Harish Kumar K.P. Vs Union of India (Kerala High Court)
Kerala High Court held that taxes on motor vehicles are the exclusive domain of the States under Article 246, read with Entry 57 of List II of the Seventh Schedule. Thus, in case of Bharat Series (BH series) registration too taxes will be payable as per Kerala Motor Vehicle Taxation Act, 1976.
Facts- The petitioners in these writ petitions are the Central Government employees and employees of the Central Government Undertakings, including the Banks. The petitioners are aggrieved by the non-registration of their new vehicles under the Bharat Series (BH series) in the State of Kerala by the Transport Authorities. Therefore, the petitioners have filed these writ petitions seeking a writ of mandamus directing the respondent State Authorities to register their vehicles under the BH Series.
Conclusion- The Central Government has the power to lay down the principles for taxation on mechanically propelled vehicles by the State. The Central Government may lay down the principles by enacting a law or by subordinate legislation. However, the taxes on motor vehicles are the exclusive domain of the States under Article 246, read with Entry 57 of List II of the Seventh Schedule. The tax includes the rate of tax. Therefore, the Central Government would not have the power to prescribe for rate of tax on motor vehicles. However, it can lay down the principles on which the motor vehicles are to be taxed.
