BHARATIYA VIDYA BHAVAN Vs. TRANSPORT COMMISSIONER

JUDGEMENT

(1.) In these writ petitions, the petitioners challenge a demand for tax alleged to have been evaded by availing the benefit of reduction of road tax applicable to the educational institutions. W.P.(C) Nos.15955 of 2012 and 15143 of 2014 are filed by the Kerala Transport Company, a company engaged in motor transport business. W.P.(C) No.15725 of 2012 is filed by the Bharatiya Vidya Bhavan, a Trust which runs educational institutions.

(2.) The Kerala Transport Company (hereinafter referred to as the 'KTC'), operate contract carriages as well as the stage carriage buses. However, these buses cannot be used beyond the period of 15 years. They have a huge transport network and have also engaged large number of employees under them. They transferred some of their buses to the Bharatiya Vidya Bhavan on condition that these buses will be operated and managed by the KTC themselves. The above transfer was effected without any sale consideration, which according to the KTC is a part of their social obligation as they also then may not able to use these vehicles as contract carriage or stage carriage due to its age. The Bharatiya Vidya Bhavan agreed to pay certain fixed amount per day to the KTC. In the year 2003, it was around Rs.1,400/- per day. The Bharatiya Vidya Bhavan used these buses for transportation of students on payment of transportation fee by the studens and in turn paid the agreed amount to the KTC. This system can be termed as Transfer and Management of Operation of Buses (for brevity, TMOB). Thus, the Bharatiya Vidya Bhavan is the registered owner as entered in the RC Book and operation and management of the buses will be done by the KTC.

(3.) Based on the particulars in the Registration Certificate, the Motor Vehicles Department levied reduced tax applicable to the educational institutions. The Department later initiated proceedings on the premise that transfer of RC Book is a clandestine deal to evade motor tax applicable to the contract carriage other than the motor vehicles used for educational institutions.