HILAL Vs. STATE OF KERALA

JUDGEMENT

(1.) The appellants purchased premium cars, one a BMW 320 and other a Toyota Fortuner on the verge of closure of the financial year 2011-12, but got the registration done for the vehicles on 02/04/2012 when the rate of motor vehicles tax had gone up. The dispute raised before the learned Single Judge was whether the tax revised from 01/04/2012 was rightly levied and collected from the appellants for the vehicles registered on 02/04/2012 or whether the tax payable by them was only the pre-revised tax applicable in the preceding financial year because the vehicles were purchased and temporarily registered on 26/03/2012. The learned Single Judge referred to the 2nd proviso to the charging Section 3(1) of the Kerala Motor Vehicles Taxation Act, 1976 (hereinafter referred to as the Taxation Act for short) and held that though the date of commencement of liability is the date of purchase of vehicle, the incident of tax falls on first registration of the vehicle, which is not the temporary registration, but the regular registration as contemplated under the Taxation Act and hence upheld levy of tax at the revised rate applicable as on the date of registration of the vehicles, against which these writ appeals are filed.

(2.) We have heard both the counsel appearing for the appellants in the two Writ Appeals and also learned Government Pleader appearing for the respondents.

(3.) The facts leading to the controversy are the following:-