IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR WEDNESDAY, THE 2ND JANUARY 2008 / 12TH POUSHA 1929 OP.No. 24590 of 2001(B) ----------------------- PETITIONER: ------------ M/S. SHAAN FINANCE (PVT.) LTD., 6TH FLOOR, 611, BARTON CENTRE, 84, M.G. ROAD, BANGALORE 560 001 REP. BY ITS RECOVERY MANAGER, MADHUSOODHANAN NAIR. BY ADV. SRI.G.HARIHARAN RESPONDENTS: ------------- 1. THE VILLAGE OFFICER, ERNAKULAM VILLAGE, ERNAKULAM. 2. TAHSILDAR (RR), ERNAKULAM. 3. REGIONAL TRANSPORT OFFICER, ALAPPUZHA. 4. P.A. KHALID, PATTAMARAVALAPPIL HOUSE, KUNNUMPURAM, FORT KOCHI, ERNAKULAM DIST. R1 TO R3 BY GOVERNMENT PLEADER SMT. SMITHA SUKUMAR THIS ORIGINAL PETITION HAVING BEEN FINALLY HEARD ON 02/01/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: 2 ORDER ON CMP 40290 OF 2001 IN OP 24590 OF 2001 DISMISSED 2.1.2008 SD/-C.N.RAMACHANDRAN NAIR, JUDGE. APPENDIX PETITIONER'S EXHIBITS: EXT.P1 TRUE COPY OF THE INTIMATION GIVEN TO AN ASST. MVI ATTACHED TO JOINT RTO, MATTANCHERRY, ON 21.5.2001 GIVING DETAILS OF GARRAGING OF THE VEHICLE NO. KLB 2995 EXT.P2 TRUE COPY OF THE FORM G INTIMATION DATED 16.9.98 ISSUED BY THE PETITIONER. EXT.P3 TRUE COPY OF THE REPORT DATED 2.9.98 SENT BY THE RTO, ERNAKULAM TO JOINT RTO, MATTANCHERRY. EXT.P4 TRUE COPY OF THE DEMAND NOTICE UNDER SECTION 7 OF THE RR ACT BY THE 2ND RESPONDENT THROUGH THE FIRST RESPONDENT DATED 19.7.2001 RESPONDENTS' EXHIBITS: NIL. TRUE COPY P.S. TO JUDGE. C.N. RAMACHANDRAN NAIR, J. -------------------------------------------- O.P. NO. 24590 OF 2001 -------------------------------------------- Dated this the 2nd day of January, 2008 JUDGMENT Petitioner is challenging recovery proceedings for recovery of arrears of motor vehicle tax due in respect of a stage carriage bearing registration No. KLB 2995. The demand is for seven quarters that is from 1.1.1998 to 30.6.1998 and from 1.4.1999 to 30.6.2000. Petitioner was the financier for the vehicle and petitioner admittedly repossessed the vehicle on 20.5.1998. The vehicle obviously was in arrears of motor vehicle tax as on the date of repossession. Even though petitioner applied for exemption from payment of tax through G forms filed, exemption applies only from 1.7.1998 onwards which appears to be granted by the RTO. Since petitioner was in possession and control of the vehicle, recovery could be made from the petitioner as provided under Section 3 of the Motor Vehicle Taxation Act. Even though petitioner has stated that vehicle was returned to the hirer, there is no evidence about the same. At least after repossessing the vehicle from the hirer petitioner should have ensured that tax is paid and vehicle 2 released after clearing the arrears of tax. This was also not done by the petitioner. However, department has no case that petitioner was in control and possession of the vehicle from 1.4.1999 onwards. In the circumstances, recovery could be made only for the period when the petitioner was in possession and control of the vehicle. O.P. is therefore partly allowed quashing the demand of tax against the petitioner for the period from 1.4.1999 to 30.6.2000. However, petitioner is liable to pay tax for the period from 1.1.1998 to 30.6.1998. If the amount is not paid, recovery can be made from the petitioner. It is for the respondents to trace the vehicle and registered owner and recover the motor vehicle tax for the later periods. (C.N. RAMACHANDRAN NAIR) Judge 3