IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED:03.11.2008 CORAM: THE HON'BLE MR.A.K.GANGULY, THE CHIEF JUSTICE AND THE HON'BLE MR. JUSTICE P.JYOTHIMANI WRIT APPEAL NO.1194 of 2008 and M.P.No.1 of 2008. Lakshmi Vidhya Sangam rep. By its Secretary & Treasurer Ms.Shobhana Ramachandran Regd. Office:7-B, West Veli Street Madurai 625 001. .. Appellant/Petitioner vs. 1.The Regional Transport Officer Madurai (South) Madurai 625 010. 2.State Transport Authority rep. By its Joint Commissioner Chepauk, Chennai 600 005. .. Respondents/Respondents WA No.1194/2008: Writ Appeal is field under clause 15 of Letter Patent preferred this Hon'ble Court against the order dated 11.02.2008 passed in WP No.27990 of 2003 filed under Article 226 of the constitution of India for issuance of writ of Certiorari Mandamus calling for records of first respondent in Na.Ka.No.72088/E1/2002, dated 31.12.2002 and quash the same and also may direct the first respondent to receive the tax for the vehicles owned by the petitioner in accordance with the concession provided under item 8 (a) of the first schedule to the Tamil Nadu Motor Vehicles Taxation Act, 1974. https://hcservices.ecourts.gov.in/hcservices/ For appellant : Mr.S.Elambharathi For respondents: Mr.Raja Kalifulla Government Pleader .. JUDGEMENT P.JYOTHIMANI,J. The writ appeal is directed against the impugned order of the learned Judge on the writ side of this Court, by which the learned Judge, while dismissing the writ petition filed by the appellant, has directed the appellant to pay the differential rate of tax and penalty applicable to the private service vehicles within three months. 2. The appellant, Lakshmi Vidhya Sangam is stated to be a Society registered under the Tamil Nadu Societies Registration Act XXI of 1860 for certain activities including establishing and maintaining TV Sundaram Iyengar Elementary School, TV Sundaram Iyengar Higher Secondary School, TVS Lakshmi Matriculation Higher Secondary School and also colleges, universities, etc. The appellant has established four schools, viz., T.V.S.Lakshmi Matriculation Higher Secondary School, T.V.S. Higher Secondary School, Lakshmi School and T.V.S. Primary School. According to the appellant, all the said schools are governed by the appellant Society. In the said schools, nearly 5,500 students are studying and for the convenience of the students, it is stated that the appellant/petitioner has acquired 13 vehicles which are as follows: i. Vehicle No.TN 58/D-3339 ii. Vehicle No.TAU/3355 iii. Vehicle No.TAY/1299 iv. Vehicle No.TN 59/A-3456 v. Vehicle No.TN 59/A-4000 vi. Vehicle No.TAU/9819 vii. Vehicle No.TN 58/B-5969 viii. Vehicle No.TN 59/E-4939 ix. Vehicle No.TDA/2785 x. Vehicle No.TN 59/D-0321 xi. Vehicle No.TN 59/D-3229 xii. Vehicle No.TN 59/F-1517 xiii. Vehicle No.TN 58/A-4602 3. By a communication of the first respondent dated 31.12.2002, the appellant was directed to pay arrears of tax in respect of the above said vehicles amounting to Rs.4,95,955/- on https://hcservices.ecourts.gov.in/hcservices/ the basis of the objection raised by the Accountant General that the appellant is not entitled to the concessional rate under the Motor Vehicle taxation law. When the appellant attempted to pay quarterly tax for the vehicles, the first respondent refused to receive the tax on the ground that arrears of tax has to be paid first. In fact, the first respondent has withdrawn the concession granted to the appellant in respect of the payment of tax. It was, in those circumstances, the appellant filed the writ petition to set aside the proceedings of the first respondent dated 31.12.2002. 4. The learned Judge placing reliance on the definition, 'educational institution bus' as mentioned in section 2(11) of the Motor Vehicles Act, 1988, held that the educational institution must own the vehicle in order to claim the payment of tax as per Item 8(a) of First Schedule to the Tamil Nadu Motor Vehicles Taxation Act, 1974 which is a concessional rate. The rate of tax prescribed in Item 8(a) of First Schedule to the Act in respect of the vehicle owned by educational institutions (educational institution bus), at the time of registration, is Rs.500/- per quarter, while in respect of other transport vehicles, the rate of tax would be Rs.150/- per seat, per quarter. Finding that the said buses are standing in the name of the petitioner and not in the name of educational institutions, it was held by the learned Judge that the same cannot be treated as 'educational institution vehicles' and therefore, the petitioner is not entitled to claim concessional rate of tax in respect of those vehicles. In view of the same, the writ petition came to be dismissed. 5. It is the contention raised on behalf of the appellant that inasmuch as the appellant Society is the educational agency managing the said four schools and all the vehicles are used only for the purpose of those four schools for carrying teachers and students, they should be construed to be educational institution vehicles since the vehicles are not used for any other purpose. It is the further contention of the learned counsel for the appellant that the educational agency being the owner of the properties of the educational institutions which include the vehicles of the institutions also, no property or vehicle stands in the name of individual institution and it is, on that basis, the order of the learned Judge is assailed. 6. We are unable to agree with both the contentions raised by the learned counsel for the appellant. First of all, any tax law has to be construed strictly in accordance with its provisions. In the context of this case, when the appellant is claiming the benefit of payment of concessional tax as per Item 8(a) of First Schedule to the Tamil Nadu Motor Vehicles Taxation Act,1974, by which the concessional rate of tax is levied in respect of https://hcservices.ecourts.gov.in/hcservices/ educational institution vehicles, it is incumbent on the part of the appellant to prove that the vehicles in question are in fact coming within the definition of 'educational institution vehicles' under the Motor Vehicles Act,1988. 7. The Motor Vehicles Act, 1988 defines 'educational institution bus' in section 2(11) as follows: " 2(11) "educational institution bus" means an omnibus, which is owned by a college, school or other educational institution and used solely for the purpose of transporting students or staff of the educational institution in connection with any of its activities; A bare reading of the term, 'educational institution bus' makes it clear that not only such bus should be used solely for the purpose of transporting students or staff of the educational institution, but such bus must also be owned by a college, school or any other educational institution, which means that it is the institution which should be the owner of the bus and not the society. 8. Even under the Tamil Nadu Motor Vehicles Taxation Act, 1974, the term, 'registered owner' is defined under section 2(7) to mean a person in whose name a motor vehicle is registered or deemed to be registered under the Motor Vehicles Act. Further, the term, 'owner' is defined under section 2(30) of the Motor Vehicles Act, 1988 as follows: " 2(30) "owner" means a person in whose name a motor vehicle stands registered, and where such person is a minor, the guardian of such minor, and in relation to a motor vehicle which is the subject of a hire-purchase agreement, or an agreement of lease or an agreement of hypothecation, the person in possession of the vehicle under that agreement;" 9. It is also relevant to refer to another term, 'private service vehicle' as defined under section 2(33) of the Motor Vehicles Act,1988 which is as follows: " 2(33) "private service vehicle" means a motor vehicle constructed or adapted to carry more than six persons excluding the driver and ordinarily used by or on behalf of the owner of such vehicle for the purpose of carrying persons for, or in connection with, his trade or business otherwise than for hire or reward but does not include a motor vehicle used for public purposes; https://hcservices.ecourts.gov.in/hcservices/ 10. Inasmuch as section 66(1) of the Motor Vehicles Act,1988 makes it mandatory that any of the owners of the motor vehicle can use the vehicle as a transport vehicle only in accordance with the conditions of the permit granted or given or signed by the Regional or State Transport Authority or any other prescribed authority, the contention raised by the learned counsel for the appellant as if the institution cannot have any property or vehicle of its own has no basis. 11. The provisions of the Tamil Nadu Recognised Private Schools (Regulation) Act, 1973 are governing the functioning of private schools in the State of Tamil Nadu. A reading of various provisions of the above said Act makes it clear that private schools can own properties including movable properties. The term, ' private school' is defined under section 2(7) of the said Act as follows: " 2(7) "private school" means a pre-primary, primary, middle or high school or higher secondary school or teacher training institution imparting education or training, whether receiving grant from the Government or not, established and administered or maintained by any person or body of persons, and recognised by the competent authority under this Act but does not include a school or an institution. 12. A reading of various provisions especially sections 30, 31 and 33 of the Act are as follows: " 30. Educational agency to send list of properties:- The educational agency shall, on or before the prescribed date in each year, furnish to the competent authority a statement (with such particulars as may be prescribed) of every- (a) movable property of not less than such value as may be prescribed; and (b) immovable property of the private school." "31. Restriction on alienation of property of private school:- (1) Notwithstanding anything contained in any other law for the time being in force or in any deed, document or instrument having effect by virtue of such other law- (a) no property of a private school, except with the previous permission in writing of the competent authority, be transferred by way of sale, exchange, mortgage, charge, pledge, lease, gift or any other manner whatsoever; and https://hcservices.ecourts.gov.in/hcservices/ (b) if any such property is transferred without such permission, the transfer shall be null and void. (2) The competent authority may- (a) grant the permission under clause (a) of sub-section (1) if the transfer is made in furtherance of the purposes of the private school or of similar purposes approved by the competent authority, and the assets resulting from the transfer are to be wholly utilised in furtherance of the said purposes; and (b) when granting such permission, impose such conditions as it deems fit, to ensure that such assets are wholly utilised in furtherance of such purposes; but a contravention of any such condition shall not invalidate the transfer: Provided that the permission shall not be refused under this section unless the applicant has been given an opportunity of making his representations. Explanation: For the purpose of this section, 'property' means any- (a) movable property of not less than such value as may be prescribed; and (b) such immovable property as may be specified in the rules made in this behalf." 32. xxxxxx "33. Utilisation of funds and property of private school:- (1) All the moneys collected, grants received and other property held by or on behalf of a private school shall be utilised for the purposes for which they are intended, and shall be accounted for by the educational agency in such manner as may be prescribed. (2) A private school may invest or deposit its funds- (a) in the State Bank of India constituted under the State Bank of India Act, 1955 (Central Act XXIII of 1955); or (b) in a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (Central Act 38 of 1995); or (c) in any corresponding new bank as defined in the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (Central Act 5 of 1970) or Post Office Savings Bank; or (d) in any of the securities specified in section 20 of the Indian Trusts Act, 1882 (Central Act XI of 1882) ; or https://hcservices.ecourts.gov.in/hcservices/ (e) in such mode as may be prescribed." (Emphasis supplied) The above provisions make it very clear that the private schools can own properties of their own. Therefore, it is not correct for the appellant to state that the educational agency viz., the Society which controls the institutions can alone own the properties and not the individual institutions. In such view of the matter, it is clear that unless the vehicle belongs to the concerned educational institution, the concessional rate of tax granted under Item 8(a) of First Schedule to the Tamil Nadu Motor Vehicles Taxation Act,1974 cannot be claimed by the petitioner as a matter of right. 13. It was, only based on the above said legal position, the State Transport Authority, viz., the second respondent in the circular dated 13.3.2002, while confirming the view of the Accountant General, Chennai, that buses not owned by the educational institutions should not be granted concessional rate of tax, has correctly pointed out that the educational institution buses standing in the name of Trust, charitable institutions or any other institution, will not fall within the scope of taxation under Item 8(a) of First Schedule to the Tamil Nadu Motor Vehicles Taxation Act, 1974. Therefore, the order of the first respondent, viz., the Regional Transport Officer, Madurai South, dated 31.12.2002, which was challenged by the appellant in the writ petition does not suffer from any illegality. Further, the learned Judge on the writ side has, in detail, discussed the entire aspects of the matter to come to the conclusion, which in our view is perfectly correct, that the appellant is not entitled to the tax concession, and the same does not require any interference by us. In view of the same, the writ appeal stands dismissed and the order of the learned Judge on the writ Court made in W.P.27990 of 2003 dated 11.02.2008, is confirmed. No costs. Connected miscellaneous petition is closed. Sd/ Asst.Registrar /true copy/ Sub Asst.Registrar kh https://hcservices.ecourts.gov.in/hcservices/ To 1.The Regional Transport Officer Madurai (South) Madurai 625 010. 2.The Joint Commissioner State Transport Authority Chepauk, Chennai 600 005. +1cc to Govt. Pleader Sr 61101 +1cc to Mr.K.J.Rebello, Advocate Sr 60994 JSV (CO) km/10.11. W.A.No.1194 of 2008 https://hcservices.ecourts.gov.in/hcservices/