2013 (2) TMI 488 - HC - VAT and Sales Tax

Section 3(1) of the Tamil Nadu Tax on Entry of Motor Vehicles into Local Area Act, 1990 invoked to ask for further details including family details to verify whether the vehicle was used for the period of fifteen months as specified under the Act - Held that - All that is required under the Act is proof of the registration of the vehicle and its use. Since the registration certificate itself gives the address proof, it is not clear as to why the authority asked for further documents which are not required under any provision of law. It is not the case of the respondent that the address shown in the registration certificate is bogus or that it is a fraudulent address. Thus it is totally irrelevant and there is no scope under section 3(1) of the Tamil Nadu Tax on Entry of Motor Vehicles into Local Area Act, 1990 to make such an enquiry on the family status of the petitioner In such view of the matter the respective petitioner can be directed to submit the original registration certificate of the vehicles and establish their case before the authority.

Summary

Issues:
1. Challenge to the authority's order under the Tamil Nadu Tax on Entry of Motor Vehicles into Local Area Act, 1990 regarding vehicle registrations.
2. Jurisdiction of the authority to request additional details from petitioners for tax exemption.
3. Compliance with Section 3(1) of the Tamil Nadu Tax on Entry of Motor Vehicles into Local Area Act, 1990.

Analysis:
1. The petitioners challenged the authority's orders regarding the assessment under the Tamil Nadu Tax on Entry of Motor Vehicles into Local Area Act, 1990 for two vehicles registered under National Permit. The petitioners sought to quash the orders as illegal and without authority of laws.

2. The petitioners contended that the address in the Registration Certificate is sufficient proof of address, and the authority exceeded its jurisdiction by requesting additional personal details to verify vehicle usage for the specified period under Section 3(1) of the Act. The authority's request for family details was deemed irrelevant and beyond the scope of the Act.

3. Section 3(1) of the Act specifies the levy of tax on motor vehicles entering local areas, based on registration and purchase value. The Act allows for exemptions if the vehicle is registered in another state and the owner applies for a new registration mark after a certain period. The court found the authority's actions contrary to the Act, as the address in the registration certificate serves as sufficient proof, and no further personal details are required.

4. The court held that the authority's demands for additional documents were unwarranted, as the Act only necessitates proof of vehicle registration and usage. The orders passed by the authority were set aside, directing the petitioners to submit the original registration certificates for verification, emphasizing compliance with the Act's provisions.

5. Both writ petitions were allowed, with no costs imposed, concluding that the authority's orders were not in accordance with the legal requirements of the Tamil Nadu Tax on Entry of Motor Vehicles into Local Area Act, 1990. The petitioners were instructed to provide the necessary documents for a fresh decision by the authority.