POST MASTER GENERAL Vs. STATE OF KERALA

JUDGEMENT

(1.) Whether the vehicles owned, possessed and used by the Postal Department are liable to pay the tax leviable under Section 3 of the Kerala Motor Vehicles (Taxation) Act 1976, is the moot point in both these Writ Petitions.

(2.) For the purpose of proper adjudication, sequence of events or the factual controversy is not a matter to be looked into, as the contention is mainly based on the legal prepositions referring to Article 285 of the Constitution of India, whereby it has been specifically provided that the property of the Union shall, save in so far as the Parliament may by law otherwise provide, be exempt from all taxes imposed by a State or by any authority within a State.

(3.) Placing reliance on the constitutional mandate, the learned Counsel for the petitioner submits that, since there is total exemption from all taxes', the vehicles belonging to the Postal Department, being a property of the Union, are not liable to suffer any tax liability imposed by the State under Section 3 of the Kerala Motor Vehicles Taxation Act 1976, Reference is also made to the reciprocal provision as it appears under the Article 289 of the Constitution of India, whereby a similar exemption from the taxation by the Union is provided in respect of the property and income of the State as well. Viewed in such circumstances, the learned Counsel submits, that the course and proceedings pursued by the respondents imposing tax under the Act for the vehicles being used by the Postal Department is not correct or sustainable under any circumstance. The learned Counsel for the petitioner also placed reliance on the decision rendered by the High Court of Punjab and Hariyana reported in , to contend that me event of taxation will not be attracted to the case in hand.