TMI Blog2000 (5) TMI 1096X X X X Extracts X X X X X X X X Extracts X X X X ..... Bombay Motor Vehicles Tax (Gujarat Amendment) Act, 1992, is ultra vires being violative of Articles 14 and 19 of the Constitution of India. 2. The respondent No. 1 is the owner of omnibus bearing registration No. GRQ 8403. The said vehicle had not been used or kept for use during the period from 1-7-1995 to 31-3-1996. He intimated the non-user of the said omnibus to the Motor Vehicle Inspector. He claimed refund of the tax for the said period. His claim for refund was not allowed on the ground that the omnibus had been kept in non-use for a period exceeding three months and he failed to satisfy that such non-use was for the reasons beyond his control. Consequently, the appellant issued demand notice dated 29-3-1996 demanding payment of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e month of the period for which the tax has been paid so however that, except as otherwise provided in clause (b) the total amount of a refund in a year shall not exceed - (i) ... (ii) ... (b) Where a registered owner or a person having possession or control of a designated omnibus who has paid tax under this section proves to the satisfaction of the State Government or such officer not below the rank of the Director of Transport, Gujarat State, as may be notification in the Official Gazette be authorised in this behalf by the State Government that the designated omnibus in respect of which the tax has been paid has for reasons beyond the control of such owner or person not been used or kept for the use for a continuous period of n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of traffic. The Act does not provide for levy and collection of tax on vehicles which do not use, or are kept for use of the public roads in the State. The High Court also noticed that other measures and provisions are already available to check the evasion of the tax. The High Court concluded that, insistence to satisfy the State Government or authorised officer as to the reasons beyond the control of the registered owner or the person in possession for non-use of the vehicle was beyond the legislative competence of the State. In this view, the words for reasons beyond the control of such owner or person occurring in clause (b) of Sub-section (5) of Section 3A of the Act were struck down. 6. The learned senior counsel for the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d a declaration was also made that he would not remove the said vehicle from the place mentioned in the Form without the previous permission of the taxation authority and that the certificate of taxation in respect of the said vehicle was also surrendered. This apart the authorities have got powers to detect the use of the vehicle on the road which otherwise was shown as in non-use and to impose penalty or to prosecute for the contravention as the case may be. 8 . We have considered submissions of the learned Counsel for the parties. The fact that are not in dispute are: the respondent No. 1 filed Form NT declaring non-use of the vehicle in question for the period 1-7-95 to 31-3-96; the report submitted by the motor vehicle Inspector reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the amending Act 3 of 1992, it is stated : Having regard to the commercial use of omnibuses exclusively used as contract carriages in normal circumstances, it is generally uneconomic for the registered owners of such omnibuses to put such omnibuses to non-use for a very long time. Cases have come to the notice of the Government indicating that many a time such omnibuses which purported to have been put to non-use were operated clandestinely resulting in evasion of the tax and consequent loss of revenue to the Government. In order, therefore to prevent evasion of tax, it was considered necessary to make a provision to restrict the refund of the tax to a total period of three months of non-use in a financial year, in normal circumstances. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or Vehicle Inspectors could also check and verify about the availability of the vehicle in place of non-use . Any clandestine operation or the absence of vehicle from the declared place of non-use whenever and wherever detected attracts heavy penalty to the extent of 25% of the tax due and for repetition of such contraventions the amount of penalty is coercively increased. Further claim for refund of tax for the period of non-use of vehicle is allowed only if the owner or any person having possession or control of a designated omnibus proves to the satisfaction of the taxation authority that the bus in respect of which the tax has been paid has not been used or kept for use for a particular period. If the authorities are not satisfied as t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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