Thomas K Samuel v. Joint Regional Transport Officer, Ranni; State of Kerala; Transport Commissioner

Case Details & Bench

Court: High Court of Kerala
Hon'ble Judges: K. Vinod Chandran
Judgment Date: 2015-11-11
Court Decision / Holding: Writ petition dismissed; no costs. Department to issue fresh demand within two weeks reflecting current liability; petitioner to satisfy within one month, failing which vehicle may be seized and sold to recover dues.
Final Disposition: Writ petition dismissed; No costs.

Parties to the Case

Appellants / Petitioners

Thomas K Samuel

Respondents

Joint Regional Transport Officer, Ranni
State of Kerala
Transport Commissioner

Legal Representation & Advocates

Counsels for Petitioners

• Sri G. Hariharan
• Sri Praveen H.

Counsels for Respondents

• Government Pleader Dr. Sebastian Chempapilly

Case Synopsis & Summary

The petitioner, Thomas K Samuel, challenges Ext.P4 demanding payment of a one-time motor vehicle tax at 20% of the purchase value for his Mercedes E 250 CDI, issued under the Kerala Motor Vehicles Taxation Act, 1976 as amended by the Kerala Finance Act, 2015. The petition argues two grounds: (i) Ext.P3 circular suggests a tax liability of Rs. 8,500 for five years, which the petitioner claims is the correct obligation; and (ii) the proviso to the seventh proviso, as amended by the 2014 amendments (Act 1 of 2015), would allow payment of the one-time tax in five instalments within five years from the date of purchase. The respondent State contends that the vehicle was purchased on 31.07.2014, with temporary registration by 19.08.2014 and permanent registration on 15.11.2014, and that the 2014 amendments increased the tax to 20% of the purchase value, with liability arising under the amended schedule from 13.11.2014 onward; the 7th proviso is not carried forward in the amended Act, so the five-installment option does not apply. The court notes that the amendment to the Taxation Act, not the old circular, governs the liability, citing Hilal v. State of Kerala to support this principle. The writ petition is dismissed; the department is directed to issue a fresh demand in line with the current liability within two weeks, and the petitioner must satisfy it within one month or face seizure and sale of the vehicle.

Provisions of Law Cited

Kerala Motor Vehicles Taxation Act, 1976Kerala Finance Act, 2015Kerala Taxation Laws (Amendment) Act 2014 (Act 1 of 2015)Ordinance No. 36/2014Revenue Recovery Act

Submissions & Arguments

Contentions of Appellants / Petitioners

The applicant argues (i) Ext.P3 Circular fixes a lower tax liability (Rs. 8,500) for five years and should have been accepted, and (ii) the 7th proviso, as amended, permits payment of one-time tax in five instalments within five years from the date of purchase. He purchased the vehicle on 31.07.2014; temporary registration was valid until 17.09.2014 and permanent registration followed on 15.11.2014. The petitioner contends that the old regime should apply or, at least, the five-installer option should be available; however, after amendment the rate is 20% and the proviso is not present in the amended Act.

Contentions of Respondents

The Special Government Pleader counters that the 2015 amendment increased the tax to 20% from 13.11.2014 and the vehicle’s registration after that date binds the petitioner to the amended liability; Ext.P3 circular cannot override the statute; the seven proviso is not preserved in the amended Act, so the five-instalment option is unavailable. The writ petition is devoid of merit and the department should issue a fresh demand reflecting current liability; the petitioner must pay within a month or face seizure.

Cited Precedents (1)

Case Name	Citation	Treatment	Explanation
Hilal v. State of Kerala	2012 (3) KLT 438	Positive	Cited to support that tax liability is governed by the amended statute rather than earlier circulars; post-amendment provisions govern the liability.

Extracted Judgment Text

Exact text extracted from official judgment records.

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** **PRESENT:** **THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN** **WEDNESDAY, THE 11TH DAY OF NOVEMBER 2015/20TH KARTHIKA, 1937** ## **WP(C).No. 25953 of 2015 (T)** **----------------------------** ## **PETITIONER(S):** **--------------------------** **THOMAS K SAMUEL, AGED 35 YEARS S/O. SAMUEL, KAKKATTUKUZHIYIL HOUSE, EDAPPAVOOR P.O. AYIROOR, KOTTATHOOR, PATHANAMTHITTA-680 614.** **BY ADVS.SRI.G.HARIHARAN SRI.PRAVEEN.H.** ## **RESPONDENT(S):** - **----------------------------** **1. THE JOINT REGIONAL TRANSPORT OFFIER RANNI-689 672.** ## **2. STATE OF KERALA** - **REPRESENTED BY THE PRINCIPAL SECRETARY TO GOVERNMENT FINANCE DEPARTMENT, NORTH BLOCK, SECRETARIAT THIRUVANANTHAPURAM-695 001.** ## **3. THE TRANSPORT COMMISSIONER TRANS TOWERS, VAZHUTHACAUD THIRUVANANTHAPURAM-695 014.** **R1-R3 BY ADV. GOVERNMENT PLEADER DR. SEBASTIAN CHEMPAPILLY** **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11-11-2015, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** ## **WP(C).No. 25953 of 2015 (T)** ## **--------------------------------------** ## **APPENDIX** ## **PETITIONER(S)' EXHIBITS** **-------------------------------------** **EXT.P1 : COPY OF THE INVOICE DTD.31.7.2014 ISSUED BY THE DEALER M/S. RAJASREE MOTORS PRIVATE LIMITED EVIDENCING PURCHASE OF A MERCEDEZ BENZ E 250 CDI BY THE PETITIONER. EXT.P2 : COPY OF THE REGISTRATION CERTIFICATE OF MOTOR CAB BEARING REGISTRATION NO.KL-62/B 3400. EXT.P3 : COPY OF THE CIRCULAR NO.7/2014 ISSUED BY THE TRANSPORT COMMISSIONER. EXT.P4 : COPY OF THE DEMAND NOTICE DTD.5.2.2015 ISSUED BY THE RESPONDENT DEMANDING A SUM OF RS.309900/- PLUS ADDITIONAL TAX AS MOTOR VEHICLE TAX DUE ON THE VEHICLE MENTIONED IN EXT.P2 FOR THE PERIODS 20.11.22014 TO 30.9.2019. EXT.P5 : COPY OF THE NOTIFICATION ISSUED IN PURSUANCE TO ORDINANCE NO.36/2014 DTD.13.11.2014 BY THE GOVERNMENT OF KERALA. EXT.P6 : COPY OF THE RELEVANT PORTION OF THE FINANCE BILL RELATING THE VARIOUS AMENDMENTS MADE IN THE MOTOR VEHICLE TAXATION ACT FOR THE FINANCE YEAR 2015-2015. EXT.P7 COPY OF THE NOTICE DTD. 26.8.15 ISSUED BY TE 1ST RESPONDENT DEMANDING A SUM OF RS. 9,29,746/-** **EXT.P8 COPY OF THE NOTIFICATION NO. 2500/LEG.A2/2014/LAW DTD. 23.07.14 (RELEVANT PAGES)** ## **RESPONDENT(S)' EXHIBITS** - **ANNEXURE R1(A) RELEVANT PORTION OF THE ACT 1 OF 2015** - **ANNEXURE R1(B) COPY OF E-MAIL FROM MS/. RAJASREE MOTORS, KOCHI** **ANNEXURE R3(A) COPY OF THE JUDGMENT DTD. 25.2.15 IN W.P.(C) NO. 5017/2015** **ANNEXURE R3(B) COPY OF THE E-MAIL DTD. 23.9.15 SENT BY SUB REGIONAL TRANSPORT OFFICER, RANNI** **CONTD ..2..** **.. 2 ..** **WP(C).No. 25953 of 2015 (T)** **--------------------------------------** **ANNEXURE R3(C) COPY OF THE E-MAIL RECEIVED FROM ICICI BANK DTD. 26.9.15** **ANNEXURER3(D) COPY OF THE CHECK REPORT DTD. 14.5.15 ANNEXURE R3(E) COPY OF THE CIRCULAR NO. 14902/B2/08/ TRAN DTD. 20.4.09 ANNEXURE R3(F) COPY OF THE CIRCULAR NO.15437/B2/2012/TRAN DTD. 12.11.12. ANNEXURE R3(G) COPY OF G.O(RT) NO. 274/2015/TRAN. DTD. 24.7.15 ANNEXURE R3(H) COPY OF G.O(RT) NO. 28/2014/TRAN DTD. 19.3.14 ANNEXURE R3(I) COPY OF THE LETTER NO. B2/20077/TC/2015 DTD. 5.10.15 OF THE TRANSPORT COMMISSIONER, TVM.** **// TRUE COPY //** **P.A TO JUDGE.** **SB** ## **K. VINOD CHANDRAN, J.** ## **===================== W.P.(C) No.25953 of 2015 - T ====================== Dated this the 11[th] day of November, 2015** ## **J U D G M E N T** The petitioner, the owner of a Mercedes Benz car is before this Court challenging Ext.P4 proceedings, by which the petitioner was directed to pay one time tax @ 20% of the purchase value of the vehicle, failing which steps under the Revenue Recovery Act was threatened. 2. The learned Counsel for the petitioner has two submissions; one, that going by Ext.P3 Circular of the Transport Commissioner, he was liable to pay only Rs. 8,500/- as motor vehicle tax for a period of five years. Immediately, it is to be noticed that despite the petitioner raising such contention, he has not cared even to pay the said amount to the Department, which shall be noticed, when the facts are narrated. The next contention is that proviso substituted for the 7[th] proviso in the **2** W.P.(C) No.25953 of 2015 - T Kerala Motor Vehicles Taxation Act, 1976 as amended by the Kerala Finance Act, 2015 (Act 29 of 2014) would enable the payment of one time tax within five instalments in the 5 years subsequent to the purchase of the vehicle. 3. The learned Special Government Pleader however would, on the basis of the various dates and on a reference to the amendment brought in the Kerala Motor Vehicles Taxation Act, submit that both the contentions of the petitioner cannot be sustained. The petitioner purchased a vehicle with an invoice dated 31.07.2014 and the delivery was effected on 19.08.2014. on The petitioner had obtained a temporary registration 19.08.2014 itself, which validity was current till 17.09.2014. The petitioner hence ought to have produced the vehicle for permanent registration and payment of tax, within the one month period, in which the temporary registration was valid. 4. Admittedly, the petitioner did not produce the said vehicle for permanent registration. At that point of time, the tax **3** W.P.(C) No.25953 of 2015 - T applicable to the Luxury Motor Cabs was 15% of the purchase value of the vehicle, being the life time tax for 15 years. However by amendment brought in by the Kerala Taxation Laws (Amendment) Act 2014 (Act 1 of 2015), the rate of tax was enhanced to 20% of the purchase value. The petitioner brought the vehicle for permanent registration on 15.11.2014 and produced the vehicle for inspection on 17.11.2014. The petitioner's vehicle was granted registration No. KL/62B/3400, but however no tax was paid. The petitioner again made an application for taxi permit on 20.11.2014, but however did not pursue the same nor did he produce the vehicle or pay the tax due as the the per permanent registration granted by department. 5. The vehicle was detained on petitioner's 14.05.2015, when the vehicle was transporting a newly married couple. Only because of the presence of the newly married couple, the Motor Vehicles Officer did not seize the vehicle but **4** W.P.(C) No.25953 of 2015 - T issued a check report, which eventually led to Ext.P4 proceedings, which is now said to be again revised on the basis of the current tax liability. 6. Act 1 of 2015 having amended the schedule of the Taxation Act and enhanced the rate of tax from 15% to 20% w.e.f 13.11.2014, the petitioner cannot claim for a levy of tax at the rates applicable earlier, since the petitioner brought the vehicle for registration only after 13.11.2014. Sufficient support can be garnered for the above proposition from **Hilal** v. **State of Kerala [2012 (3) KLT 438]** . The further contention with respect to the Circular also would not be tenable since, the Act specifically provided for the tax liability. 7. The next contention is with respect to the payment of tax in five instalments as provided in the 7[th] proviso substituted by Act 29 of 2014. The learned Special Government Pleader has produced the Kerala Motor Vehicle Taxation Act 1976 as amended by Kerala Finance Act 2015, which does not **5** W.P.(C) No.25953 of 2015 - T contain the said proviso. 8. In such circumstance, the writ petition is devoid of merit and the same is liable to be dismissed. The petitioner shall comply with the demand made by the department. The department shall hence issue a fresh demand in accordance with the present tax liability as per the Kerala Motor Vehicles Taxation Act 1976 as amended by the Kerala Finance Act, 2015 within a period of two weeks from today and the petitioner shall satisfy the same within a further period of one month from the date of issuance of the communication. If the petitioner does not pay the said amount, the vehicle shall be liable for seizure and for sale for realisation of the dues to the Government. The writ petition would stand dismissed. No costs. **Sd/-** ## **K. VINOD CHANDRAN, JUDGE** SB/12/11/2015 // true copy // P.A to Judge.