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TMI Blog1980 (6) TMI 119X X X X Extracts X X X X X X X X Extracts X X X X ..... of Kerala and respondents nos. 2 and 4 are the authorities functioning under the Kerala Motor Vehicles taxation Act (Act 24 of 1963) which will hereafter be referred to as the Act, was brought into force on 1-7-1963. The Act provides that "a tax at the rates fixed by the Government by notification in the Gazette not exceeding the maximum rates specified i the First Schedule shall be levied on all Motor Vehicles used or kept for use in the State." The appellant company owned 17 motor Vehicles, tractors, trailers and lorries all of which are registered in the company's name under the Motor Vehicles Act. The company alleged that the vehicles were purchased by it solely and exclusively for use in the estates and intended to be used only for agricultural purpose and were not used nor kept for use in the State as contemplated under s. 3 of the Act. The company is a tea plantation having eight estates which lie contiguous to each other and have an extent of 9422.44 acres in the aggregate. The company for the purpose af plantation are maintaining roads fit for vehicular traffic in the eight estates covering a length of 131 miles in the aggregate on 23rd September, 1964 a Bedford ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ads. The learned Judge also held that the Act is not beyond the competence of the legislative powers of the State as the tax is leviable by the State in respect of all motor vehicles are used or kept for use in the State quite irrespective of any question as whether or not such vehicles are used on public roads. Aggrieved by the decision of the single Judge the appellant took the matter up on Letters Patent Appeal. The main contention raised - on behalf off the appellant was that the learned single Judge was in error in holding that all motor vehicles used or kept for use in the State quite irrespective of any question as to whether or not they are used on public roads, is erroneous in so far as it related to motor vehicles used or kept exclusively for use in private estate and not used or kept for use on the public roads of the State. The Letters Patent Bench affirmed the decision of the single Judge and rejected the appeal. The constitutional validity of the Act was not questioned before the Bench. Holding that the legislative Entry 57 if the State list only required that the vehicles should be suitable for use on roads and the charging section only provided that the vehicle sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion raised, it is necessary to refer to the relevant entry in the Constitution, the provisions of the Act and the Motor Vehicles Act and the decision relating to the question rendered by this Court. (Entry 57 in List II of the Constitution relates to taxes on vehicles, whether mechanically propelled or not, suitable for use on roads, including tramcars subject to the provisions of entry 35 of List III. This entry enables the State Government to levy a tax on all vehicles whether mechanically propelled or not, suitable for use on roads.) (emphasis supplied). There is no dispute that the vehicles are mechanically propelled and suitable for use on roads. Section 3 of the impugned Act (Kerala Motor Vehicles Taxation Act (Act 24 of 1963) provides that a tax "shall be levied on all motor vehicles used or kept for use in the State." The levy is within the competence of the State legislature as entry 57 in List II authorises by on vehicles suitable for use on roads. It has been laid down by this Court in "Bolani Ores Ltd. v. Orissa," that under Entry 57 of List II, the power of taxation cannot exceed compensatory nature which must have some nexus with the vehicles usin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hus in order to enable the registered owner or person in possession or control of a vehicle to get exemption of tax, advance intimation of the R.T.O. along with the surrender of certificate of registration is necessary. The provision of s. 3, sub-sec. (2) as well as 6. 5 and s. 6 are meant to prevent evasion of tax and to provide for exemption from tax in proper cases. Though the purpose of the Act is to tax vehicles that are used or kept for use on the public roads of the State, the State is entitled for the purpose of safeguarding the revenues of the state and to prevent evasion of the tax, to enact provision like provision as in s. 3 raising' a presumption that the vehicle is used or kept for use in the Situate without any further proof unless exemption is claimed under s. 3(2), s. 5 and s.6. It may be observed that reading sections 3, 5 and 6 it is clear that a levy of tax is contemplated only on the vehicles. that are used or kept for use on the public roads of the state. 'While we agree with the contentions of the learned counsel for the appellant that the tax is only eligible on vehicles used or kept for use on public roads, we must deserve that in order to claim exemption ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y s. 2(18) of the Motor Vehicles Act, 1939 and excluded from taxation motor vehicles "used solely upon the premises of the owner." As the vehicles with which we arc concerned were claimed to have been kept for use solely in the premises of the company, it was contended that the vehicles are not exigible to tax. This Court in the decision cited was dealing with the Orissa Motor Vehicles Taxation Act, 1930. Section(2c) of the Orissa Taxation Act adopted the definition of Motor vehicles Act as found in Motor Vehicles Act, 1914. The Motor vehicles Act. ]914 was repealed and replaced by the Motor Vehicles Act, 1939. The definition of motor vehicle' in s. 2(18) of the Motor Vehicles Act, 1939 excluded motor vehicles used solely upon the premises of the owner. The Orissa Motor vehicles Taxation Act was amended and orissa Amendment Act, 1943 re-enacted the provisions of the Taxation Act. 'Motor Vehicles' was defined under s. 2(18) of the Motor Vehicles Act, 1939 excluding vehicles used solely upon the premises of the owner. Subsequently the definition of 'motor vehicle' under s. 2(18) of the Motor Vehicles Act was amended by the Act 100 of 1956 which confined the exemption from t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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