IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE T.R.RAMACHANDRAN NAIR FRIDAY, THE 22ND FEBRUARY 2008 / 3RD PHALGUNA 1929 OP.No. 38617 of 2002(V) ----------------------- PETITIONER: ------------------- THE PRINCIPAL, SANJOS PUBLIC SCHOOL CHOODANCHERRY, NARIANGANAM P.O., KOTTAYAM. BY ADV. SRI.MATHEW JOHN (K) SRI.BABY THOMAS RESPONDENTS: ---------------------- 1. THE DISTRICT COLLECTOR, KOTTAYAM. 2. THE JOINT REGIONAL TRANSPORT OFFICER, PALA. 3. THE SECRETARY, REGIONAL TRANSPORT AUTHORITY, KOTTAYAM. BY GOVT. PLEADER SRI.V.TEK CHAND. THIS ORIGINAL PETITION HAVING BEEN FINALLY HEARD ON 22/02/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ORDER ON CMP.NO.65117/2002 IN OP.NO.38617/2002-V. DISMISSED. 22.2.2008. Sd/- T.R.RAMACHANDRAN NAIR, JUDGE. APPENDIX PETITIONER'S EXHIBITS:- P1: COPY OF THE AFFILIATION DTD.14.3.2000. P2: COPY OF THE APPLICATION FOR TAX DEDUCTION BY THE PETITIONER DTD.18.2.1997. P3: COPY OF THE CIRCULAR DTD.14.6.1996. P4: COPY OF THE PERMIT DTD.7.4.1997. P5: COPY OF THE FITNESS CERTIFICATE DTD.7.1.1999. P6: COPY OF THE MEMO DTD.17.6.2002 ISSUED BY THE 2ND RESPONDENT. RESPONDENTS' EXHIBITS:- NIL. ( true copy ) P.A. TO JUDGE. kvs/- T.R.RAMACHANDRAN NAIR, J. ========================= OP.No.38617 of 2002-V. ========================= Dated this the 22nd day of February, 2008. J U D G M E N T The petitioner is a Principal of Sanjos Public School which is an educational institution being run by a Trust. The school purchased a LMV Omni Bus on 11.3.1997 exclusively for the purpose of conveyance of the students and staff attached to the school. Ext.P2 is an application dated 18.2.1997 submitted to the first respondent by the Principal for getting the vehicle registered as an educational institution bus as contemplated under Section 2 (11) of the Motor Vehicles Act, 1988. The apparent contention is that the liability to pay tax will be lesser in such cases. Ext.P4 is the permit issued to the said vehicle and in Ext.P4 it is clearly mentioned in Col.7 that it is for the conveyance of the staff and students of Sanjos Public School. The petitioner has been remitting tax as applicable to educational institution bus. OP.No.38617 of 2002-V. -: 2 :- 2. But by Ext.P6 the Joint Transport Officer, Palai demanded payment of Rs.1,18,926/- describing it as difference of tax at PSV rate from 1.10.1997 to 30.9.2002. The same is under challenge in this original petition. 3. The learned counsel for the petitioner submitted that it is evident from the permit that it is for the conveyance of the staff and students of the school and it cannot be termed as a private service vehicle. It is therefore pointed out that a concession as applicable to an educational institution operated vehicle is applicable to it and under no circumstances the vehicle can be assessed to tax as a private service vehicle as now attempted to in Ext.P6. Sec.26 of the Motor Vehicles Act provides for escape assessment. It provides for issuance of notice prior to the steps taken for the assessment provided therein. Going by the said provisions of the act, the registered owner or the person having possession over the control of the vehicle is entitled to be issued a notice in the matter and the authority is bound to make proper enquiry also. In view of the above mandatory provisions, I find OP.No.38617 of 2002-V. -: 3 :- that Ext.P6 is in total violation of the statutory scheme. Ext.P6 is actually a demand notice and it does not refer to any order by which the escaped tax was assessed. Therefore Ext.P6 shall be treated as a notice and the petitioner will be entitled to file objection to the same within a period of six weeks from the date of receipt of a copy of this judgment. The 2nd respondent will afford an opportunity for personal hearing also to the petitioner or his authorised representative. Needless to say that the authorities will pass orders on merits after considering the various aspects as noted above. In view of the interim order passed by this Court in CMP.No.65117/2002 the respondents shall not take steps to recover any amount covered by Ext.P6 pending the adjudication of the matter. The orders if any shall be passed within three months from the date of receipt of the objections from the petitioner. The Original Petition is allowed of as above. No costs. T.R.RAMACHANDRAN NAIR, JUDGE. kvs/-