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Additional fee imposed under Central Motor Vehicles Rules is void

Case Law Details

TaxGuru Citation
2017 taxguru.in 362
Case Name
Chennai City Auto Ootunargal Sangam & Ors. Vs. The Secretary, Ministry of Road Transport and Highways (Madras High Court)
Date of Judgement/Order
Only available for paid members
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Issue- Notification with reference to the Amendment to Rule 32 and Rule 81 of the Central Motor vehicles Rules with reference to increase of Fees vide Gazette Notification in G.S.R.1183(E) dated 29.12.2016 as invalid, illegal, ultravires and unconstitutional.

Facts of the case-This batch of Writ Petitions has been filed by various Associations namely Chennai City Auto Ootunargal Sangam, Tamilnadu Driving Schools Owners Federation, Madras Metro Auto Drivers Association, Vada Chennai Maavatta Auto Ottunargal Padugappu Nalasangam and Tamilnadu Lorry Owners Federation, challenging notification issued in G.S.R.1183(E) dated 29.12.2016 amending Rule 32 and Rule 81 of the Central Motor Vehicle Rules 1989 (Rules’) fixing a new fee structure under the Motor vehicles Act 1988 (Act’) and levying additional fees for certain category of services rendered by the authorities under the Act. Though the prayer addresses the notification in entirety, challenging the same on the ground of unconstitutionality and invalidity, the petitioners, have, in the course of the hearing restricted the prayer to the levy of additional fees alone.

The main contention of the petitioners  is as follows:

The Petitioner Associations represent owners and drivers of Autos and Lorries as well as driving schools covered under the provisions of the Motor Vehicles Act 1988. The Act stipulates various conditions that are to be complied with by the members of the Associations such as the holding of valid licenses for plying of the vehicle, affixation of valid registration mark on the vehicle, norms to be followed in the conduct of driving classes etc. Section 110 of the Act authorizes the Central Government to make Rules in regard to the construction, equipment and maintenance of motor vehicles and trailors as well as various matters connected therewith.

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