TMI Blog2003 (11) TMI 631X X X X Extracts X X X X X X X X Extracts X X X X ..... 0-C of the Act are repugnant to the Motor Vehicles Act, 1988 [hereinafter referred to as 'the MV Act'] enacted by Parliament in exercise of its powers under Entry 35, List III of the Seventh Schedule to the Constitution, which has been in force since 1st July 1989; that the amendments introduced by Act 27 of 1999, by which the impugned provisions are introduced in the Act, deal with the subject-matter covered by Section 66 read with Section 192A of the MV Act; that the impugned provisions provide for confiscation of the vehicle thereby enhancing the penalty provided by the MV Act which sets out only certain amounts of fine and thus repugnancy arises; that there are provisions in the Act for recovery of tax and, therefore, the provision for confiscation of the vehicle is uncalled for. 3. On behalf of the State, it is contended that the Act and the amendments made thereto are within its competence as they fall under Entries 56 and 57, List II of the Seventh Schedule to the Constitution and is within the legislative competence and the MV Act does not set out any principle of taxation subject to which the enactments made Entry 56, List II of the Seventh Schedule to the Const ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that Parliament has enacted MV Act in exercise of powers under Entry 35, List III of the Seventh Schedule to the Constitution, which specifically covers motor vehicles and in terms of Article 254 of the Constitution prevails over any State law covering the same field; that levy of tax on motor vehicles is within the exclusive domain of the State Legislature and similarly regulatory provisions under the MV Act fall under Entry 35, List III of the Seventh Schedule to the Constitution and the Union has already enacted a law in that regard. He submitted that a careful reading of Section 16(6) of the Act would indicate that the cause or the incident which attracts confiscation is violation of the provisions of Sections 66 and 192A of the MV Act and not for the purpose of the taxation. Alternatively, he submitted that if for any reason it is to be held that it is also for the purpose of recovery of taxes, he contended that an examination of the scheme of the provisions of the Act and Rules framed thereunder are vague leading to such arbitrariness as to vitiate the provisions in terms of Article 14 of the Constitution. He submitted that while a provision has been made for the purpose o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in violation of its condition subject to the exceptions available under Section 16(6) of the Act and under the Act, tax has to be paid in advance by such user and, therefore, plying of a vehicle having a contract carriage permit as a stage carriage amounts to plying without a permit within the meaning of Explanation VII of the Schedule I to the Act and in this context, drew our attention to not only Explanation VII of the Schedule I to the Act but also to the definition of contract carriage as defined under Section 2(7) of the MV Act; that the two categories of motor vehicles, namely, contract carriages and the stage carriages have different rates of taxation; that unless such tax has been paid no permit will be available; that operation of a vehicle without a permit obviously means that tax due to the State has not been paid under the Act. He, therefore, submitted that the provisions under the Act are valid and fall within the competence of the State Legislature and he fully supported the view taken by the High Court that there is absolutely no repugnancy between the MV Act and the Act inasmuch as they operate in two different fields - one is a regulatory measure while the other i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te Authority. Explanation - The time requisite for obtaining certified copy of order of confiscation shall be excluded while computing period of thirty days referred to in the subsection. (2) The Appellate Authority shall send intimation in writing of lodging of appeal to the Taxation Authority. (3) The Appellate Authority may pass such order of interim nature for custody, or disposal, if necessary of the confiscated vehicle as may appear to be just in the circumstances of the case. (4) On the date fixed for hearing of the appeal or on such date to which the hearing may be adjourned, the Appellate Authority shall peruse the record and hear the parties to the appeal if present in person, or through a legal practitioner and shall thereafter proceed to pass an order of confirmation, reversal or modification of the order of confiscation. (5) The Appellate Authority may also pass such orders of consequential nature, as it may deem necessary. (6) Copy of final order or of order consequential nature, shall be sent to the Taxation Authority for compliance. 20-B Revision before Court of Session against order of Appellate Authority- (1) If the owner of a vehicle agg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed. So far as the link that is sought to be established with taxation procedures, snaps the moment tax is paid and vehicle is released. In such an event also motor vehicle can be confiscated on a report that such vehicle had been seized. The cause or basis for confiscation of motor vehicle is driving such vehicle contrary to Section 66 of the MV Act read with Section 192A of the MV Act and a report of seizure under Section 16(3) of the Act. 10. Sub-section (3) of Section 16 states that the Taxation Authority or any other officer authorised by the State government in this behalf may if it or he has reason to believe that a motor vehicle has been or is being used without payment of tax, penalty or interest due, seize and detain such motor vehicle and for this purpose take or cause to be taken any step as may be considered proper for the temporary safe custody of such motor vehicle and for the realisation of tax due. Sub-section (3) is only intended as a step for recovery of the tax, penalty or interest due and the vehicle is detained until such time as such tax or other liabilities are realised. The mere fact that such vehicle is seized for that purpose by itself will not result ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the two enactments. Therefore, we hold that the provision of Section 16(6) of the Act and the consequential provisions thereto are repugnant to Section 66 read with Section 192A of the MV Act and hence, invalid as the State Law has not complied with requirements under Article 254(2) of the Constitution of obtaining assent of the President to the State Law. 14. Analogy is sought to be drawn by placing reliance on S. Satyapal Reddy and Ors. v. Government of A.P. [1994]3SCR934 and Ors., and Dr. Preeti Srivastava and Anr. v. State of M.P. and Ors., AIR1999SC2894 wherein prescription of higher qualification in the context of admission in colleges or appointment to posts was considered. Analogy is neither apt nor sound in law. The qualification prescribed by one authority is binding on the other authority. If higher qualifications are prescribed by the other authority who has to make selections for admission in colleges or appointment to posts what it does is to enhance the quality of qualification prescribed without adversely affecting the same and adds further the intent and purpose of prescription of the qualification by the other authority and, therefore, is not in conflict with o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
