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TMI Blog2003 (7) TMI 747X X X X Extracts X X X X X X X X Extracts X X X X ..... view of the fact that their liability to tax had become crystallised by an earlier judgment, though it is stated that the validity of the relevant provision is pending adjudication in the Supreme Court at the instance of another dealer, who is not a party to these writ petitions. 2. Section 6 of the Bihar Motor Vehicles Taxation Act, 1994 (hereinafter called 'the Taxation Act') provides that tax at the annual rate specified in Schedule III in lieu of the rates specified in Schedule I shall be paid by a manufacturer of, or a dealer in motor vehicles, in respect of the motor vehicles in his possession, in course of his business as such manufacturer or dealer under the authorisation of the trade certificate granted under the Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at Sub-section (27) of Section 2 of the Motor Vehicles Act separately defines a motor cycle and since the vehicles dealt with by them satisfy the definition of 'motor cycle', they cannot be deemed to be motor vehicles as defined in Section 2(28) of the Act. But it has to be noted that Section 2(c) of the Taxation Act adopts the definition of motor vehicles in the Motor Vehicles Act and Section 6 of the Taxation Act imposes a liability to tax on a dealer in motor vehicles. Though motor cycles may be a species of motor vehicles, obviously, it would come within the definition of the motor vehicles as contained in the Motor Vehicles Act and as adopted by the Taxation Act. Therefore, the claim that two wheelers in which the petitioners a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... limit was fixed. Some of the dealers apparently did not file objections within the time. Whatever it be, the liability to penalty was upheld by the authority which called upon them to pay the tax and the penalty and threatening coercive action on their failure to do so. It is at that juncture that the petitioners have again approached this Court with these writ petitions. 5. Though an attempt was made by learned counsel appearing for the petitioners to contend that no tax was leviable under Section 6 of the Taxation Act on dealers of two wheelers, the said argument cannot be accepted on the clear language of Section 6 of the Taxation Act read with the definition of Motor Vehicles in Section 2(28) of the Motor Vehicles Act as adopted by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Government. Section 23 of the Taxation Act read with Rule 4 of the Taxation Rule does not give any discretion as such to the authority concerned. Delayed payment of tax automatically attracts penalty under Section 23 of the Act, and Rule 4 of the Taxation Rules specifies the rate of penalty depending on the extent of the delay in making the payment. In Taxing Office v. Ajit Singh , dealing with the corresponding provision in the Bihar and Orissa Motor Vehicles Taxation Act, 1930 imposing penalty for default in payment of tax, the Supreme Court took the view that the penalty payable was the prescribed penalty and nothing more or nothing less. In our view, the position under the Taxation Act of 1994 read with the Taxation Rules made thereun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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