Mohammed Fayiz K.M. vs. The Transport Commissioner

WP(C)/24873/2018HC KeralaGSTCNR KLHC01056460201816 July 2019Bench: HONOURABLE MR.JUSTICE S.V.BHATTI18 pages

AI SummaryRemanded

Facts

Petitioners, owners of vehicles registered in other states (e.g., Puducherry), were issued notices by Kerala RTOs demanding re-registration in Kerala and payment of life tax for using their vehicles within the state.

Held

The Court upheld the validity of Section 3(6) of the Kerala Motor Vehicles Taxation Act, 1976. It ruled that while original registration and tax are valid in the home state, vehicles used in Kerala beyond thirty days are liable to pay vehicle tax under Section 3(6). However, the impugned orders demanding re-registration and payment of life tax in Kerala were set aside as illegal.

Key Issues

The key legal issues were the constitutional validity of Section 3(6) of the Kerala Motor Vehicles Taxation Act, 1976, and the liability of vehicles registered in other states to pay tax and re-register in Kerala if used beyond a stipulated period.

Sections Cited

Section 3(6) of Motor Vehicles Taxation Act, 1976, Chapter IV of Motor Vehicles' Act, 1988, Annexure III of Schedule of Act 1976

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI TUESDAY, THE 16TH DAY OF JULY 2019 / 25TH ASHADHA, 1941 WP(C).No.19914 OF 2018(L) PETITIONER/S: M/S. BROTHERS TRANSPORT No.20, 3RD CROSS NETHAJI NAGAR, ARIYANKUPPAM,PUDUCHERRY-605 007, REPRESENTED BY ITS PARTNER, MR. GEORGE ROSHAN. BY ADVS. SRI.G.HARIHARAN SRI.PRAVEEN.H. RESPONDENT/S: 1 THE JOINT REGIONAL TRANSPORT OFFICER MATTANCHERRY- 682 001. 2 THE TRANSPORT COMMISSIONER TRANS TOWERS, VAZHUTHACAUD, THIRUVANANTHAPURAM - 695 014. 3 THE REGIONAL TRANSPORT OFFICER PUDUCHERRY- 605 001. BY SR. ADV. N VENKITARAMAN ADV. AKHIL SURESH SPL.G.P. SRI.P.RAVINDRANATH SPL. G.P. SRI P.N. SANTHOSH KUMAR DR.THUSHARA JAMES, GP SMT.M.M. JASMIN GP THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 09-07- 2019, ALONG WITH WP(C).16080/2018(H), WP(C).16465/2018(G), WP(C).16898/2018(J), WP(C).23079/2018(H), WP(C).24873/2018(H), THE COURT ON 16-07-2019 DELIVERED THE FOLLOWING: W.P.(C) No. 19914/2018 & Conn. Cases -2- IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI TUESDAY, THE 16TH DAY OF JULY 2019 / 25TH ASHADHA, 1941 WP(C).No.16080 OF 2018 PETITIONER/S: GEORGE JOSEPH S/O. JOSEPH, NEDUMPARA HOUSE, THODUPUZHA P.O., THODUPUZHA, IDUKKI, NOW RESIDING AT NO.40, LIBRARY STREET, MURUNGAPAKKAM, PONDICHERRY, PUDUCHERRY - 605004. BY ADVS. SRI.G.HARIHARAN SRI.PRAVEEN.H. RESPONDENT/S: 1 THE JOINT REGIONAL TRANSPORT OFFICER, THODUPPUZHA THODUPPUZHA- 688554. 2 THE TRANSPORT COMMISSIONER TRANS TOWERS, VAZHUTHACAUD, THIRUVANANTHAPURAM - 695014. 3 STATE OF KERALA REPRESENTED BY THE PRINCIPAL SECRETARY, DEPARTMENT OF FINANCE, ROOM NO. 131, II FLOOR, NORTH BLOCK, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM - 695001. 4 THE REGIONAL TRANSPORT OFFICER PUDUCHERRY, PIN - 605001. W.P.(C) No. 19914/2018 & Conn. Cases -3- BY SR. ADV. N VENKITARAMAN ADV. AKHIL SURESH SPL.G.P. SRI.P.RAVINDRANATH SPL. G.P. SRI P.N. SANTHOSH KUMAR DR.THUSHARA JAMES, GP SMT.M.M. JASMIN GP THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 09-07-2019, ALONG WITH WP(C).16465/2018(G), WP(C).16898/2018(J), WP(C).19914/2018(L), WP(C).23079/2018(H), WP(C).24873/2018(H), THE COURT ON 16-07-2019 DELIVERED THE FOLLOWING: W.P.(C) No. 19914/2018 & Conn. Cases -4- IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI TUESDAY, THE 16TH DAY OF JULY 2019 / 25TH ASHADHA, 1941 WP(C).No.16465 OF 2018 PETITIONER/S: K.R.SURESH KUMAR PROPRIETOR, M/S. KALLADA TOURS & TRAVELS,AGED 51 YEARS, S/O. LATE RAMAKRISHNAN NO.31, FANSWA THOTTAM, PONDHICHERRY PUDUCHERRY-605005 BY ADVS. SRI.G.HARIHARAN SRI.PRAVEEN.H. RESPONDENT/S: 1 THE JOINT REGI0NONAL TRANSPORT OFFICER IRINJALAKKUDA- 680 121 2 THE TRANSPORT COMMISSIONER TRANS TOWERS, VAZHUTHACAUD,THIRUVANANTHAPURAM- 695 014 3 STATE OF KERALA REPRESENTED BY THE PRINCIPAL SECRETARY,DEPARTMENT OF FINANCE, ROOM NO.131,IIND FLOOR, NORTH BLOCK, GOVERNMENT SECRETARIATTHIRUVANANTHAPURAM- 695 001 4 THE REGIONAL TRANSPORT OFFICER PUDUCHERRY, PIN- 605001 W.P.(C) No. 19914/2018 & Conn. Cases -5- BY SR. ADV. N VENKITARAMAN ADV. AKHIL SURESH SPL.G.P. SRI.P.RAVINDRANATH SPL. G.P. SRI P.N. SANTHOSH KUMAR DR.THUSHARA JAMES, GP SMT.M.M. JASMIN GP THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 09-07-2019, ALONG WITH WP(C).16080/2018(H), WP(C).16898/2018(J), WP(C).19914/2018(L), WP(C).23079/2018(H), WP(C).24873/2018(H), THE COURT ON 16-07-2019 DELIVERED THE FOLLOWING: W.P.(C) No. 19914/2018 & Conn. Cases -6- IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI TUESDAY, THE 16TH DAY OF JULY 2019 / 25TH ASHADHA, 1941 WP(C).No.16898 OF 2018 PETITIONER/S: THE MANAGING DIRECTOR, TAYASH TRADE AND IMPEX PVT. LTD 33/A, IYYANARKOIL STREET, O.K. PALAYAM,MUNDALIARPET, PUDUCHERRY -4. BY ADV. SRI.K.V.GOPINATHAN NAIR RESPONDENT/S: 1 THE REGIONAL TRANSPORT OFFICER, ERNAKULAM 682 030. ADDL 2 THE REGIONAL TRANSPORT OFFICER, (REGISTERING AUTHORITY) PONDICHERRY IMPLEADED AS PER ORDER DATED 04.01.2019 IN I.A.1/18 BY SR. ADV. N VENKITARAMAN ADV. AKHIL SURESH SPL.G.P. SRI.P.RAVINDRANATH SPL. G.P. SRI P.N. SANTHOSH KUMAR DR.THUSHARA JAMES, GP SMT.M.M. JASMIN GP THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 09-07-2019, ALONG WITH WP(C).16080/2018(H), WP(C).16465/2018(G), WP(C).19914/2018(L), WP(C).23079/2018(H), WP(C).24873/2018(H), THE COURT ON 16-07-2019 DELIVERED THE FOLLOWING: W.P.(C) No. 19914/2018 & Conn. Cases -7- IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI TUESDAY, THE 16TH DAY OF JULY 2019 / 25TH ASHADHA, 1941 WP(C).No.23079 OF 2018 PETITIONER/S: SALAMULLAH.M.M AGED 49 YEARS,S/O.MOHAMMED, LOVADALE, CHANDRANANGAR, PALAKKAD. BY ADV. SRI.L.RAJESH NARAYAN RESPONDENT/S: 1 STATE OF KERALA REP. BY SECRETARY,TRANSPORT DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM-695 001. 2 TRANSPORT COMMISSIONER THIRUVANANTHAPURAM-695 001. 3 REGIONAL TRANSPORT OFFICER REGISTERING AUTHORITY O/O. THE REGIONAL TRANSPORT OFFICER,CIVIL STATION, PALAKKAD – 678 001. BY SR. ADV. N VENKITARAMAN ADV. AKHIL SURESH SPL.G.P. SRI.P.RAVINDRANATH SPL. G.P. SRI P.N. SANTHOSH KUMAR DR.THUSHARA JAMES, GP SMT.M.M. JASMIN GP THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 09-07-2019, ALONG WITH WP(C).16080/2018(H), WP(C).16465/2018(G), WP(C).16898/2018(J), WP(C).19914/2018(L), WP(C).24873/2018(H), THE COURT ON 16-07-2019 DELIVERED THE FOLLOWING: W.P.(C) No. 19914/2018 & Conn. Cases -8- IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI TUESDAY, THE 16TH DAY OF JULY 2019 / 25TH ASHADHA, 1941 WP(C).No.24873 OF 2018 PETITIONER/S: MOHAMMED FAYIZ K.M., AGED 22 YEARS S/O. MUHAMMED NASSER, K.M. MANZIL, MATTUKADE, KUZHALMANNAM, PALAKKAD - 678702. BY ADV. SRI.O.D.SIVADAS RESPONDENT/S: 1 THE TRANSPORT COMMISSIONER, TRANSPORT DEPARTMENT, TRANS TOWERS, VAZHUTHACAUD, THIRUVNANATHAPURAM - 695014. 2 THE REGIONAL TRANSPORT OFFICER, PALAKKAD-678001. 3 JOINT REGIONAL TRANSPORT OFFICER AND ADDITIONAL REGISTERING AUTHORITY, ALATHUR, PALAKKAD DISTRICT-680001. BY SR. ADV. N VENKITARAMAN ADV. AKHIL SURESH SPL.G.P. SRI.P.RAVINDRANATH SPL. G.P. SRI P.N. SANTHOSH KUMAR DR.THUSHARA JAMES, GP SMT.M.M. JASMIN GP W.P.(C) No. 19914/2018 & Conn. Cases -9- THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 09-07-2019, ALONG WITH WP(C).16080/2018(H), WP(C).16465/2018(G), WP(C).16898/2018(J), WP(C).19914/2018(L), WP(C).23079/2018(H), THE COURT ON 16-07-2019 DELIVERED THE FOLLOWING: W.P.(C) No. 19914/2018 & Conn. Cases -10-

J U D G M E N T [ WP(C).19914/2018, WP(C).16080/2018, WP(C).16465/2018, WP(C).16898/2018, WP(C).23079/2018, WP(C).24873/2018 ] Dated this the 16th day of July 2019 These writ petitions were heard along with W.P.(C) No.33231 of 2018 and connected cases. Vide judgment dated 16th July, 2019, W.P.(C) No.33231 of 2018 and connected cases were disposed of. The operative portion of the judgment reads thus:

“37. As a result of my above discussion I summarise my judgment on the issues noted above as follows: (a) Section 3(6) of Motor Vehicles Taxation Act, 1976 is within the competence of State legislature and Section 3(6) is not in any manner repugnant to Chapter IV of Motor Vehicles' Act, 1988 or ultra vires Act 1976. Section 3(6) therefore is valid and legal. (b) The registration of a non-transport vehicle and payment of registration fee under Act 1988 or payment of motor vehicle tax under a State legislature continues to be valid so long as the vehicle is kept and used in the State in which it is registered. These vehicles if enter State of Kerala and stay beyond the period stipulated by the State enactment, the vehicle is required to pay vehicle tax as per Section 3(6) read with Annexure III of Schedule of Act 1976. (c) The impugned orders calling upon the petitioners to register the subject vehicles in State of Kerala and pay life tax are set -11- aside as illegal, arbitrary and violative of principles of natural justice, the matters are restored to the file of respective Regional Transport Officer/ respondents for consideration and disposal by keeping in view the principles stated supra. (d) The writ petitions filed challenging show cause notices are given four weeks' time from the date of receipt of copy of this judgment to file objections against proposed tax levy and are entitled to show that, firstly, the vehicle is not kept for use in State of Kerala beyond thirty days and, alternatively, vehicle is not at all used or kept for use in State of Kerala. The objection raised against proposed action is examined in detail and orders as are warranted by the circumstances of the case are passed. Respondents keeping in view the scope, character and purpose of incidence of vehicle tax, consider the objections and pass detailed orders, in all the matters now restored to file as well as where time is granted for filing objections to show cause notice.” These writ petitions are also disposed of on the same lines. S.V.BHATTI JUDGE jjj -12- APPENDIX OF WP(C) 19914/2018 PETITIONER'S/S EXHIBITS: EXHIBIT P1:-OF THE CERTIFICATE OF REGISTRATION ISSUED BY THE COMMERCIAL TAXES DEPARTMENT, PUDUCHERRY IN THE NAME OF THE PETITIONER ON 12- 03-2015 EXHIBIT P2:-OF THE INVOICE DATED 19.03.2015 ISSUED BNY THE M/S. LAND MARK CARS PVT LTD., AHAMEDABAD IN THE NAME OF THE PETITIONER EXHIBIT P3:-OF THE TEMPORARY REGISTRATION CERTIFICATE DATED 19.03.2017 ISSUED BY THE RTO AHAMEDABAD ASSIGNING TEMPORARY REGISTRATION NO. GJW-01-15A-668 EXHIBIT P4:-OF THE CERTIFICATE OF REGISTRATION ISSUED BY THE 3RD RESPONDENT IN THE NAME OF THE PETITIONER FOR VEHICLE NO. PY-01-CH-0101 EXHIBIT P5:-OF THE RECEIPT FOR RS. 1,00,700/- ISSUED BY THE 3RD RESPONDENT ON 25-03-2015 BEING LIFE TAX AND ALSO THE OTHER FEES REQUIRED FOR THE REGISTRATION OF VEHICLE MENTIONED IN EXHIBIT P4 EXHIBIT P6:-OF THE LIVE AND LICENCE AGREEMENT EXECUTED BETWEEN THE P[ETITIONER AND THE OWNER OF PREMISES AT JAM NAGAR ON 11.03.2015 EXHIBIT P7:-OF THE LIST OF VEHICLES OF THE PETITIONER REGISTERED WITHIN THE JURI ICTION OF THE 1ST RESPONDENT. EXHIBIT P8:-OF THE NOTICE AND 29-05-2018 ISSUED BY THE 1ST RESPONDENT AND RECEIVED BY THE PETITIONER ON 07-06-2018 DEMANDING PAYMENT OF A SUM OF RS. 11,40,000/- -13- EXHIBIT P9:-OF THE OBJECTION DATED 09-06-2018 SENT BY THE PETITIONER ADDRESSED TO THE 1ST RESPONDENT. EXHIBIT P10:-OF THE NOTIFICATEION NO. GO(P) NO.11/2018 DATED 28-03-2018 ISSUED BY THE GOVERNMENT OF KERALA EXHIBIT P11:-OF THE ONE SUCH JUDGMENT MADE IN WPC NO. 9115/2018 DATED 16-03-2018. -14- APPENDIX OF WP(C) 16080/2018 PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE ORDER NO. R1/1040/2018/IT DATED 16/04/2018 PASSED BY THE 1ST RESPONDENT. EXHIBIT P2OF THE TAX INVOICE NO. VSIP- 80960 DATED 22.06.2011 ISSUED BY M/S.PLATINO CLASSIC AT PUDUCHERRY IN THE NAME OF THE PETITIONER. EXHIBIT P3OF THE REGISTRATION CERTIFICATE RELATING TO CAR BEARING REGISTRATION NO. PY- 01BK-9966. EXHIBIT P4OF THE NOTICE DATED 18.12.2017 ISSUED BY THE 1ST RESPONDENT ADDRESSED TO THE PETITIONER. EXHIBIT P5OF THE OBJECTION DATED 07.02.2018 SUBMITTED BY THE PETITIONER ADDRESSED TO THE 1ST RESPONDENT. EXHIBIT P6OF THE GST REGISTRATION CERTIFICATE 34ABIPJ6769LIZ2 VIDE CERTIFICATE DATED 18.01.2018 ISSUED BY THE GOVERNMENT OF INDIA IN THE NAME OF THE PETITIONER. EXHIBIT P7OF THE JUDGMENT MADE IN W.P.(C). NO. 5319/2018 DATED 05.03.2018. EXHIBIT P8OF THE CIRCULAR NO.13/14 DATED 17/09/2014 ISSUED BY THE 2ND RESPONDENT. RESPONDENT'S EXHIBITS EXHIBIT R1(A)OF THE POSTAL ENDORSEMENT EXHIBIT R1(B)OF THE POSTAL ENDORSEMENT -15- APPENDIX OF WP(C) 16465/2018 PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE TAX INVOICE DATED 9.6.2012 FOR RS 66,75,595/- FOR THE PURCHASE OF AUDI SEDAN MOTOR CAR ISSUED BY M/S.AUDI KOCHI EXHIBIT P2OF THE CERTIFICATE OF REGISTRATION OF CAR BEARING REGISTRATION NO PY-01-BS-2000 REGISTERED BY THE 4TH RESPONDENT EXHIBIT P3OF THE REGISTRATION CERTIFICATE OF CAR NO KL-45M-2000 EXHIBIT P4OF THE SHOW CAUSE NOTICE DATED 23.11.2017 ISSUED BY THE 1ST RESPONDENT ADDRESSED TO THE PETITIONER EXHIBIT P5OF THE OBJECTION DATED 4.12.2017 SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT EXHIBIT P6OF THE MEMO DATED 18.12.2017 SENT BY THE 1ST RESPONDENT ADDRESSED TO THE PETITIONER EXHIBIT P7OF THE REGISTRATION CERTIFICATE ISSUED BY THE LABOUR OFFICER (ENFORCEMENT), PUDUCHERRY RENEWED ON 21.4.2017 IN THE NAME OF THE PETITIONER EXHIBIT P8OF THE CIRCULAR NO.13/2014 DATED 17.9.2014 ISSUED BY THE 2ND RESPONDENT EXHIBIT P9OF THE REQUEST DATED 6.2.2018 SUBMITTED BY THE PETITIONER IN RESPONSE TO EXHIBIT P6 MEMO -16- APPENDIX OF WP(C) 16898/2018 PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE REGISTRATION CERTIFICATE ISSUED BY COMMERCIAL TAX DEPARTMENT, PONDICHERRY DATED 28.10.2017. EXHIBIT P2OF THE REGISTRATION CERTIFICATE REGISTERING GST REGISTRATION. EXHIBIT P3OF THE REGISTRATION PARTICULARS IN RESPECT OF VEHICLE DATED 7.1.2016 EXHIBIT P4OF THE NOTICE ISSUED TO THE PETITIONER. EXHIBIT P5OF THE EXPLANATION SUBMITTED BY THE PETITIONER. EXHIBIT P6OF THE NOTICE DATED 27.12.2017 EXHIBIT P7OF THE REPLY DATED 12.1.2018. EXHIBIT P8OF THE NOTICE ISSUED BY RESPONDENT SINGED ON 5.5.2018 RESPONDENT'S EXHIBITS EXHIBIT R1(A)OF THE NOTICE DATED 27.12.2017 EXHIBIT R1(B)OF THE REPORT OF THE FIELD OFFICER EXHIBIT R1(C)OF THE NOTICE DATED 05.05.2018 EXHIBIT R1(D)OF AGREEMENT DATED 28.07.2018 EXHIBIT R1(A)OF THE NATIONAL REGISTER -17- APPENDIX OF WP(C) 23079/2018 PETITIONER'S/S EXHIBITS: EXT.P1OF THE CERTIFICATE OF REGISTRATION. EXT.P2OF THE CERTIFICATE OF REGISTRATION WITH ENDORSEMENT OF TRANSFER DTD.20.3.2017. EXT.P3OF THE NOTICE. EXT.P4OF THE REPLY DTD.4.12.2017. EXT.P5OF THE DEMAND NOTICE DTD.1.1.2018. EXT.P6OF THE REPLY DTD.12.1.2018. EXT.P7OF THE DEMAND NOTICE DTD.25.5.2018. EXT.P8OF THE ORDER DTD.26.6.2018. EXT.P9OF THE ORDER NO.510/647/2018/P DTD.2.6.2018. -18- APPENDIX OF WP(C) 24873/2018 PETITIONER'S/S EXHIBITS: EXHIBIT P1 COPY OF THE INVOICE ISSUED BY M/S VST TITANIUM MOTORS LTD. CHENNAI WITH RESPECT TO THE PETITIONER VEHICLE EXHIBIT P2 COPY OF THE REGISTRATION CERTIFICATE OF THE VEHICLE NO.PY 05//B 3499 EXHIBIT P3 COPY OF THE NOTICE DATED 3.1.2018 ISSUED BY THE 3RD RESPONDENT

Reproduced from the public record of the Kerala High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.