DEVIPRASAD S. Vs. STATE OF KERALA AND ORS.

JUDGEMENT

(1.) The petitioner is aggrieved with the demand for enhanced tax, as per an amendment, brought by way of an Ordinance, under the Kerala Motor Vehicles Taxation Act, 1976 on 13.11.2014. The petitioner admittedly purchased the vehicle on 29.10.2014 evidenced at Ext. P1 invoice. On 30.10.2014, the petitioner was issued with Ext. P2 temporary registration certificate. The petitioner was obliged to register the vehicle within a month from the date of temporary registration. The petitioner produced the vehicle for permanent registration before the authority under whose jurisdiction, the petitioner resides on 13.11.2014, upon which, the petitioner was directed to pay the tax as amended on the said date, which is challenged by the petitioner herein. The petitioner's contention is that the entire tax having been paid on 30.10.2014, there could be no further tax demanded on the basis of a subsequent amendment.

(2.) The learned Government Pleader relies on a Division Bench decision of this Court in Hilal v. State of Kerala, 2012 3 KerLT 438, wherein, it has been unequivocally held that, the taxation event occurs, on the permanent registration under Section 40 of the Motor Vehicle Act, 1988 (for brevity, 'the MV Act') and not when a temporary registration is granted under Section 43 of the MV Act. The learned Counsel for the petitioner however, would seek to contend that the Larger Bench decision Jomon M. Arackal v. Tahsildar, Muvattupuzha Taluk and Others,2015 1 KHC 1, though in a different context, would by the dictum laid down, substantially overrule the declaration of the Division Bench that the taxation event is on the permanent registration.

(3.) Hilal was a case, in identical circumstances, in which the tax was collected when the temporary registration was granted and on the permanent registration, the tax as enhanced by an amendment in the meanwhile, was demanded. Here too the permanent registration took place after allotment of a 'fancy number', to the vehicle, as applied for by the owner. The Division Bench referred to the charging section of the Kerala Motor Vehicles Taxation Act, section 3, to find that the levy of tax on new vehicles is at the time of the 'first registration' of the vehicle, which 'first registration' has to be understood as the permanent registration under Section 40 of the Motor Vehicles Act. The Larger Bench does not at all deal with the said issue. The only issue which was referred for consideration of the Larger Bench was as to whether a G-form has to be filed in cases, where the Police authorities had taken custody of the vehicle inter alia for non-payment of tax due.