The Hindu : National : MV tax: notice to Kerala on plea against stipulation

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Saturday, Nov 24, 2007
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MV tax: notice to Kerala on plea against stipulation

Legal Correspondent

Seeking proof of welfare fund contribution unconstitutional
Requirement will hit stage carriage operations

New Delhi: The Supreme Court on Friday issued notice to the Kerala government on a special leave petition (SLP) filed by the Ottapalam Taluk Private Bus Operators Association challenging a High Court judgment upholding a stipulation on collection of motor vehicles tax.

A Bench consisting of Justices S.H. Kapadia and B. Sudershan Reddy issued the notice after hearing K. Radhakrishnan, counsel for the petitioner, who also sought a stay of the July 30, 2007 judgment.

According to the petitioner, the government introduced an amendment to Section 4 of the Kerala Motor Vehicles Taxation Act by which “no tax on stage carriages shall be collected without the production of receipt for remittance of contribution towards the Motor Transport Welfare Fund by vehicle owners.” The High Court held that this amendment was not repugnant to the Central law, the Motor Vehicles Act, 1988.

In his SLP, the petitioner said the amended provision transgressed on the field occupied by the law enacted by Parliament. It “is a piece of colourable legislation and hit by Articles 14 [equality before law] and 19 (1) (g) [carrying on with one’s occupation] of the Constitution.” The requirement to produce the receipt as proof of remittance to the welfare fund for acceptance of MV tax was unconstitutional and would adversely affect stage carriage operations.

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