Kerala MV Taxation Act | Goods Vehicles Fitted With Construction Equipment Can Be Taxed As Construction Equipment Vehicles: High Court
The Kerala High Court has made it clear that vehicles registered as good carriage vehicles, but fitted with construction equipment and used for construction purposes can be levied with the motor vehicle tax applicable to construction equipment vehicles. “It is further the definition as provided under clause 10(iii) of the schedule enumerated any other equipment vehicle which is exclusively...
The Kerala High Court has made it clear that vehicles registered as good carriage vehicles, but fitted with construction equipment and used for construction purposes can be levied with the motor vehicle tax applicable to construction equipment vehicles.
“It is further the definition as provided under clause 10(iii) of the schedule enumerated any other equipment vehicle which is exclusively used for construction purposes is to be considered as construction equipment liable for the purposes of levy of the tax for such vehicles. Considering the use of the petitioner's vehicles only for the construction purposes, I am of the view that petitioner's vehicles are liable to be taxed at the rate prescribed for construction equipment vehicles and not for the goods carriage vehicles.”, Justice Dinesh Kumar Singh observed.
The Court passed the above order in a plea filed by the petitioner who was the owner of two goods carriage vehicles.
He had approached the Court against the impugned orders and tax demand notices, directing the imposition of an 8 per cent tax on his vehicles under the Kerala Motor Vehicles Taxation Act,1976 which was the tax rate applicable on construction equipment vehicles.
Petitioner submitted that he had paid the tax applicable for goods carriage vehicles and was not liable to pay the higher tax that was prescribed for construction equipment vehicles.
State alleged that the petitioner had installed a concrete mixer on the chassis of his vehicles and was using it for construction purposes.
The Counsels for the petitioner, Advocates Joji George Jacob, Baby Kuriakose, Raajesh S.Subrahmanian, V.R.Rajesh submitted that construction equipment vehicles were used only at construction sites and cannot ply on the road.
It was submitted that the vehicles of the petitioner were registered as goods carriage vehicles and cannot be imposed with motor vehicle tax at the rate prescribed for construction equipment vehicles.
Senior Government Pleader Thushara James submitted that it was irrelevant whether the vehicle was plying on the road or used in the construction sites.
It was argued that if the vehicle was used for construction purposes and not as a good carriage vehicle, then it has to be imposed with the tax rate applicable to construction equipment vehicles.
Upon hearing the arguments, the Court noted that as per schedule under clause 10(iii) of the Kerala Motor Vehicles Taxation Act, vehicles fitted with construction equipment and used exclusively for construction purposes may be imposed with tax applicable for such construction equipment vehicles.
It noted that Annexure 1 of the Act provided the rate for imposition of levy of motor vehicle tax at the rate of 8 per cent on construction equipment vehicles. Accordingly, the writ petition was dismissed.
Citation: 2023 LiveLaw (Ker) 706
Case title: Satheesh Kumar S. v Transport Commissioner
Case number: WP(C) NO. 3697 OF 2022