George K M vs. The State Of Kerala

WP(C)/21934/2022HC KeralaGSTCNR KLHC01045320202218 July 2022Bench: HONOURABLE MR.JUSTICE N.NAGARESH7 pages

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Facts

The petitioner, George K M, is the registered owner of a stage carriage vehicle. The vehicle's permit was valid until July 22, 2021, and its renewal is pending. The petitioner paid vehicle tax until the quarter ending September 30, 2019. The vehicle was not operated thereafter, and tax has not been paid for the period from October 1, 2019, to June 30, 2022. The petitioner owes ₹2,05,470/- in arrears. Due to severe financial difficulties caused by the Covid-19 pandemic, the petitioner seeks to pay these arrears in instalments. The petitioner relies on a previous High Court judgment (WP(C) No.18569/2021) that allowed similar instalment payments. The respondents are the State of Kerala and taxation officers.

Held

The Court held that while the Motor Vehicles Act and Rules do not explicitly provide for payment of tax in instalments, it is inclined to follow its own previous judgments, including Ext.P3, which granted instalment facilities. The Court noted that a significant portion of the arrears period falls within the Covid-19 pandemic, during which stage carriage vehicles could not be operated profitably, leading to the petitioner's financial difficulties. The Court distinguished the Madras High Court judgment cited by the Revenue, noting it was delivered before the Covid-19 pandemic. Therefore, the Court found it appropriate to grant the instalment facility, considering the exceptional circumstances of the pandemic. The Court directed the 2nd respondent to accept the Motor Vehicles Tax arrears from October 1, 2019, to June 30, 2022, in six equal monthly instalments, with the first instalment due by August 20, 2022. The benefit of this judgment would be withdrawn if any instalment is defaulted.

Key Issues

1. Whether the Court can grant a direction to permit the payment of Motor Vehicle Tax arrears in instalments, despite the absence of a specific provision in the Motor Vehicles Act or Rules allowing for such a facility, considering the financial hardship faced by the petitioner due to the Covid-19 pandemic? The petitioner argued that due to severe financial difficulties caused by the Covid-19 pandemic, they were unable to clear the tax arrears and sought an instalment facility, relying on Ext.P3 judgment of this Court which permitted similar relief. The petitioner contended that this Court has previously granted such relief in numerous judgments, considering the pandemic situation and the plight of stage carriage permit holders. The respondents (Revenue) argued that neither the Motor Vehicles Act nor the Rules permit payment of tax in instalments, and therefore, the petitioner does not have a legal right to such relief. They cited a Division Bench judgment of the Madras High Court in Commissioner of Commercial Taxes, Chepauk, Chennai and others v. Empee Distilleries Ltd. and another, which held that when a statute does not provide for instalment payments, a citizen has no right to seek it, and no mandamus can be issued. They also contended that taxation statutes are economic legislations that must be strictly construed and implemented.

Sections Cited

Not specified

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Heard together (2 matters)

WP(C) NO. 21934 OF 2022

WP(C) No.18569/2021

Read from the judgment's own cause title. This page is filed under one of them.

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE N.NAGARESH MONDAY, THE 18TH DAY OF JULY 2022 / 27TH ASHADHA, 1944 WP(C) NO. 21934 OF 2022 PETITIONER: GEORGE K M AGED 52 YEARS S/O. MATHEW, KANDATHILPARAMBIL, PERUVA, KARIKODE P.O., ANAKUZHY CACAL ROAD, VAIKOM, KOTTAYAM, PIN – 686001 BY ADV M.JITHESH MENON RESPONDENTS: 1 THE STATE OF KERALA REPRESENTED BY SECRETARY TO GOVERNMENT, TAXATION DEPARTMENT, GOVERNMENT SECRETARIAT, TRIVANDRUM, PIN - 695001 2 THE REGIONAL TRANSPORT OFFICER/TAXATION OFFICER REGIONAL TRANSPORT OFFICE, ERNAKULAM, CIVIL STATION, KAKKANAD, KOCHI, PIN - 682030 3 THE JOINT REGIONAL TRANSPORT OFFICER/TAXATION OFFICER SUB REGIONAL TRANSPORT OFFICE, VAIKOM, PIN - 686141 SMT.RESMITHA R CHANDRAN GP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.07.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 21934 OF 2022 2 JUDGMENT Dated this the 18th day of July, 2022 The petitioner is the registered owner of a stage carriage vehicle bearing registration No.KL-57E-459, which was covered by a Stage Carriage Permit till 22.07.2021. The renewal of the Stage Carriage Permit is pending. 2. The petitioner would state that the tax in respect of the vehicle was paid till the quarter ending 30.09.2019. Thereafter, the vehicle was not operated. Tax has not been paid for the period from 01.10.2019 to 30.06.2022. 3. The petitioner submits that the petitioner has to pay an amount of `2,05,470/- towards tax for the period from 01.10.2019 to 30.06.2022. On account of Covid-19 pandemic, the petitioner was facing severe financial difficulties and it is for the said reason that arrears of tax could not be cleared. The WP(C) NO. 21934 OF 2022 3 petitioner states that if the petitioner is given some time to pay the arrears in instalments, the entire arrears can be cleared. 4. Counsel for the petitioner relied on Ext.P3 judgment of this Court in WP(C) No.18569/2021, where this Court permitted the owner of a permit holder to clear the arrears in six Equal Monthly Instalments. 5. Government Pleader entered appearance and resisted the writ petition. The Government Pleader pointed out that this Court used to give instalment facilities to pay the taxes during the Covid-19 period. Neither the Motor Vehicles Act nor the Rules made thereunder or any Government instructions permit the vehicle owners to pay tax in instalments. When the petitioner does not have a legal right to pay tax in instalments, this Court cannot invoke in the writ jurisdiction to grant such relief. 6. The Government Pleader relied on the Division Bench judgment of the Hon'ble Madras High Court in WP(C) NO. 21934 OF 2022 4 Commissioner of Commercial Taxes, Chepauk, Chennai and others v. Empee Distilleries Ltd. and another [(2018) 52 GSTR 131 (Mad)], wherein it was held that when statute does not provide payment of tax in instalments, a citizen has no right to seek for payment of tax in instalments and no mandamus can be issued. The Hon'ble Madras High Court has also held in the said judgment that the taxation statutes being economic legislations, its provisions will have to be strictly construed and implemented. 7. I have heard the learned counsel for the petitioner and the learned Government Pleader representing the respondents. 8. The petitioner is the owner of a Stage Carriage Permit. The petitioner has been paying the tax regularly. However, the petitioner did not pay the Motor Vehicle Tax for the period from 01.10.2019 to 30.06.2022. The petitioner would urge that he was put to financial difficulties due to Covid-19 WP(C) NO. 21934 OF 2022 5 pandemic and the stage carriage could not be operated profitably and that is the reason for non-payment of tax. It is in such circumstances that the petitioner is seeking instalment facility to clear the amount. 9. I have considered the Division Bench judgment of the Hon'ble High Court of Madras in Commissioner of Commercial Taxes (supra). Going through the judgment, I find that the said judgment was delivered in the year 2018 before the advent of Covid-19 pandemic. This Court in Ext.P3 judgment and a number of other judgments have granted similar relief to the petitioners, taking into consideration the pandemic situation that prevailed and the plight of State Carriage Permit holders, who could not ply the vehicles due to the pandemic situation. In this case, a major part of the period during which the tax fell into arrears falls within the pandemic period. In view of above, this Court is inclined to follow Ext.P3

judgment.

WP(C) NO. 21934 OF 2022 6

10.

Accordingly, there will be a direction to the 2nd respondent to accept the Motor Vehicles Tax arrears from 01.10.2019 to 30.06.2022 relating to the vehicle bearing registration No.KL-57E-459 in six consecutive Equal Monthly Instalments, the first of which shall be paid by the petitioner on or before 20.08.2022. Needless to say, in the event of default of any of the instalments, the benefits granted under this judgment shall not be available to the petitioner. The writ petition is disposed of as above. N.NAGARESH JUDGE spk

WP(C) NO. 21934 OF 2022 7 APPENDIX OF WP(C) 21934/2022 PETITIONER EXHIBITS Exhibit P1OF THE STAGE CARRIAGE PERMIT ISSUED TO THE PETITIONER IN RESPECT OF STAGE CARRIAGE KL-57/E.459, VALID TILL 22-7-2021 DATED 11.3.2019 Exhibit P2OF THE REQUEST DATED 20.06.2022 Exhibit P3OF THE JUDGMENT IN W.P. (C).NO.18569/2021 DATED 10.09.2021 RESPONDENT'S/S EXHIBITS : NIL

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.