KHIVRAJ MOTORS (P) LTD. Vs. THE SECRETARY (HOME), TRANSPORT DEPARTMENT, STATE GOVERNMENT OF TAMIL NADU AND ORS.

JUDGEMENT

(1.) The present Writ Petition has been filed under Article 226 of the Constitution of India seeking a Writ of Mandamus directing the Transport Commissioner, Chennai/second respondent herein and his Subordinates to register the petitioner's CIAZ -ZDI and CIAZ -ZXI Vehicles despatched by the manufacturer to the petitioner show rooms at Mount Road, Adyar and Perungui (OMR) during January and February 2015 by accepting 10% tax at the time of its registration with reference to the petitioner's representation dated 16.5.2015.

(2.) Mr. K. Azhagirisamy, learned Senior Counsel appearing for the petitioner would submit that the petitioner company is one amongst the authorized dealers for sale and service of the vehicles manufactured by Maruthi Suzuki (Maruthi Udyog Limited) and it is having three show rooms for sales and service at Mount Road, Adyar and Perungudi (OMR). While so, one amongst the vehicles manufactured by the manufacturer is a Sedan Car called as CIAZ which comes under two variants i.e., (1) CIAZ -ZDI and (2) CIAZ -AT -ZXI. During January and February, 2015, the petitioner received certain consignments of CIAZ -ZDI and CIAZ -AT -ZXI from the manufacturer.

(3.) Adding further, the learned Senior Counsel appearing for the petitioner would submit that, in view of the revision of certain taxes and benefits announced in the budget of the Union Government in February, 2015 and also to meet the competitive business requirements, the manufacturer had revised and reduced the price for both CIAZ -ZDI and CIAZ -AT -ZXI Vehicles for Tamil Nadu and Puducherry to Rs. 9,98,000/ - on 02.03.2015. However, prior to the revision and reduction of the cost of the vehicle, the Ex -Factory Price for CIAZ -ZDI Vehicle was Rs. 8,22,421/ - and when it reached the dealer's show room, it was Rs. 8,59,542/ - (including CST, Tool Kit and Jack assembly, Transport amount and other charges and taxes) and the Ex -Show Room Price was Rs. 10,29,816/ - (including dealer's margin, local VAT and tool kits etc.,). Similarly, for CIAZ -ZXI, the cost of the Ex -Factory Price was Rs. 8,12,385/ - and when it reached dealer's show room, it was Rs. 8,49,407/ - and the show room price was Rs. 10,09,211/ -. After the revision and reduction of the cost of the vehicle, the Ex -Factory Price for CIAZ -ZDI Vehicle is Rs. 8,08,756/ - and when it reached dealer's show room, it is Rs. 8,39,615/ - and the Ex -Show Room price is Rs. 9,98,000/ -. Similarly, the Ex -Factory Price for CIAZ -ZXI is Rs. 8,08,756/ - and when it reached dealer's show room, it is Rs. 8,39,615/ - and the Ex -Show Room Price is Rs. 9,98,000/ -. It is a well known fact that the buyer is bound to pay a life time tax at the time of the registration of the vehicle as per Sec. 4(1 -A) of the Tamil Nadu Motor Vehicles Taxation Act, 1974 in terms of the rates specified in Part I of the Third Schedule, which prescribes the rate of tax as 10% where the total cost of the vehicle does not exceed Rs. 10,00,000/ - and 15% where the total cost of the vehicle exceeds Rs. 10,00,000/ -. Therefore, the respondent cannot demand more than 10% tax, he pleaded.