Punjab Motor Vehicles Taxation Act, 1924

Punjab Motor Vehicles Taxation Act, 1924

The Punjab Motor Vehicles Taxation Act, 1924

Punjab Act No. 4 of 1924)

pu400

Received the assent of the Governor of the Punjab on the 25th November, 1924, and that of the Governor-General on the 25th January, 1925, and was first published in the Punjab Gazette of 30th January, 1925

An Act to impose a tax on motor-vehicles in [Punjab].

Preamble - whereas it is expedient to impose a tax on motor-vehicles in [Punjab] and whereas the previous sanction of the Governor-General under sub-section (3) of section 80-A of the Government of India Act has been obtained; it is hereby enacted as follows :-

1. Short title, extent and commencement. - (1) This Act may be called the Punjab Motor-Vehicles Taxation Act, 1924.

(2) It extends to Punjab

(3) It shall come into force on the 1st day of April, 1925.

2. Definitions- In this Act unless there is anything repugnant in the subject or context-

(a) "Licensing officer" means [a person] appointed by the [State] Government to perform the duties and exercise the powers imposed or conferred upon a licensing officer under this Act;

(b) "motor-vehicle" includes a vehicle, carriage or other means of conveyance propelled, or which may be propelled, on a road by electrical or mechanical power either entirely or partially;

(c) "prescribed" means prescribed by rules made under this Act;

(d) "tax" means the tax imposed under this Act;

[(e) 'token' means a ticket to be displayed on a motor vehicle as an indication that the tax leviable thereon has been duly paid or that no tax is payable.]

[the words and expression used in this Act but not defined and defined in the Motor Vehicles Act, 1988(Central Act 59 of 1988), shall have the meaning respectively assigned to them in the Act.]

3. Imposition of tax- (1) A tax shall be leviable on every motor-vehicle in equal instalments for quarterly periods commencing on the first day of April, the first day of July, the first day of October and the first day of January, at [such rates not exceeding [rupees thirty-five thousand]per vehicle for a period of one year, as the State Government may by notification direct:

Provided that any broken period in such quarterly periods shall, for the purpose of levying the tax, be considered as a full period.

Provided further that in the case of a motor vehicle registered in any State other than the State of Punjab, which is brought in the State on the basis of a temporary permit granted under section 62 of the Motor Vehicles Act, 1939 (Act 4 of 1929) tax shall be leviable for the period of duration of the temporary permit on fortnightly basis and any broken period of fortnight shall for the purpose of levying the tax be considered as full fortnight.

[(2) The tax shall be paid upon a licence to be taken out and paid for under the provisions of this Act by the person who keeps the motor vehicles for use.]

3A. Retrospective notification. - Notwithstanding anything contained in this Act.

(i) a notification under section 3, may be is issued so as to be effective on and from the commencement of the Punjab Motor Vehicles Taxation (Amendment) Act, 1981.

(ii) the tax payable by virtue of notification referred to in clause (i) for the quarters commencing on the first day of October, 1980, and the 1st day of January, 1981 may be paid within a period of one month from the date of publication of that notification.

4. Obligation of persons keeping motor vehicles to make declaration and to pay tax.- (1) Every person who keeps a motor-vehicle for use shall fill up and sign a declaration in the prescribed form, stating the prescribed particulars, and shall deliver the declaration as filled up and signed by him to the licensing officer before the 30th day of April, 1995, or if such person commences to keep the motor-vehicle for use after the 10th day of April, 1925, then before the expiration of 21 days from the day of his commencing to keep the motor-vehicles for use.

(2) The tax to which he appears by such declaration to be liable shall be paid by the person keeping the motor vehicle, if for the first quarterly period before the 30th day of April, if for the second quarterly period before the 31st day of July, if for the third quarterly period before the 31st day of October, and if for the fourth quarterly period before the 31st day of January:

Provided that if such person commences to keep the motor vehicle for use, after the 10th day of April, 1925, he shall pay the first instalment due before the expiration of 21 days from the day of his commencing to keep the motor-vehicles for use.

(3) Every person who owns any motor-vehicle which is let for hire, shall, for the purposes of this Act, be deemed to be the person who keeps the motor- vehicle for use.

[4A. Obligation to make declaration in respect of transport vehicles to pay special road tax. - (1) In respect of a transport vehicle an owner shall also be required make declarations in the prescribed form stating the prescribed particulars.]

(2) The special road tax payable under Section 3-F in respect of a transport vehicle shall be paid in the prescribed manner :

Provided that unless the manner is prescribed, the amount of tax payable quarterly and monthly shall be one fourth and one twelfth, respectively, of the annual rates of tax specified in Schedule 'A' to this Act referred to in Section 3-F.

5. Obligation to make additional declaration and to pay further tax.- Whenever any person, who has delivered a declaration under the preceding section becomes liable to an additional tax by reason of his keeping a greater number of motor-vehicles for use than he has stated in the declaration or by reason of any change in the character of any motor-vehicle kept by him for use, he shall fill up and sign an additional declaration specifying with reference to such liability the particulars required by the preceding section. Such persons shall deliver the additional declaration so filled up and signed and pay such additional tax as by the last mentioned declaration appears to be payable by him to the licensing officer before the expiration of 21 days from the day of his becoming so liable as aforesaid:

Provided that when payment is made of addition tax by reason of any change in the character of any motor-vehicles, an allowance shall be made for the tax already paid.

[5A. Obligation on revision of rates of tax.] - If as a result of revision of rate of tax as may be specified under Section 3 of Section 3-F, a motor vehicle or a transport vehicle, as the case may be, in respect of which tax has been paid, becomes liable to tax at a higher rate the owner or any person having possession or control of the motor vehicle or transport vehicle, as the case may be , shall, within the time allowed for payment of tax for the following year or quarter or month thereof, as the case may be, pay additional tax of sum which is equal to the difference between the tax already paid and the tax which becomes payable at the higher rate due to such revision in respect of such vehicles for the remainder of the complete current month of the quarter or the year, as the case may be, and the Licensing Officer shall not issue a fresh token in respect of such vehicle until such amount of tax has been paid.

6. Service of special notice to make declaration and to pay tax.- The licensing officer may direct a special notice to be served upon any person requiring such person to fill up, sign and deliver to the officer named in such notice, a form of declaration, to be left with such notice, stating whether such person is or is not liable to the payment of any tax and to pay the tax to which he appears by such declaration to be liable to the person named therein before the expiration of 14 days from the date of the service in such special notice.
7. Grant of licence- Every licensing officer shall grant and deliver to every person who pays to him the first instalment of tax due, a licence in which shall be specified the particulars of the tax paid, with any other particulars that may be prescribed. The licence shall be dated on the day of granting the same and shall expire on the 31st day of March, next following.

[7A. Owner to furnish security. - (1) The Licensing Officer, for the proper realisation of tax levied under this Act, shall after giving an opportunity of being heard, required any owner of the transport vehicle to deposit as security an amount not exceeding fifty thousand rupees in the prescribed manner where such an owner make a default in the payment of tax under this Act for a continuous period of two months or more.

(2) Where the security furnished by an owner of a transport vehicle under sub-section (1) is the form of a surety bona and the surety becomes insolvent or is or is otherwise incapacitated or dies or withdraws, such owner shall within fifteen days of the occurrence of any of the aforesaid events, inform the Licensing Officer and shall within thirty days of such occurrence, furnish a fresh surety bond.

(3) The Licensing Officer may, by an order in writing for good and sufficient cause and after giving the owner a reasonable opportunity of being heard forfeit the whole or any part of the security furnished by such owner for realising any amount of tax, interest or penalty payable by him under this Act.

(4) Where by reason of an order under sub-section(3), the security furnished by such owner is rendered insufficient, he shall make up the deficiency in such manner and within such time as may be prescribed.

(5) The Licensing Officer may, on an application by such owner release the security furnished by him or any part thereof, if the same is no longer required to be retained for the purpose of this Act.

7B. Maintenance of Accounts and determination of tax. - (1) An owner of a transport vehicle may be required to maintain such accounts as may be prescribed and to submit the same to the Licensing Officer, as and when required.

(2) If the Licensing Officer is satisfied that tax not been correctly paid or the owner has not furnished declaration as provided in sub-section (1) of Section 4-A or has given inaccurate particulars in the declaration, he shall, after giving the owner a reasonable opportunity of being heard, proceed to determine the amount of tax due and recover the same.

7C. Re-determination of tax. - (1) If in consequence of an information, the Licensing Officer discovers that the tax due from the owner has been under determined or escaped determination in any year, the Licensing Officer, may, at any time within ten years following the close of the year for which re-determination is to be made and after giving the owner a reasonable opportunity in the prescribed manner of being heard, proceed to re-determine the tax payable.

(2) The Licensing Officer, may, at any time, within one year from the date of any order passed by him and subject to such conditions as may be prescribed rectify any clerical or arithmetical error apparent from the record.]

[8. Offences and Penalties] - (1) Whoever :

(a) keeps in his possession or control any motor vehicle, in the State, without having paid the amount of tax due in accordance with the provisions of this Act in respect of such vehicle or keeps the motor vehicle for use without having proper licence or furnishes a declaration under Section 4 or Section 4-A wherein the particulars required by or under this Act to be furnished, are not fully and truely stated; or

(b) fails to stop the motor vehicle when required to do so by the said Officer or obstructs any officer in the exercise of the powers conferred by Section 14-B, shall on conviction be punishable with fine, which may extend to a sum equal to twice the average monthly tax payable, in respect of such vehicle, or rupees five thousand, whichever is more.

(2) Whenever, the Licensing Officer determines or re-determines the tax in respect of a transport vehicle under Section 7-B or in respect of an owner of motor vehicle under Section 7-C, as the case may be, which such owner was liable to pay, and has not paid, the Licensing Officer, may, after giving an opportunity of being heard, also direct that such owner shall pay in the prescribed manner by way of penalty, a sum not exceeding five times the amount of tax so assessed subject to a minimum of five thousand rupees.

(3) If a person (a) fails to furnish a declaration in accordance with the provisions of this Act, or (b) furnishes a declaration wherein particulars prescribed to be therein, are not fully and truly stated, the Licensing Officer may after making such enquiry, as he deems fit and after hearing the persons, if he desire to be heard, impose on such person any tax or additional tax for such quarterly period or periods, as the Licensing Officer may find that such person is liable to pay under the provisions of this Act and may also impose a penalty, which may extend to twice the amount of the tax to which he is found liable.

(4) Whoever contravenes or fails to comply with any of the provisions of this Act, or the rules made thereunder or any order or direction, made or given thereunder, in respect of tax liable on transport vehicle shall be liable to imposition of penality not exceeding five thousand rupees but not less than one thousand rupees :

Provided that before imposing such penalty a reasonable opportunity of being heard shall be given to the person concerned.

(5) Whoever contravenes any of the provisions of this Act, or any rules, made thereunder, and no penality is provided for such contravention, shall on conviction be punishable with a fine, which may extend to five hundred rupees and in the event of such person, having previously been convicted of an offence under this Act, or the rules made thereunder, with fine which may extend to one thousand rupees.

9. Compounding of Offences.- Where an offence under this Act has been committed, such an offence may at any time before conviction. be compounded by any officer of the Transport Department not below the rank of Assistant District Transport Officer authorised by the Commissioner in this behalf, after accepting by way of composition thereof, a sum of money not exceeding such amount, as may be prescribed, together with the amount to tax, if any, which may be due from the person committing the offence. Such composition shall have the effect of discharging such person from liability for the offence and no further proceedings shall be taken or continued against him in respect of the offence so compounded.]
10. Recovery of tax or additional tax imposed under section 8 or section 9.- Any tax or additional tax imposed under the provisions of section 8 or section 9 may be recovered in the manner provided in section 11 for the recovery of an arrear of tax.
11. Recovery of an arrear of tax.- When a person neglects or refuses to pay an instalment of tax within one month from the expiration of period fixed for such payment, the licensing officer may forward to the [Commissioner]a certificate under his signature specifying the amount of the arrears due from the person, and the [Commissioner] on receipt of such certificate shall proceed to recover from such person the amount specified therein as if it were an arrears of land revenue.

11A Payment of interest. - (1) If an owner fails to pay tax due from him as required under Section 3 or Section 3-F, he shall in a addition to the amount of tax be liable to pay simple interest on the amount of tax due from him at the rate of one and half percent per month from the date immediately following the last date for the submission of declaration as provided in sub-section (1) of Section 4-A till the default continues.

(2) If the amount of tax under Section 3 or Section 3-F or penalty under Section 8 due from an owner is not paid by him within the period specified in the prescribed notice, or, if no period is specified in the notice, within thirty days from the service of such notice, the owner shall in addition to the amount of tax or penalty, be liable to pay simple interest on the due amount of tax or penalty, as the case may be, at the rate of one and a half percent per month from the date following the date on which the period specified in the aforesaid notice or the period of thirty days, as the case may be, expires till the default continues :

Provided that where the recovery of any tax or penalty is stayed by an order of a court, the amount of tax or penalty shall, after the order of stay is vacated, be recoverable along with interest at the aforesaid rate on the amount due and such interest shall be payable from the date, the tax or penalty had first become due.

(3) The amount of interest payable under this section shall be calculated by treating part of a month as one month but no interest shall be chargeable if the total amount payable on account of tax or penalty or both is fifty rupees or less and if such an amount is more than fifty rupees but less than one hundred rupees, interest shall be calculated treating such amount to be one hundred rupees.

11B. Power of Licensing Officer to recover tax, interest and penalty. - (1) Without prejudice to the provisions of Section 11, the Licencing Officer may proceed to recover tax, interest or penalty due under this Act, in the prescribed manner, by attachment and sale of the moveable property of the persons liable for the payment thereof.

(2) The Licencing Officer may also recover tax, interest or penalty due under this Act in instalments but he shall not grant more than four equal instalments payable on monthly basis.

[11C. Liability of transferee of vehicle.] - (1) If the tax leviable in respect of any motor vehicle remains unpaid by any person liable for payment thereof and any such person, before having paid the tax, has transferred the ownership of such vehicle, or has ceased to be in possession or ownership of such vehicle, the person to whom the ownership of such vehicle has been transferred or the person who has possession or control of such vehicle, shall also be liable to pay the said tax.

(2) Nothing contained in this section shall apply to a person, who has obtained possession or control of such vehicle by purchase in a public tax, interest or penalty except under the orders of a competent courts.

[12. Appeal.] - Any Person aggrieved by an order relating to the determination, re-determination, imposition or recovery of the tax, interest or penalty may, within a period of thirty days from the date of such order, appeal against such order to the Commissioner or if the Commissioner is the officer who passed such order, then to the Government. The appellate order of the Commissioner or the Government, as the case may be, shall be final and conclusive :

Provided that no appeal shall be entertained unless it is accompained by a satisfactory proof of payment of tax, interest or penalty or such other amount as is admitted by the appellant to be due from him.

12A Revision. - (1) The Commissioner, on his own motion, or on application made to him in the prescribed manner, may call for the record of any proceedings, which are pending before or have been disposed of by any other authority subordinate to him under this Act for the purpose of satisfying himself as to the legality or propriety of such proceedings or of any order made therein and may pass such order in relation thereto as he may think fit :

Provided that the owner may make such application only within one year from the date of the order required to be revised.

(2) no application under sub-section(1) shall be entertained unless the application is accompanied by a satisfactory proof of the payment of the tax or interest or of the penalty, if any, imposed, as the case may be :

Provided that if the Commissioner is satisfied that the owner is unable to pay the tax determined or interest or the penalty, if any, imposed, he may, for reasons to be recorded in writing, entertain the application without the tax or interest or penalty having been paid or after part payment of such tax or interest or penalty :

Provided further that if the owner of a motor vehicle has preferred, a revision under this section, the Commissioner, may, on an application in writing from the owner of such vehicle stay the recovery of the disputed amount of tax, interest or penalty or any part thereof, during the pendency of the revision, if the owner furnishes security in such form and in such manner as may be prescribed, for the entire amount for which stay has been prayed for:

Provided further that if the recovery of tax, interest or penalty or any part thereof is stayed, under the preceding proviso, then such an amount shall be recoverable with interest at such rate, as may be prescribed, on the amount ultimately found due and such interest shall be payable on such amount from the date the same had become first due.

(3) No order shall be made under this section without giving an owner or any other person interested a reasonable opportunity of being heard.

[13. Refund and exemption.] - (1) When any person, who has paid the tax under Section 3 of Section 3-F, proves to the satisfaction of the Commissioner in the prescribed manner that the motor vehicle or the transport vehicle in respect of which such tax has been paid, has not been used for a continuous period of not less than one month since the tax was last paid, he shall be entitled to the exemption in respect of that tax and to the refund of an amount equal to one twelfth of the annual rate of tax paid in respect of such vehicle for each complete month for which such tax has been paid and an endorsement to the effect on the licence shall be made by the licensing Officer.

(2) The Licensing Officer may refund or adjust in the prescribed manner any amount paid in excess of the tax due.

(3) The Government may, by general or special order and subject to such conditions, as may be specified, exempt any person or class of persons from the operation of all or any of the provisions of this Act, if in its opinion, such exemption would promote national or public interest.

(4) Nothing in this Act shall apply to a motor vehicle used solely for the purpose of Agriculture.

14. Bar to jurisdiction of civil and criminal courts in matters of taxation.- The liability of a person to pay the tax or penalty shall not be determined or questioned in any other manner or by any other authority than is provided in this Act or in rules made thereunder, and no prosecution, suit or other proceeding shall lie against any Government Officer for anything in good faith done or intended to be done under this Act.

14A. Cognizance of offences. - (1) No court inferior to that of a Judicial Magistrate of First Class shall try and offence punishable under this Act.

(2) The court shall not take any cognizance except upon a complaint made by the Licensing Officer in this behalf.

14B. Power to stop, search and seizure. - (1) Any officer of the Transport Department, not below the rank of Assistant District Transport Officer authorised by a general or special order, in this behalf, by the Commissioner, may require the driver of any motor vehicle at any place to stop the vehicle and cause it to remain stationary so long as may be reasonably necessary for the purpose of satisfying himself that the amount of tax due in accordance with the provisions of this Act in respect of such vehicle, has been paid.

(2) Where any tax due in respect of any vehicle has not been paid, any office referred to in sub-section (1), may seize and detain such vehicle and take or cause to be taken such steps as he may consider necessary for the safe custody of the vehicle until it is produced before the Licensing Officer of the area concerned, within a reasonable time or until the tax due in respect of the vehicle is paid :

(3) Any officer of the Department of Transport referred to in sub-section (2), may for the purpose of this Act enter at any time between sun rise and sun set, in any premises, where he has reason to believe that a motor vehicle is kept in contravention of the provision of this Act.

[14C. Tax Payable by dealer or manufacturer.] - If dealer or manufacturer of motor vehicles keeps any such vehicle in his possession, in course of his business as such dealer or manufacturer and such possession is authorised under a trade certificate granted under the Central Motor Vehicles Rules, 1989, he shall pay a tax at the specified annual rate.

15. Power of State Government to make rules.- (1) The State Government may after previous publication make [rules for the purpose of carrying into effect the provisions of this Act.]

(2) In particular and without prejudice to the generality of the foregoing power, the State government may make rules for all or any of the following purposes, namely:

(a) to prescribed the form of any declaration, licence, certificate or special notice and the particulars to be stated therein,

(b) to prescribe the officers by whom any duties are to be performed and the area in which they shall exercise their authority,

(c) to provide for the total or partial exemption for a limited period from liability to taxation in respect of any motor-vehicle brought into [Punjab] by person making only a temporary stay in [Punjab],

(d) to regulate the method of assessing and recovering the tax,

(e) to regulate the manner in which special notices may be served,

(f) to regulate the extent to which licenses may be transferred,

(g) to regulate the manner in which exemptions or refunds may be claimed and granted,

(h) to regulate the manner in which appeals may be instituted and heard,

[(i) to require that no motor-vehicle shall be used in the State unless a token is displayed thereon indicating that the tax has been duly paid or that the owner of the vehicle is entitled to exemption],

(j) to prescribe the form of token and the manner in which they shall be displayed,

(k) to provide for the issue of token and its duplicate.

[16. Delegation of Power. - The Commissioner may by general or special order in writing delegate its power of hearing an appeal or revision to any person not below the rank of Deputy State Transport Commissioner.]

Schedule

[* * * * * * * * * * * * * Schedule]

Notification

The 14th June, 1982

No. S.O./P.A.4/24/S. 3/82. - In supersession of Government of Punjab, Department of Transport, Notification No. S.O. 50/P.A.4/24/S.3/71, dated the 10th November, 1971 and in exercise of the powers conferred by sub-section (I) of section 3 of the Punjab Motor Vehicles Taxation Act, 1924(Punjab Act No. 4 of 1924) and all other powers enabling him in this behalf, the Governor of Punjab is pleased to direct that with effect from the quarterly period commencing on the first day of July, 1982, there shall be levied a tax on every motor vehicle at the rate specified against each in the Schedule given below, namely :-

• Punjab Motor Vehicles Taxation Rules 1925