Ajai.R vs State Of Kerala
2023 Latest Caselaw 10052 Ker

                IN THE HIGH COURT OF KERALA AT ERNAKULAM
                                  PRESENT
              THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH
         MONDAY, THE 18TH DAY OF SEPTEMBER 2023 / 27TH BHADRA, 1945
                           WP(C) NO. 30372 OF 2023
PETITIONER/S:
           AJAI.R, AGED 48 YEARS, RAMATH HOUSE, POST-PONMERI
           PARAMBIL, VIA- VILLIAPPALLY, VATAKARA, KOZHIKODE., PIN -
           673542

             BY ADVS. K. RAKESH ROSHAN; THUSHARA.V


RESPONDENT/S:
     1    STATE OF KERALA, REPRESENTED BY PRINCIPAL SECRETARY,
          DEPARTMENT OF REVENUE, SECRETARIAT,
          THIRUVANANTHAPURAM., PIN - 695001

     2       THE DEPUTY TAHASILDAR, TALUK OFFICE, VATAKARA, KOZHIKODE
             DISTRICT, PIN - 673101

     3       SYD MOHAMMED SHAFFI, S/O. SAIDALI, CHALAPURAM
             CHAKKARAKKANDIYIL, POST- KUMMANGOD, VATAKARA-TALUK,
             KOZHIKODE, PIN - 673506


OTHER PRESENT:
           Jasmine M.M.-G.P


         THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
18.09.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 W.P.(C) No.30372/2023
                                    -2-


                        JUDGMENT

Heard Mr Rakesh Roshan K, learned Counsel for the

petitioner, and Ms Jasmin M M learned Government Pleader

for the State.

2. The petitioner, who is the owner of a mini lorry

bearing registration number KL-13-J-7288, is in arrears of

motor vehicle tax. The 2nd respondent issued a Revenue

Recovery notice (Ext.P3) dated 29.07.2023 for recovery of the

tax due with effect from 01.10.2019 on the vehicle.

3. Learned Counsel for the petitioner submits that the

impugned recovery notice is illegal and beyond the

jurisdiction inasmuch as it has been issued beyond the

limitation period of three years for recovery of the tax due on

the motor vehicle. The next submission of the learned Counsel

for the petitioner is that the vehicle was sold to the 3 rd

respondent vide agreement dated 21.07.2018. Therefore, the

petitioner is not liable to pay tax on the said motor vehicle

from 21.07.2018.

W.P.(C) No.30372/2023

4. Section 26 of the Kerala Motor Vehicles Taxation

Act 1976 provides a limitation of 10 years for recovery of the

escaped tax on the motor vehicle. Section 26 on reproduction

would read as under:

"26. Escaped assessment.- If, for any reason, the whole or any portion of the tax which would have been payable in respect of any motor vehicle under the Kerala Motor Vehicles Taxation Act, 1963 (24 of 1963) or under the Kerala Motor Vehicles (Taxation of Passengers and Goods) Act, 1963 (25 of 1963) or under this Act for any period has escaped assessment, the Taxation Officer may, at any time within, but not beyond, ten years from the expiry of that period, assess the tax which has escaped assessment after issuing a notice to the registered owner or the person having possession or control of the motor vehicle and making such inquiry as he may consider necessary:

Provided that in computing the period of limitation for the assessments of tax under this section, the periods, if any, during which such assessment has been stayed by order of any court shall be excluded:"

5. Admittedly, the petitioner did not pay the tax due

on the motor vehicle since 2018. Therefore, it should be W.P.(C) No.30372/2023

treated as an escaped assessment of the motor vehicle of the

petitioner. Therefore, I do not find any substance in the

submission of the learned Counsel of the petitioner that the

limitation period is three years for recovery of tax due on the

motor vehicle.

5.1 In respect of the second submission, the learned

Counsel has fairly admitted during the course of the argument

that in pursuance of the agreement between the petitioner

and 3rd respondent, the vehicle was not transferred in the

name of the 3rd respondent. The petitioner remained the

owner of the vehicle so far as the transport authorities are

concerned. Once the petitioner is the owner of the vehicle, he

cannot escape the liability on the ground of some agreement

entered between him and the 3rd respondent, which was not

given effect. Thus, I find no substance in this writ petition and

is hereby dismissed.

5.2 At this stage, the learned Counsel for the petitioner

submits that he would move an application under Section 22 W.P.(C) No.30372/2023

of the Kerala Motor Vehicles Taxation Act 1976 before the

Government for granting him instalments for payment of the

arrears of tax on the motor vehicle. The petitioner is at liberty

to move the application before the appropriate authority for

granting him instalments.

Sd/-

DINESH KUMAR SINGH JUDGE jjj W.P.(C) No.30372/2023

APPENDIX OF WP(C) 30372/2023 PETITIONER EXHIBITS

Exhibit P-1 TRUE COPY OF THE AGREEMENT EXECUTED IN BETWEEN PETITIONER AND 3RD RESPONDENT ON 21/7/2018 ALONG WITH ITS ENGLISH TRANSLATION.

Exhibit P-2 TRUE COPY OF THE UNDATED NOTICE BY THE S.I OF POLICE DURING 2020 TO THE PETITIONER ALONG WITH ITS ENGLISH TRANSLATION.

Exhibit P-3 TRUE COPY OF THE REVENUE RECOVERY NOTICE DATED 29/7/2023 ISSUED BY THE 2ND RESPONDENT AS STATED ABOVE ALONG WITH ENGLISH TRANSLATION IS HEREWITH PRODUCED AND MARKED AS EXHIBIT P-3.