GOPINATH RAY Vs. THE UNDER SECRETARY-CUM- TAXING AUTHORITY, PASSENGERS TAX, STATE TRANSPORT AUTHORITY AND ANR.

JUDGEMENT

(1.) PETITIONER is owner of a contract carriage vehicle bearing registration No. ORU 2756. Contract carriage vehicles were made liable to passengers tax in view of the amendments brought about to the Orissa Motor Vehicles (Taxation on Passengers) Act, 1972 (hereinafter referred to as the "Act"). Petitioner challenged the vires of the amending statute in a writ application (O.J.C. 763 of 1972) and ultimately lost before this Court. Petitioner alleges that during the pendency of the writ application, he submitted a declaration to the Taxing Authority of Puri under Section 9 of the Bihar and Orissa Motor Vehicles Taxation Act that the vehicle was off -road from 1 -7 -1972 up to 3rd of June, 1973. Opposite - Party No. 1 being the prescribed authority under the Act raised tax demand at the rate of Rs. 769/ - per month and required the Petitioner to pay the same. Petitioner alleges to have informed the Opposite Party No. 1 that he had already withdrawn the vehicle from plying during the relevant period on intimation to the Taxing Officer of Puri and therefore, in respect of the period for which the declaration of of road was valid, no assessment be made and the demand be withdrawn. In the meantime the contract carriage permit issued for the vehicle having expired, Petitioner applied for renewal on 5 -2 -1975 as provided under Section 58(2) of the Motor Vehicles Act. Petitioner alleges that renewal was not granted on the ground that Petitioner was a defaulter in the matter of payment of tax. Petitioner made an application for review but the same was rejected. In the writ application, Petitioner has asked for quashing of the demand and a direction to the opposite parties to grant renewal of the permit.

(2.) OPPOSITE party No. 1 filed a counter affidavit taking the stand that the off -road declaration furnished to the Taxing Authority did not absolve the Petitioner as owner of a taxable vehicle under the Act from filing returns as provided under the scheme of the Act. Full opportunities had been given to the Petitioner and he defaulted and while taxation at the full rate could be demanded, the demand has been raised at a concessional rate as if there had been a composition. Petitioner having failed to satisfy the legitimate demand raised under the statute, it was open to the permit -granting authority not to consider the claim of renewal until Petitioner paid up the arrears of tax.

(3.) PETITIONER no more challenges that the vehicle owned by him is a taxable vehicle within the meaning of Section 2(h) of the Act. Section 3 is the charging section. Section 6 obligates every owner of a taxable vehicle to make a return in the manner prescribed and Section 7 deals with demand of tax. The procedure of assessment is covered by Section 8. Provisions for appeal and revision as also review have been made under the Act. There is no dispute before us that in respect of Petitioner's vehicle, Opposite Party No. 1 was the prescribed authority. That is so in view of Rule 2(g) of the Rules made under the Act. There is no provision in the statute exempting a holder of a permit in respect of a taxable vehicle to cease to file a return in due compliance with the statutory mandate once a declaration off -road of the vehicle is furnished to the Taxing Authority. On the other hand, in view of the mandatory provision in the statute, the return had to be filed at periodic intervals as provided. The authorities under the Motor Vehicles Taxation Act and the present Act being different and the statute having prescribed an obligation for making of a return, declaration of off -road and communication thereof to the Taxing Authority could not exempt the holder of a taxable vehicle under this Act in the matter of, making of returns provided by statute. Petitioner was liable, therefore, to make the returns on the basis whereof assessment had to be made. There is no force in Mr. Mohanty's contention for the Petitioner that in regard to a vehicle declared to be off the road, no liability attached under the Act to make returns.