R SURESH KUMAR Vs. COMMISSIONER PANCHAYAT UNION

JUDGEMENT

(1.) The present writ petition is filed by the Petitioner under Article 226 of the Constitution of India challenging the impugned order passed by third Respondent, the Regional Transport Authority, Namakkal in proceedings No. 91641/E4/2010 dated 01.11.2010 and to quash the same andfor a consequential direction to the third Respondent toaccept the tax @ 6% for two years on the auction value ofthe vehicle bearing Reg. No. TN 09Q 1120 at Rs. 38,500/- .

(2.) Learned Counsel appearing for the Petitioner submitted that the Petitioner has participated in a public auction held by the first Respondent-The Commissioner, Panchayat Union, Puduchatiram, Namakkal District on 19.8.2010 for purchasing the old jeep bearing Regn. No. TN09Q 1120. Having become the successful bidder, the Petitioner was declared as the "successful bidder" for a sum of Rs. 38,500/- along with 12.5% VAT and 4% additional tax. The Petitioner has also paid the total sum of Rs. 44,850/- to the first Respondent. After that the Petitioner as per the direction issued by the first Respondent had paid the insurance amount for the above said vehicle. After paying the insurance, he approached the second Respondent, Transport Commissioner, Chepauk for transfer of permit and mutation of name in all the records. Again the second Respondent directed the Petitioner to pay life tax which comes to Rs. 20,000/- . The grievance of the Petitioner at this juncture is that the vehicle was 12 years old at the time of his purchase from auction held on 19.8.2010. Since the Government has not paid the life tax to the vehicle, the second Respondent insisted the Petitioner by letter dated 26.10.2010 to pay life tax at the rate of 6% as per the purchase amount during 1998. Butthe Petitioner is prepared to pay life tax at the rate of 6% only at the rate of purchase made by him on 19.8.2010. Therefore, the Petitioner came to this Court by challenging the impugned order issued by the third Respondent-Regional Transport Authority, Namakkal demanding payment of life tax at the rate of 6% at the cost of the vehicle sold in the first sale.

(3.) In reply, the learned Government Advocate submitted that the Tamil Nadu Government Gazette-Extraordinary published on 24.5.2010, Part IV-Section 2 indicates how much will be the life tax taxable on the vehicle from the purchaser. In the Tamil Nadu Motor Vehicles Taxation Act, 1974, for the Third Schedule, the following Schedule is substituted.