendar month, the person paying the tax should apply to the Prescribed Authority and obtain a refund of the tax for the appropriate period after satisfying the Authorities about the truth and genuineness of his claim. Sections 3 and 4 are absolute in their terms and the liability to pay the tax in advance is not dependant upon the vehicle being covered by a Certificate of Fitness or not. Even if the vehicle was not in a road worthy condition and could not be put to use on the roads without the necessary repairs being carried out, the owner or person having possession or control of a vehicle is enjoined to pay the tax on the vehicle and then seek a refund. Perhaps in exceptional cases where the vehicle has met with a major accident or where it is in need of such extensive repairs that it would be impossible to put the vehicle to use or whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rsons liable to pay the tax to ply the vehicle unlawfully without payment of tax and later on justify their non-payment by setting up a plea that the vehicle was in repair for a continuous period of over a month or the whole of a quarter, half-year or year as they choose to claim. In view of a legislative change in the Act we do not find any necessity to go into the question whether the words kept in the State of Mysore should be construed as kept for use in the State of Mysore . It may be remembered that this construction found favour with the Karnataka High Court in its decision in Naraina Reddy's case and Reddappa's case. The Words kept in the State of Mysore and the proviso to the Section have been omitted by Karnataka Act 38 of 1976 and therefore, the discussion on that point will only be of academic value now. It is for that reason we do not feel it necessary to go into that aspect of the matter. The next factor for consideration is whether the impact of Section 38 of the Motor Vehicles Act on Section 22 of the said Act will have its ramifications on Section 3(1) and the Explanation of the Taxation Act. Section 22 deals with the necessity for registration of mot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne driving or using a vehicle without a certificate of fitness for carrying passengers or goods and trying to take umbrage for the violation by contending that he was entitled to make such use because of the certificate of registration issued to the vehicle being current. It has also to be noticed that Section 38 contains a safety measure while Section 3 of the Taxation Act pertains to a compensatory measure. The former cannot therefore limit the operation of the latter i.e. Section 3(1) of the Taxation Act and the explanation thereto. In the light of our discussion it follows that Section 3(1) of the Taxation Act and its Explanation have to be construed on their own force and not with reference to Section 38 of the Motor Vehicles Act. The combined effect of Sections 3, 4 and 7 of the Act is that the State is empowered to levy tax on all motor vehicles which are suitably designed and manufactured for use on the roads. The Explanation provides that every motor vehicle of which a Certificate of Registration is current shall be deemed to be a vehicle suitable for use on roads and liable to pay tax as a potential user of the roads at the rates prescribed by the Government. Section 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
