BharatTaxGST

Sophia Kishore vs. State Of Kerala

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WP(C)/19527/2018HC KeralaGSTCNR KLHC01051114201816 July 2019Bench: HONOURABLE MR.JUSTICE S.V.BHATTI12 pages
AI SummaryRemanded

Facts

Petitioners, owners of non-transport vehicles registered outside Kerala, were issued notices and demand orders by Kerala RTOs to register their vehicles in Kerala and pay life tax, alleging they were kept and used in the state beyond the permissible period.

Held

The High Court held that Section 3(6) of the Motor Vehicles Taxation Act, 1976 is valid and competent. It set aside the impugned orders demanding registration in Kerala and payment of life tax, restoring the matters to the RTOs for fresh consideration based on whether the vehicles were kept or used in Kerala beyond thirty days.

Key Issues

The key legal issues were the constitutional validity of Section 3(6) of the Motor Vehicles Taxation Act, 1976, and whether vehicles registered outside Kerala were liable to pay life tax in Kerala if kept or used in the state beyond the stipulated period.

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.11407 OF 2018(A) PETITIONER/S: V.PARAMESHWARAN AGED 45 YEARS PEE YAR CEE MEDICALS, PLOT NO. 70871, BHARATHIAR STREET,JAYAMOORTHY RAJA NAGAR, MUDALIARPET, PUDUCHERRY, INDIA. 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 OFFICERTAXATION OFFICER KOZHIKODE - 673 001. 3 THE ASSISTANT REGISTERING AUTHORITY 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).19527/2018(M), WP(C).21110/2018(K), WP(C).25698/2018(J), THE COURT ON 16-07-2019 DELIVERED THE FOLLOWING: W.P.(C) No.11407/2018 & 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.19527 OF 2018 PETITIONER/S: SOPHIA KISHORE AGED 50 YEARS, W/O MUHAMMED KISHORE,ROCK HOUSE, RAMANATHAPURAM, 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).11407/2018(A), WP(C).21110/2018(K), WP(C).25698/2018(J), THE COURT ON 16-07-2019 DELIVERED THE FOLLOWING: W.P.(C) No.11407/2018 & Conn.Cases -3- 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.21110 OF 2018 PETITIONER/S: SALAMULLAH M.M. AGED 49 YEARS, S/O.MOHAMMED LOVEDALE, CHANDRANAGAR 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 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 09-07-2019, ALONG WITH WP(C).11407/2018(A), WP(C).19527/2018(M), WP(C).25698/2018(J), THE COURT ON 16-07-2019 DELIVERED THE FOLLOWING: W.P.(C) No.11407/2018 & 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.25698 OF 2018 PETITIONER/S: BIJU V. THOTTAM S/O. T.U. KUNJACHAN, AGED 47 YEARS, MANAGING PARTNER, THOTTATHIL FASHION JEWELLERY, MUNICIPAL SHOPPING, COMPLEX, ROOM NO.6, KACHERITHAZHAM, MUVATTUPUZHA RESIDING AT THOTTATHIL HOUSE, MARKET P.O., MUVATTUPUZHA - 686673. BY ADV. SRI.SAJEEV KUMAR K.GOPAL RESPONDENT/S: 1 TRANSPORT COMMISSIONER OFFICE OF THE TRANSPORT COMMISSIONER, TRANS TOWERS, VAZHUTHACAUD, THIRUVANANTHAPURAM - 695014. 2 THE DEPUTY TRANSPORT COMMISSIONER CENTRAL ZONE -2, KAKKANAD, ERNAKULAM - 682030. 3 THE REGIONAL TRANSPORT OFFICER MUVATTUPUZHA - 686661. 4 THE ASSISTANT REGISTERING AUTHORITY REGIONAL TRASNPORT OFFICE, 100 FEET ROAD, OPPOSITE BUS STOP, MUDALIYAR PET, PUDUCHEERY- 605004. (SOUGHT TO BE IMPLEADED) W.P.(C) No.11407/2018 & 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 R4 BY ADV. SAJEEV KUMAR K.GOPAL THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 09-07-2019, ALONG WITH WP(C).11407/2018(A), WP(C).19527/2018(M), WP(C).21110/2018(K), THE COURT ON 16-07-2019 DELIVERED THE FOLLOWING: W.P.(C) No.11407/2018 & Conn.Cases -6-

J U D G M E N T [ WP(C).11407/2018, WP(C).19527/2018, WP(C).21110/2018, WP(C).25698/2018 ] 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 -7- 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 -8- APPENDIX OF WP(C) 11407/2018 PETITIONER'S/S EXHIBITS: EXHIBIT P1 AOF THE CERTIFICATE OF REGISTRATION PF PY-01/CQ 6768. EXHIBIT P2 AOF THE NOTICE (UNDATED) ISSUED BY THE 2ND RESPONDENT IN DECEMBER, 2017. EXHIBIT P3OF THE GST-REG - 06 DATED 12/08/2017. EXHIBIT P4OF THE RENTAL AGREEMENT DATED 13/06/2017. EXHIBIT P5OF THE DEMAND NOTICE DATED 07/03/2018. EXHIBIT P6OF SRO NO: 873/75. -9- APPENDIX OF WP(C) 19527/2018 PETITIONER'S/S EXHIBITS: EXHIBITP1OF THE CERTIFICATE OF REGISTRATION EXHIBIT P2OF THE NOTICE DATED 30-11-17 EXHIBIT P3OF THE REPLY DATED 12-12-2-17 EXHIBITP4OF THE REPLY DATED 12-1-18 EXHIBIT P5OF THE DEMAND NOTICE DATED 25-5-18 EXHIBITP6OF THE REPRESENTATION DATED .6.18 -10- APPENDIX OF WP(C) 21110/2018 PETITIONER'S/S EXHIBITS: EXHIBIT P1 EXT. P1OF THE CERTIFICATE OF REGISTRATION EXHIBIT P2 EXT. P2OF THE CERTIFICATE OF REGISTRATION WITH ENDORSEMENT OF TRANSFER DATED 20.03.2017 EXHIBIT P3 EXT. P3OF THE NOTICE. EXHIBIT P4 EXT. P4OF THE REPLY DATED 4.12.2017 EXHIBIT P5 EXT. P5OF THE DEMAND NOTICE DATED 1.1.2018 EXHIBIT P6 EXT. P6OF THE REPLY DATED 12.1.2018 EXHIBIT P7 EXT. P7OF THE DEMAND NOTICE DATED 25.5.18. -11- APPENDIX OF WP(C) 25698/2018 PETITIONER'S/S EXHIBITS: EXHIBIT P1OF THE LEASE DEED DATED 04.07.2016. EXHIBIT P2OF THE CERTIFICATE OF REGISTRATION UNDER THE CST ACT VIDE NO.CST3457002367 DT. 14.07.2016. EXHIBIT P3OF THE REGISTRATION CERTIFICATE NO.19172 ISSUED BY THE ASSISTANT INSPECTOR OF LABOUR PUTHUSSERY DATED 08.07.2016. EXHIBIT P4OF THE RENEWED REGISTRATION CERTIFICATE ISSUED BY THE OFFICE OF THE LABOUR OFFICER (ENFORCEMENT) PUTHUSSERY, DATED 28.12.2017. EXHIBIT P5OF REGISTRATION UNDER THE VALUE ADDED TAX ACT DATED 14.7.2016. EXHIBIT P6OF REGISTRATION CERTIFICATE UNDER THE GST ACT. EXHIBIT P7OF THE TEMPORARY CERTIFICATE OF REGISTRATION OF THE VEHICLE OF THE REVISION PETITIONER, DT. 23.7. 16. EXHIBIT P8OF THE SALE CERTIFICATE, DATED 29.6. 16. EXHIBIT P9OF THE REGISTRATION CERTIFICATE. EXHIBIT P10OF NOTICE R1/7023/17EM DATED 08.11.2017. EXHIBIT P11OF THE REPLY SUBMITTED TO EXHIBIT P 10, DATED 23.11.2017. EXHIBIT P12OF THE DEMAND NOTICE VIDE NO.R1/752/2018/EM DATED 27.01.2018. -12- EXHIBIT P13OF ORDER NO.C-1193/2018/CZ-2 DATED 03.04.2018. EXHIBIT P14OF THE REVISION PETITION FILED BEFORE THE 1ST RESPONDENT UNDER SECTION 24 OF THE KERALA MOTOR VEHICLE TAXATION ACT. EXHIBIT P15OF THE ORDER DATED 21.05.2018 ISSUED BY THE 1ST 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.