KERLA PEOPLES ARTS CLUB Vs. STATE OF KERALA

JUDGEMENT

(1.) Government in exercise of the powers conferred under Section 22 of the Kerala Motor Vehicles Taxation Act, 1976, reduced the rate of tax payable under the Act in respect of two Vehicles KRA 6589 and KL-4/1269 owned by the Kerala Peoples Arts Club, Kayamkulam, registered under the Societies Registration Act, subject to the condition that the Vehicles shall be used soley for the conveyance of artists of the drama troop in connection with the presentation of drama. Explanatory note to the said notification reads as follows:

(2.) The main contention raised by the counsel for the petitioner was that the Government have no jurisdiction to take away the concessional rate of tax granted by statutory notification issued under section 22 of the Kerala Motor Vehicles Taxation Act, 1976 through and executive order (Ext.P4 dated 20.4.1995). Counsel placed reliance on the decision of the apex court in K. M. Chikkaputta Swami v. State of A.P. (AIR 1985 S.C. 956). Interpreting identical provision in Andhra Pradesh Motor Vehicle Taxation Act, the Supreme Court held that exemption notification issued under the Act can be modified only by another statutory notification issued under the Act and not by an executively order.

(3.) Petitioner's contention on the face of it is attractive. Learned Government Pleader however made available a notification No.8408/95/PW&T dated 9th May 1995 rescinding the notification dated 30.4.1994 with effect from 1.4.1995. That notification was issued in exercise of Section 22 of the Act. Therefore, the decision cited by the learned counsel for the petitioner is not applicable to the facts of this case. The fact that statutory notification cannot be rescinded by an executive order is well settled. Since Government have already issued notification with effect from 1.4.1995 the benefit of the concessional rate of tax would be available to the petitioner only upto 31.3.1995. Petitioner is obliged to pay tax at the normal rate with effect from 1.4.1995. It is so ordered.