EDWIN Vs. STATE OF KERALA

JUDGEMENT

(1.) These writ petitions concern challenge to Finance Bill, 2014 by which taxi vehicles are also imposed with an obligation to pay one time tax for fifteen years. The main contention urged by the petitioners is that there is a different rate for payment of tax as far as taxi vehicles are concerned. The taxi vehicle can be used as a taxi vehicle in terms of R.82(2) of the Central Motor Vehicles Rules only for a period of nine years. However, while registering the aforesaid vehicles to be used as taxi, petitioners are called upon to remit tax @15% for a period of fifteen years. This, according to the petitioners, is arbitrary and illegal taking into account the nature of use of the vehicle.

(2.) Counter - affidavit has been filed by the Government in WP (C) No. 13972/2014, inter alia supporting the stand taken in the matter. It is submitted that the State Legislature is competent to enact the law under Entry 57 of List II of the 7th Schedule by which tax can be levied on motor vehicles plying within the State. This position of law has been upheld by the Supreme Court in Travancore Tea Company Ltd. Vs. State of Kerala, 1980 KHC 146 and a judgment of this Court in Reena Vs. State of Kerala, 2015 KHC 181. it is therefore submitted that being a one time tax, all vehicles are liable to pay tax for 15 years.

(3.) Before proceeding further, it has to be considered whether the vehicles used for private use and vehicles used for taxi can be brought under the same classification. Apparently, the vehicles used as taxi can be utilized only for a period of nine years as per Central Motor Vehicles Rules whereas vehicles which are for own use can be used initially for a period of 15 years and thereafter it is possible for the said vehicles to get re - registration also. It is therefore apparent that the vehicles which are being purchased or used as taxies can have a separate classification with reference to the vehicles which are purchased for own use, and is apparent from the classification in Annexure 1 itself.