The Kerala High Court has held that the goods carriage vehicles cannot be classified as construction equipment vehicles for demanding one-time tax.
The bench of Justice A.K.Jayasankaran Nambiar and Justice Easwaran S. has observed that in matters of taxation, the revenue cannot take an inconsistent approach and must, as far as possible, maintain uniformity in classification for the purposes of tax. In the appeal before us, the facts would reveal that the respondent had classified the vehicles as goods carriage vehicles for the purposes of levy of motor vehicle tax as per the Schedule to the Kerala Motor Vehicles Taxation Act. It is significant that even in the Schedule to the Kerala Motor Vehicles Taxation Act, there is a separate entry that deals with construction equipment vehicles.
The appellant/assessee is the registered owner of four goods carriage vehicles. The vehicles in question were granted a registration certificate by classifying them as goods carriage vehicles and collecting tax under the Schedule to the Kerala Motor Vehicles Taxation Act, 1976, as applicable to ‘goods carriage vehicles’.
In the Writ Petition, the appellant was aggrieved by the demand made by the taxing authorities for payment of one- time tax in respect of the vehicles by classifying them as ‘construction equipment vehicles’ for the purposes of Kerala Motor Vehicles Taxation Act, 1976.
The appellant submitted before the Single Judge that as the vehicles had been registered as goods carriage vehicles, they could not be classified under a different head for the purposes of demanding one-time tax under the second provision to Section 3(1) of the Kerala Motor Vehicles Taxation Act.
The Single Judge decided the Writ Petition against the appellant by following a judgment of another learned Single Judge in WP(C).No.3697 of 2022, which had been affirmed by a Division Bench.
The appellant contended that the requirement of consistency in taxation obliges the respondent to adopt a uniform approach in the matter of taxation, and therefore, so long as the respondent had accepted the classification of the vehicle as a goods carriage vehicle for the purposes of levy of motor vehicle tax under the Schedule to the Motor Vehicles Taxation Act, they could not change the classification for the purposes of levy of one-time tax.
The department contended that the levy of one time tax in respect of the vehicles was based on a circular issued by the Transport Commissioner, which clarifies that goods carriage vehicles, which are used as construction vehicles must pay one-time tax as contemplated under Kerala Motor Vehicles Taxation Act.
The court held that during the pendency of the Writ Appeal, the appellant has continued to make the payment of motor vehicle tax under the Schedule at the rate applicable to goods carriage vehicles, and this arrangement shall continue for as long as the vehicles are not altered by the appellant.
Case Details
Case Title: Managing Partner Versus Joint Regional Transport Officer
Case No.: WA NO. 2129 OF 2024
Date: 11/03/2025
Counsel For Petitioner: Adv K.V.Gopinathan Nair
Counsel For Respondent: Govt. Pleader V.K.Shamsudheen
