Andhra Pradesh Motor Vehicle Taxation Act, 1963 – s.3 – Interpretation – Andhra Pradesh Motor Vehicles Taxation Rules, 1963 – r.12A – Motor Vehicle Act, 1988 – s.2(34) – ‘public place’ – Appellant was awarded a contract for handling and storage of iron and steel materials at central dispatch yard within Visakhapatnam Steel Plant, Andhra Pradesh, a corporate entity of Rashtriya Ispat Nigam Limited (RINL) – It deployed motor vehicles for plying within the central dispatch yard premises, a restricted area with members of the public not having access to enter the premises – Appellant sought exemption from payment of motor vehicle tax u/s.3 for the period the vehicles were confined and used within the premises – However, Respondent No.4 raised demand towards motor vehicle tax – Paid by the appellant under protest – Eventually, Single Judge held that appellant was plying its vehicles within the central dispatch yard which is not a ‘public place’ and directed the respondents to refund the amount paid to the appellant – Division Bench relying upon r.12A, set aside the order of Single Judge – Challenge to:
Held: 1.1 Impugned judgment set aside and that of the Single Judge is restored – s.3 is the charging provision authorizing the State Government to impose tax on motor vehicles – The taxable event u/s.3 is when a vehicle is used or kept for use in a ‘public place’ in the State – Therefore, the tax is on the user or intendment for use of motor vehicle in a ‘public place’ – Thus, if a vehicle is actually used in a ‘public place’ or kept in such a way that it is intended to be used in a ‘public place’ then the tax liability accrues. [Paras 45, 51]
1.2 Motor vehicle tax is compensatory in nature having a direct nexus with the end use – The rationale for levy of motor vehicle tax is that a person who is using public infrastructure, such as, roads, highways etc. has to pay for such usage – Legislature has consciously used the expression ‘public place’ in s.3 – If a motor vehicle is not used in a ‘public place’ or not kept for use in a ‘public place’ then the person concerned is not deriving benefit from the public infrastructure; therefore, he should not be burdened with the motor vehicle tax for such period – Under s.2(34), MV Act, ‘public place’ inter alia means a road, street, way or other place, whether a thoroughfare or not, to which the public have a right of access. [Paras 28.1, 46]
1.3 Further, there is omission of the expression ‘public place’ in r.12A (Liability for payment of tax in respect of motor vehicles kept for use) – Opening words thereof are ‘for the purpose of Section 3 of the Act’ – Thus, purpose of r.12A is to give effect to s.3 – Question is not of the motor vehicle being deemed to be kept for use and hence liable to tax – Requirement of law is that the motor vehicle should be used or kept for use in a ‘public place’ – When admittedly the motor vehicles of the appellant were confined for use within the RINL premises which is a closed area then question of the vehicles being used or kept for being used in a ‘public place’ does not arise – The words appearing in r.12A i.e. ‘a motor vehicle shall be deemed to be kept for use’ has to be read as ‘a motor vehicle deemed to be kept for use in a public place’ – Also, s.4(1)(b) enables a person whose motor vehicle was not used during the period for which the motor vehicle tax has been paid to seek refund – The motor vehicles in question were used or kept for use only within the restricted premises of RINL which is not a ‘public place’ – Therefore, the said vehicles are not liable to be taxed for the period the said vehicles were used or kept for use within the restricted premises of RINL – Constitution of India – Art.265, Entry 57 of List II, Entry 35 of List III. [Paras 47, 49, 50] Andhra Pradesh Motor Vehicle Taxation Act, 1963 – s.3 – Andhra Pradesh Motor Vehicles Taxation Rules, 1963 – r.12A – Liability for payment of tax in respect of motor vehicles kept for use – Purpose and mandate of, stated:
Held: Purpose of r.12A is to give effect to s.3 – A rule cannot traverse beyond the scope and ambit of the parent statute – r.12A has to be interpreted in such a way so as to be in sync with s.3 – Further, intimation in writing to the Licensing Officer would be required only when there is stoppage of user of the motor vehicle, be it in a ‘public place’ or in any other place – Therefore, such a requirement is not attracted in a case like the present one where the contention is that the motor vehicles of the appellant were not being used or kept for use in a ‘public place’ – Even in the absence of any intimation in terms of r.12A, motor vehicles of the appellant cannot be subjected to motor vehicle tax for the period those were used or kept confined within the restricted premises of RINL. [Paras 29.1, 47, 48, 50]
Constitution of India – Art.265 – Taxes not to be imposed save by authority of law:
Held: Levy of tax has to be explicit – There cannot be exaction of tax by implication or by following an interpretative process – The charging section is the core of a taxing statute – A taxing statute has to be construed literally; this is more so in the case of a charging section – A subject is not to be taxed unless the words of the relevant taxing statute unambiguously imposes the tax on him. [Paras 36, 37]
Words and Phrases – ‘public place’ – Definition – Motor Vehicle Act, 1988 – s.2(34) – Andhra Pradesh Motor Vehicles Taxation Rules, 1963 – r.12A – ‘a motor vehicle shall be deemed to be kept for use’ – To be read as ‘a motor vehicle deemed to be kept for use in a public place’. [Paras 28.1, 47]
As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Divya Pandey. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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