GEORGE Vs. STATE OF KERALA

JUDGEMENT

(1.) PROCEEDINGS evidenced by Ext. P3 Notice issued to the petitioner, by the third respondent - Sales Tax Officer, in exercise of the powers under the Kerala Tax on Entry of Goods into Local Areas Act, 1994 (for short, Entry Tax Act) are in challenge. The petitioner has been called upon to pay entry tax in respect of his car, registered as PY-O1-J/9273. The said vehicle was purchased from a dealer of Pondicherry and registered thereon 26. 08. 1997. A proposal for imposition of penalty as well has been communicated by Ext. P2, by the Intelligence Officer. The petitioner, though has responded to the notices, nevertheless seeks to set aside the said proceedings on the plea that the proposal and demand is unwarranted and not authorised by law.

(2.) THE petitioner, so far as his contentions show, has his business at Angamali, and has office at Pondicherry, and the car is used for his business, in both places. THE law does not prohibit him to use the vehicle through out the territory of India, and since he had not registered the vehicle in the State of Kerala, within 15 months from the date of its registration in Pondicherry, the demand and levy in April, 1999 is misconceived. It is further submitted that "the vehicle was not normally kept or used in the State of Kerala continuously for more than 12 months" and there was no change of address also and therefore requirement for endorsing a change in registration or change of residence had never arisen. It is also pointed out that as per S. 5 of the Entry Tax Act, the second respondent - Intelligence Officer was not a notified authority. THE respondents have not disclosed the materials for pursuing the present steps, and it works against principles of fair play.

(3.) FOR facilitating easy reference, the relevant portion of the Section is extracted herein below: " 3. Levy of tax.- (1) Subject to the provisions of this Act, there shall be levied and collected a tax on the entry of any goods into any local area for consumption, use of sale therein. The tax shall be at such rate or rates as may be fixed by the Government, by notification on the purchase value of the goods but not exceeding the rates specified for the goods (in the respective Schedule) to the General Sales Tax Act : Provided that no tax shall be levied and collected in respect of any motor vehicle which was registered in any Union Territory or any other State under the provisions of the Motor Vehicles Act, 1988 (Central Act 59 of 1988), prior to a period of fifteen months or more from the date on which it is registered in the State" The petitioner's argument, in the first blush may appear to be attractive in view of the wordings of Section. The question is whether there is tax liability for persons who are similarly situated like the petitioner.