S.Jothinath vs. The Regonial Transport Officer

Held

The Court held that the "cost of the vehicle" for the purpose of computing life-time road tax under the Tamil Nadu Motor Vehicle Taxation Act, 1974, means the price paid by the purchaser at the time of purchase, which should be inclusive of CGST and GST. The Court referred to a previous order of a learned Judge of the same High Court in W.P.No.8985 of 2018, which held that the cost of the vehicle includes CGST and GST. Therefore, the Court found that the respondent had correctly collected the road tax from the petitioner and that the petitioner had not paid any excess amount. The writ petition was dismissed.

Facts

The petitioner purchased a vehicle with an ex-showroom price of Rs.13,97,972.97. Upon registration, the respondent insisted on payment of life-time road tax and cess calculated on a total cost of Rs.20,69,000/-, which included CGST, SGST, and cess. The petitioner contended that road tax should only be levied on the ex-showroom price. After remitting the demanded amount to obtain registration, the petitioner sought a refund of Rs.1,00,654/-, claiming it was an excess payment. The respondent opposed this claim, and the petitioner filed a writ petition seeking a mandamus for the refund.

Key Issues

1. Whether the "cost of the vehicle" for the purpose of computing life-time road tax under the Tamil Nadu Motor Vehicle Taxation Act, 1974, includes CGST, SGST, and cess, or is limited to the ex-showroom price? Petitioner's contention: The petitioner argued that road tax should be calculated only on the ex-showroom price, as per the rules, and not on the price that includes CGST, SGST, and cess. The petitioner was compelled to pay the higher amount to secure vehicle registration. Respondent's contention: The respondent insisted that the life-time road tax and cess must be paid on the total cost of the vehicle, which includes CGST, SGST, and cess. The respondent relied on the third schedule to the Tamil Nadu Motor Vehicle Taxation Act, 1974, which states that the rate of tax is computed on the total cost of the vehicle.