Kalanad Mohammed Hameed vs. The Secretary

WP(C)/27140/2018HC KeralaGSTCNR KLHC01058727201816 July 2019Bench: HONOURABLE MR.JUSTICE S.V.BHATTI18 pages

AI SummaryRemanded

Facts

Petitioners, owners of non-transport vehicles registered in other states like Puducherry, were directed by Kerala authorities to re-register their vehicles in Kerala and pay life tax, alleging use beyond the stipulated period. They challenged these orders and show cause notices issued by the Regional Transport Officers.

Held

The Court set aside the impugned orders requiring petitioners to re-register their vehicles in Kerala and pay life tax, restoring these matters to the respective Regional Transport Officers for reconsideration. For cases involving show cause notices, petitioners were granted four weeks to file objections, demonstrating the vehicle was not kept for use in Kerala beyond thirty days or not used at all in the state.

Key Issues

The key legal issues concerned the constitutional validity of Section 3(6) of the Motor Vehicles Taxation Act, 1976, and the legality of requiring re-registration and payment of life tax in Kerala for non-transport vehicles registered in other states but used in Kerala.

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.22089 OF 2018(I) PETITIONER/S: P.M.SHERIFF AGED 32 YEARS NO. 42/B, MAIN ROAD, KIZHUR, PUDUCHERRY. BY ADV. SRI.P.DEEPAK RESPONDENT/S: 1 THE TRANSPORT COMMISSIONER OFFICE OF THE TRANSPORT COMMISSIONER,TRANS TOWER, VAZHUTHACAUD, THIRUVANANTHAPURAM 695 014 2 THE REGIONAL TRANSPORT OFFICER (TAXATION OFFICER) ERNAKULAM 682 030 3 THE ASSISTANT REGISTERING AUTHORITY PUDUCHERRY 605001. 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).20515/2018(L), WP(C).20931/2018(N), WP(C).20932/2018(N), WP(C).22936/2018(N), WP(C).27140/2018(N), THE COURT ON 16-07-2019 DELIVERED THE FOLLOWING: W.P.(C) No. 22089/2018 & 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.20515 OF 2018 PETITIONER/S: P.V.AKHIL MANAGING DIRECTOR, FAST LINE PROJECTS PVT,LTD., RESIDING AT "AMRITHA", AMBILAD, NIRMALAGIRI POST, MANGATTIDAM, KANNUR DISTRICT. BY ADVS. SRI.T.REMESH BABU SRI.C.K.SREEJITH RESPONDENT/S: 1 JOINT REGIONAL TRANSPORT OFFICER REGIONAL TRANSPORT OFFICE, KANNUR-670 002. 2 STATE OF KERALA REPRESENTED BY TRANSPORT COMMISSIONER, TRIVANDRUM-695 001. ADDL 3 THE REGIONAL TRANSPORT OFFICER, REGIONAL TRANSPORT OFFICE, PONDICHERY 605 001. IMPLEADED AS PER ORDER DATED 16.07.2019 IN IA 1/2018 W.P.(C) No. 22089/2018 & 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).20931/2018(N), WP(C).20932/2018(N), WP(C).22089/2018(I), WP(C).22936/2018(N), WP(C).27140/2018(N), THE COURT ON 16-07-2019 DELIVERED THE FOLLOWING: W.P.(C) No. 22089/2018 & 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.20931 OF 2018 PETITIONER/S: MUBASHIR CHEMBAN AGED 29 YEARS, S/O. YOUSUF, HAVING ADDRESS AT KERALA AS CHEMBAN HOUSE,CHERUVANNOOR, KOZHIKODE AND HAVING HIS ADDRESS AT PUDUCHERRY AS FIRST FLOOR, NO. 197/3, ECR MAIN ROAD, CHINNAKALAPET,PUDUCHERRY-605 014 BY ADVS. SRI.S.K.PREMJITH MENON SRI.BINU V V VEETTIL VALAPPIL RESPONDENT/S: 1 STATE OF KERALA REPRESENTED BY ITS CHIEF SECRETARY,GOVT. SECRETARIAT, SECRETARIAT, THIRUVANANTHAPURAM 695 001 2 TRANSPORT COMMISSIONER 2ND FLOOR,TRANS TOWERS, THAICAUD P.O, VAZHUTHA CAUD, TRIVANDRUM-695 014. 3 THE RTO KOZHIKODE REGION,KOZHIKODE. OP RAMAN RD, ERANHIPPALAM, KOZHIKODE, KERALA 673 020 4 ASSISTANT MOTOR VEHICLES INSPECTOR REGIONAL TRANSPORT OFFICE, KOZHIKOD, KERALA 673 020. W.P.(C) No. 22089/2018 & Conn.Cases -5- ADDL 5 REGIONAL TRANSPORT AUTHORITY, OULGARET, UNION TERRITORY OF PUDUCHERRY PIN 605 010. IMPLEADED AS PER ORDER DATED 16.7.2019 IN IA 1/2018 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).20515/2018(L), WP(C).20932/2018(N), WP(C).22089/2018(I), WP(C).22936/2018(N), WP(C).27140/2018(N), THE COURT ON 16-07-2019 DELIVERED THE FOLLOWING: W.P.(C) No. 22089/2018 & 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.20932 OF 2018 PETITIONER/S: SATHIAN C.K. S/O. KUNJAN, GOKUL HOUSE, KADATHY, MARKET P.O,MUVATTUPUZHA. BY ADV. SRI.K.V.GOPINATHAN NAIR RESPONDENT/S: 1 THE REGIONAL TRANSPORT OFFICER MINI CIVIL STATION, MUVATTUPUAHA -686661. 2 THE TRANSPORT COMMISSIONER TRANS TOWER, VAZHUTHAKKAD, THIRUVANANTHAPURAM -695006. ADDL 3 THE REGIONAL TRANSPORT OFFICER (REGISTERING AUTHORITY) PONDICHERRY 605001 IMPLEADED AS PER ORDER DATED 16.7.2019 IN IA 1/2018 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. 22089/2018 & Conn.Cases -7- THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 09-07-2019, ALONG WITH WP(C).20515/2018(L), WP(C).20931/2018(N), WP(C).22089/2018(I), WP(C).22936/2018(N), WP(C).27140/2018(N), THE COURT ON 16-07-2019 DELIVERED THE FOLLOWING: W.P.(C) No. 22089/2018 & 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.22936 OF 2018 PETITIONER/S: ZEENATH NAZAR AGED 53 YEARS, W/O.ABDUL NAZAR, 22/40,VILLA RETREAT, NOYCE ROAD, KODAIKANAL,DINDUGAL, TAMIL NADU-624 101. BY ADV. SRI.PEEYUS A.KOTTAM RESPONDENT/S: 1 THE REGIONAL TRANSPORT OFFICER ERNAKULAM, PIN-682030. 2 THE TRANSPORT COMMISSIONER TRANS TOWER, VAZHUTHAKKAD,THIRUVANANTHAPURAM,, PIN- 695 001. 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).20515/2018(L), WP(C).20931/2018(N), WP(C).20932/2018(N), WP(C).22089/2018(I), WP(C).27140/2018(N), THE COURT ON 16-07-2019 DELIVERED THE FOLLOWING: W.P.(C) No. 22089/2018 & Conn.Cases -9- 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.27140 OF 2018 PETITIONER/S: KALANAD MOHAMMED HAMEED S/O. MOHAMMED, AGED 54 YEARS, HOUSE NO. 14/358, KOMPANAPARA HOUSE, KALANAD P.O, KASARAGOD TALUK, KASARAGOD DISTRICT - 671 317, REPRESENTED BY HIS POWER OF ATTORNEY HOLDER SRI. BANAS, AGED 43 YEARS, S/O, ABUBACKER, ARAYANKALAYIL HOUSE, PEZHAKAPPILLY P.O, MUVATTUPUZHA, ERNAKULAM DISTRICT. BY ADVS. SRI.PAUL K.VARGHESE SMT.A.A.GEETHA RESPONDENT/S: 1 THE SECRETARY TRANSPORT DEPARTMENT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM - 695 001. 2 THE REGIONAL TRANSPORT OFFICER KASARAGOD, KASARAGOD, DISTRICT - 671 123. 3 THE ASSISTANT REGISTERING AUTHORITY PONDICHERRY - 605 004. ADDL 4 THE REGISTERING AUTHORITY, 100 FEET ROAD, MUDALIARPET, PONDICHERY, MAHI 673 310 IMPLEADED AS PER ORDER DATED 16.7.2019 IN IA 1/2018 W.P.(C) No. 22089/2018 & Conn.Cases -10- 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).20515/2018(L), WP(C).20931/2018(N), WP(C).20932/2018(N), WP(C).22089/2018(I), WP(C).22936/2018(N), THE COURT ON 16-07-2019 DELIVERED THE FOLLOWING: W.P.(C) No. 22089/2018 & Conn.Cases -11-

J U D G M E N T [ WP(C).22089/2018, WP(C).20515/2018, WP(C).20931/2018, WP(C).20932/2018, WP(C).22936/2018, WP(C).27140/2018 ] 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 -12- 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 -13- APPENDIX OF WP(C) 22089/2018 PETITIONER'S/S EXHIBITS: EXHIBIT P1 AOF THE CERTIFICATE OF REGISTRATION OF PY-01/AV 4102 EXHIBIT P2 AOF THE CHECK REPROT DATED 11-04-2018 RESPONDENT'S EXHIBITS EXHIBIT R2(A)OF THE AFFIDAVIT FILED BY SRI.SIYAM HASSAN BEFORE THE RTO (ENFORCEMENT)

-14- APPENDIX OF WP(C) 20515/2018 PETITIONER'S/S EXHIBITS: EXHIBIT P1 THEOF THE DEMAND NOTICE DATED 03-03- 2018. EXHIBIT P2 THEOF THE RENT DEED DATED 19-08-2017 EXECUTED BY PETITIONER AND UMESH. EXHIBIT P3 THEOF THE GST REGISTRATION CERTIFICATE DATED 31-08-2017. EXHIBIT P4 THEOF THE REGISTRATION CERTIFICATE EXHIBIT P5 THEOF THE TAX DISC PAID FROM 03-10- 2017 TO 02-10-2032. EXHIBIT P6 THEOF THE FEE RECEIPT FOR TEMPORARY PERMIT ISSUED BY REGIONAL TRANSPORT OFFICE, KANNUR DISTRICT 01-11-2017. EXHIBIT P7 THEOF THE APPLICATION FOR ENLISTMENT AS CONTRACTOR IN PUDUCHERRY DATED 22-12-2017. EXHIBIT P8 THEOF THE LETTER DATED 11-03-2018 ISSUED TO THE 1ST RESPONDENT. EXHIBIT P9 THEOF THE NOTICE ISSUED TO THE PETITIONER BY THE 1ST RESPONDENT DATED 25-04- 2018. EXHIBIT P10 THEOF THE JUDGMENT IN WP(C) NO.8758/2018 ON THE FILE OF HON'BLE HIGH COURT OF KERALA, ERNAKULAM DATED 26-03-2018. -15- APPENDIX OF WP(C) 20931/2018 PETITIONER'S/S EXHIBITS: EXHIBIT P1OF CERTIFICATE OF REGISTRATION IN RESPECT OF VEHICLE NO. PY-01-BP-3369 EXHIBIT P2 TRUE PHOTOCOPY OF GST REGISTRATION EXHIBIT P3 TRUE PHOTOCOPY OF THE NOTICE DATED 02-06-2018 ISSUED BY THE 3RD RESPONDENT EXHIBIT P4 TRUE PHOTOCOPY OF THE CIRCULAR DATED 1-03-2018 ISSUED BY THE 2ND RESPONDENT EXHIBIT P4(A) TRANSLATION OF EXHIBIT P-4 -16- APPENDIX OF WP(C) 20932/2018 PETITIONER'S/S EXHIBITS: EXHIBIT P1FO THE REGISTRATION CERTIFICATE IN RESPECT OF THE VEHICLE PY-01/BS 3303. EXHIBIT P2OF THE NOTICE ISSUED BY THE 1ST RESPONDENT DATED 13/12/2017. EXHIBIT P3OF THE REPLY SUBMITTED BY THE PETITIONER DATED 28/12/2017. EXHIBIT P4OF THE INTERIM ORDER OF THIS HON'BLE COURT IN WPC NO.20180/2018 DATED 19/6/2018. -17- APPENDIX OF WP(C) 22936/2018 PETITIONER'S/S EXHIBITS: EXHIBIT P1 :OF PETITIONER'S ADHAR CARD IN THE TAMIL NADU ADDRESS. EXHIBIT P2 :OF PETITIONER'S PASSPORT IN THE TAMIL NADU ADDRESS. EXHIBIT P3 :OF PETITIONERS DRIVING LICENSE IN THE TAMIL NADU ADDRESS. EXHIBIT P4 :OF THE REGISTRATION CERTIFICATE OF THE VEHICEL BEARING NO.PY01CL9525 EXHIBIT P5 :OF THE NOTICE DATED 23-5-2018 ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER. EXHIBIT P5(A) : TRUE ENGLISH TRANSLATION OF EXT P5. EXHIBIT P6 :OF THE REPLY SUBMITTED BY THE PETITIONER DATED 4-7-2018. RESPONDENT'S/S EXHIBITS: EXHIBIT R1(A)OF THE NOTICE DATED 27-12-2018 WITH POSTAL REMARKS. EXHIBIT R1(B)OF THE REPORT OF THE MOTOR VEHICLES INSPECTOR -18- APPENDIX OF WP(C) 27140/2018 PETITIONER'S/S EXHIBITS: EXHIBIT P1 AOF THE PARTNERSHIP DEED DATED 11/01/2018. EXHIBIT P2 AOF THE SALE DEED NO. 535/2018 OF DISTRICT REGISTER, PONDICHERRY DATED 10/01/2018. EXHIBIT P3 AOF THE REGISTRATION ISSUED TO THE PETITIONER'S FIRM DATED 02/04/2018. EXHIBIT P4 AOF THE NOTICE ISSUED BY THE 2ND RESPONDENT DATED 02/03/2018 AND TRANSLATION. EXHIBIT P5 AOF DEMAND NOTICE ISSUED TO THE PETITIONER DATED 12/06/2018.

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.