Compute Motor vehicle tax based on purchase invoice value and not on value listed in local website: HC

Fathima Abdulkhadar Vs Regional Transport Officer (Kerala High Court)

Conclusion: Motor Vehicle tax as per Kerala Motor Vehicle Taxation Act, 1976  should be calculated only upon the purchase invoice value and not upon the value listed in the local web portal as assessee’s case did not fall in the 2nd proviso of the operative portion of Sec.2(e) of the Kerala Motor Vehicle Taxation Act, 1976.

Held: Assessee had purchased a new car from Madhya Pradesh for a total sum of Rs.63,40,000/- as per Ext.P-1 purchase invoice issued by M/s.A Cars (P) Ltd and had applied for registration in the state of Kerala. According to assessee, going by the provisions of the Kerala Motor Vehicle Taxation Act, 1976, and the Annexure I appended to the Schedule of the said Act, the motor vehicle tax payable by assessee was 21% of the purchase value of the vehicle. Whereas, the 1st respondent contended that, motor vehicle tax should be paid at the rate of 21% on Rs.79,99,999/- which was stated to the local price of the same brand car, as per the 2^nd proviso to Sec.2(2) of the Kerala Motor Vehicle Taxation Act, 1976. It was held that the stand of the respondents that they could accept motor vehicle tax only at the rate of 21% of the figure shown by the manufacturer in the web portal, etc could not be accepted. Of course, in a case where the respondents had a doubt about the genuineness of the figures shown in the purchase invoice, certainly they were entitled to conduct appropriate enquiry to find out whether there was manipulation, etc. But, in a case where the figures shown in the purchase invoice were not in any manner manipulated, and was the genuine figures shown therein by the dealer in the purchase invoice, and the respondents did not have a case that the said purchase value was not inclusive of VAT, GST or other taxes, duties etc, as envisaged in the 2^nd limb of the operative portion of Sec.2(e) of the Kerala Motor Vehicle Taxation Act, 1976, or that the figure was on the basis of discount or rebate given by the dealer to the registered owner, etc, or that the car had been purchased from a foreign country, or that the car had been obtained not on the basis of purchase, and therefore it’s purchase value was not known on account of non availability of the invoice, etc the scenario would be as covered in this Court’s judgement dated 30.1.2020 in WP(C).No.2399/2020. If the contentions of the respondents were accepted, then it amounted to substituting the present definition of “purchase value” as per Sec. 2(e) with the understanding that it was the value of the vehicle as shown by the manufacturer in the Parivahan web portal. Accordingly, the above said stand taken by the respondents was illegal and ultra vires.

FULL TEXT OF THE HIGH COURT ORDER / JUDGEMENT

Since common issues arise in these cases, both the Writ Petitions (Civil) are disposed of on the basis of this common judgment. WP(C). No. 1190 of 2020 is taken as the lead case for the purpose of convenience.

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