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Judgment
T. Raja, J.—The present writ petition is filed by the Petitioner under Article 226 of the Constitution of India challenging the impugned order
passed by third Respondent, the Regional Transport Authority, Namakkal in proceedings No. 91641/E4/2010 dated 01.11.2010 and to quash
the same and for a consequential direction to the third Respondent to accept the tax @ 6% for two years on the auction value of the vehicle
bearing Reg. No. TN 09Q 1120 at Rs. 38,500/- .
Learned Counsel appearing for the Petitioner submitted that the Petitioner has participated in a public auction held by the first Respondent-The
Commissioner, Panchayat Union, Puduchatiram, Namakkal District on 19.8.2010 for purchasing the old jeep bearing Regn. No. TN09Q 1120.
Having become the successful bidder, the Petitioner was declared as the ""successful bidder"" for a sum of Rs. 38,500/- along with 12.5% VAT and
4% additional tax. The Petitioner has also paid the total sum of Rs. 44,850/- to the first Respondent. After that the Petitioner as per the direction
issued by the first Respondent had paid the insurance amount for the above said vehicle. After paying the insurance, he approached the second
Respondent, Transport Commissioner, Chepauk for transfer of permit and mutation of name in all the records. Again the second Respondent
directed the Petitioner to pay life tax which comes to Rs. 20,000/- . The grievance of the Petitioner at this juncture is that the vehicle was 12 years
old at the time of his purchase from auction held on 19.8.2010. Since the Government has not paid the life tax to the vehicle, the second
Respondent insisted the Petitioner by letter dated 26.10.2010 to pay life tax at the rate of 6% as per the purchase amount during 1998. But the
Petitioner is prepared to pay life tax at the rate of 6% only at the rate of purchase made by him on 19.8.2010. Therefore, the Petitioner came to
this Court by challenging the impugned order issued by the third Respondent-Regional Transport Authority, Namakkal demanding payment of life
tax at the rate of 6% at the cost of the vehicle sold in the first sale.
In reply, the learned Government Advocate submitted that the Tamil Nadu Government Gazette-Extraordinary published on 24.5.2010, Part
IV-Section 2 indicates how much will be the life tax taxable on the vehicle from the purchaser. In the Tamil Nadu Motor Vehicles Taxation Act,
1974, for the Third Schedule, the following Schedule is substituted.
THIRD SCHEDULE.
[See Section 4(1-A)]
PART-I
New motor vehicles
Rate of Tax
At the time of registration (i) Total cost of the vehicle not exceeding
rupees ten lakhs - 10 percent.
(ii)Total cost of vehicle exceeding rupees
ten lakhs - 15 percent
PART-II
Old motor vehicles
At the time of assigning new Registration mark u/s 47 of the Motor Vehicles Act, 1988 (Central Act 59 of 1988), or old motor vehicles plying and
registered in this State, and if it''s age from the month of such registration is,-
Rate of tax
Cost of the vehicle Not exceeding rupeesCost of the vehicle exceeding ten lakhs
Ten lakhs
Not more than one year 8.75 percent of the cost of vehicle 13.75 percent of the cost of vehicle
More than one year but not more than8.50 percent of the cost of vehicle 13.50 percent of the cost of vehicle
two years
More than two years but not more 8.25 percent of the of vehicle 13.25 percent of the cost of vehicle
than three years
More than three years but not more 8.00 percent of the cost of vehicle 13.00 percent of the cost of the vehicle
than four years
More than four years but not more 7.75 percent of the cost of vehicle 12.75 percent of the cost of the vehicle
than five years
More than five years but not more than7.50 percent of the cost of vehicle 12.50 percent of the cost of the vehicle
six years
More than six years but not more than7.25 percent of the cost of vehicle 12.25 percent of the cost of the vehicle
seven years
More than seven years but not more 7.00 percent of the cost of vehicle 12.00 percent of the cost of the vehicle
than eight years
More than eight years but not more 6.75 percent of the cost of vehicle 11.75 percent of the cost of the vehicle
than nine years
More than nine years but not more 6.50 percent of the cost of vehicle 11.50 percent of the cost of the vehicle
than ten years
More than ten years but not more 6.25 percent of the cost of vehicle 11.25 percent of the cost of the vehicle
than eleven years
More than eleven years 6.00 percent of the cost of vehicle 11.00 percent of the cost of the vehicle
As per III schedule, the rate of tax payable by the purchaser of the vehicle is unambiguously given. For instance, if a vehicle is more than one year
but not more than two years and the cost of the vehicle is not exceeding Rs.10 lakhs, 8.50% of the cost of the vehicle is the life tax. If the cost of
the vehicle is exceeding Rs. 10 lakhs, 13.50% of the cost of the vehicle is mentioned as life tax. In the case of the Petitioner, admittedly, the vehicle
is more than 11 years old. Therefore, the vehicle is falling under Part-II, Sl. No. 12 wherein 6% of the cost of the vehicle is the life tax. To make it
clear an explanation is also given under the schedule which reads as under:
Explanation.-For the purpose of this Schedule, ""cost of vehicle"" means the cost of vehicle at the time of purchase, in such manner as may be
prescribed.
Therefore, a mere reading of the III schedule as well as the Explanation given there under shows that the Petitioner is required to pay 6% of the
cost of the vehicle by taking into account the first purchase of the vehicle by the Government and not the second purchase of the vehicle by the
Petitioner.
However, the learned Counsel for the Petitioner submitted that the Petitioner was not supplied with the purchasing bill of the vehicle. Hence, it is
open to the Petitioner to ask for the purchase bill from whom the vehicle was purchased so as to determine the rate of tax. The apprehension is
unless and other wise the Petitioner is issued with the purchase bill he would not be able to calculate the rate of tax. Therefore, it is open to the
Petitioner to approach the Respondents for getting the purchase bill so as to find out the original value of the vehicle purchased by him. The invoice
also should give the total cost of the vehicle. It is for the Respondents either to provide a copy of the original purchase bill or the invoice, so that
the Petitioner will be in a position to find out the original cost of the vehicle purchased.
In view of the same, this writ petition is dismissed. No costs. Consequently, M.P. No. 1/ 2010 are also dismissed.