SUSHREE AUTOMOTIVES Vs. STATE OF ODISHA

JUDGEMENT

(1.) These appeals are directed against a judgment dtd. 18/5/2017 passed by the learned Single Judge in a batch of writ petitions rejecting the challenge made therein to the validity of a circular dtd. 29/3/2016 issued by the Transport Commissioner-cum-Chairman, State Transport Authority (STA), whereby all the Regional Transport Officer (RTOs) were directed to collect tax from the dealers/manufacturers of motor vehicles on the basis of total number of vehicles possessed and registered during the entire year by the dealer. The learned Single Judge also negatived the challenge to the consequential demand notices issued by the various RTOs.

(2.) The learned Single Judge in the impugned judgment, which was common to the batch of writ petitions, chose to consider W.P.(C) No.5648 of 2017 by the Odisha Automobiles Dealers Association (OADA) as the lead petition. It was noted by the learned Single Judge, as far as the said petition was concerned, that OADA was a trust, the members of which were engaged in a business of hypothecation, leasing or hire-purchase of motor vehicles. As far as the Petitioners in the remaining writ petitions before the learned Single Judge were concerned, they were themselves dealers in motor vehicles and engaged in the business of selling of motor vehicles. It is not in dispute that all of them answered the description of the expression "dealer' within the meaning of Sec. 2 (8) of the Motor Vehicles Act, 1988 (MV Act).

(3.) As far as the MV Act is concerned, it is an Act made by Parliament and it is therefore a "Central Act'. It has been enacted with reference to Entry-35 of List-III of the Schedule-VII of the Constitution which reads as under: