Madrasreserved High Court · 2025

W.P. Nos.750 of 2024, 36441 and 36444 of 2023Cab Vehicles pursuant to the Tamil Nadu Motor Vehicles Taxation (Amendment Act), 1974 (Act No.30 of 2023), pending framing/ amendment of Rules in regard to the same and publication of details of implementation and modalities.PRAYER in W.P.No.36444 of 2023: Writ Petition filed under Article 226 of the Constitution of India, praying to issue a Writ of Mandamus directing the respondents to accept the quarterly tax payment in respect of the petitioners vehicles pending framing / amendment of Rules and publication, consequent to the Tamil Nadu Motor Vehicles Taxation (Amendment Act), 1974 (Act No.30 of 2023) For Petitioner : Mr.S.Sarath Kumarin W.P.No.750 of 2024in W.P.Nos.36441 : Mr.G.Rajagopalanand 36444 of 2023 Senior Advocate for M/s.G.R.AssociatesFor Respondents : Mr.J.Ravindranin all W.P.'s Additional Advocate General assisted by Mr.E.Sundaram Government AdvocateCOMMON ORDERThe writ petitions are filed for a writ of mandamus to forbear respondents from insisting on payment of life time tax on Motor Vehicles, pending amendment of rules providing for levy of lifetime tax on Old Maxi Cabs and to direct acceptance of the quarterly tax payment until rules are framed for the purpose of levy and collection of lifetime tax on motor vehicles pursuant to the 3/16 https://www.mhc.tn.gov.in/judis W.P. Nos.750 of 2024, 36441 and 36444 of 2023amendment to the Tamil Nadu Motor Vehicles Taxation Act, 1974 vide Act No.30 of 2023 (hereinafter referred to as “Amendment Act”)1.1. The common question that arises for consideration in these writ petitions is with regard to the legality of implementation of the Amendment Act whereby lifetime tax has been introduced for old maxi cabs without framing of corresponding rules providing for levy and collection of lifetime tax on old maxi cabs. 1.2. Since a pure question of law has been raised in these writ petitions, this Court does not propose to deal with the facts in detail. Petitioners in all these writ petitions are maxi cab service providers. Petitioners had discharged motor vehicles tax on quarterly basis on the old maxi cabs until the introduction of the Amendment Act. 1.3. State of Tamil Nadu introduced lifetime tax on maxi cabs including old maxi cabs vide Amendment Act. Amendment Act amended Section 4(1-A) and corresponding Schedule to the Act thereby providing for levy of lifetime tax. 1.4. Attempts by petitioners to pay quarterly tax for the last quarter of 2023 was refused/ not accepted in view of the Amendment Act providing for levy of lifetime tax even on old maxi cab vehicles. Portal for payment of tax under the Tamil Nadu Motor Vehicle Taxation Act, 1974 (hereinafter referred to as “Taxation Act”) did not enable/permit payment of quarterly tax. Aggrieved by 4/16 https://www.mhc.tn.gov.in/judis W.P. Nos.750 of 2024, 36441 and 36444 of 2023the above amendment to the Act and insistence on payment of lifetime tax consequent thereto, without introducing corresponding rules, petitioners had filed these writ petitions.2. Case of the Petitioners: i) That Taxation Act contemplates payment of tax in accordance with the Rules prescribed in terms of Sections 4, 8, 15 and 18 of the Taxation Act. A reading of the above provision viz., Sections 4, 8 and 15 of the Taxation Act, which provides for levy of tax, time and manner of payment of tax, it would be clear that it contemplate rules being framed in respect thereof. ii) That Section 4 of the Taxation Act provides that tax shall be levied in the manner “prescribed”. Section 2(5-A) of the Taxation Act, provides that 'prescribed' means prescribed by Rules made under this Act. When law provides for performance of act in a prescribed manner as prescribed, in the absence of such prescription, the said Act cannot be enforced.iii) That there is no rule consequent to the amendment to Section 4(1-A) of the Taxation Act and corresponding amendment to the Schedules including substitution of the Eighth Schedule to the Taxation Act, which provides for the manner and collection of lifetime tax particularly in relation to old maxi cabs. 5/16 https://www.mhc.tn.gov.in/judis W.P. Nos.750 of 2024, 36441 and 36444 of 2023iv) That collection of tax without framing rules with regard thereto as provided under the Amendment Act, would render collection arbitrary and without authority of law, thereby offending Article 265 of the Constitution of India.v) That levy of lifetime tax during the course of the assessment period/ year marking a shift from payment of quarterly/ periodical taxes to lifetime tax is impermissible, and would, offend Article 14 of the Constitution of India in view of the huge financial implication and absence of adequate/ sufficient notice to the taxpayers. vi) That the shift to the lifetime tax regime without a mechanism providing for set off of the quarterly taxes already paid is arbitrary and violative of Article 14 of the Constitution of India. 3. Case of the Respondents: i) That the prescription of manner of collection of lifetime tax was made under Tamil Nadu Motor Vehicle Taxation Rules, 1974. Thus, insistence of new rule to be prescribed for the collection of lifetime tax for old maxi cab vehicles, may not be sustainable.ii) That the writ petitioner would admit that Government is empowered to levy tax and increase the tax under the Motor Vehicle Act up to 50%, thus there 6/16 https://www.mhc.tn.gov.in/judis W.P. Nos.750 of 2024, 36441 and 36444 of 2023can be no impediment for the Government to levy tax under the Amended Act. It is submitted that, in any view rule cannot override the act.iii) That the Hon'ble Apex Court in thecase of State of Tamil Nadu vs. M. Krishnappan & another, reported in (2005) 4 SCC 53, has observed that levy of life time tax is based on rational and reasonable classification founded on an intelligible differentia having a rational relation to the object of the impugned levy and there is no violation of Article 14 of Constitution of India, Hence, the ground is unsustainable.iv) That Article 265 of the Constitution of India says that "No tax shall be levied or collected except by authority of law", and Article 13(3) of the Constitution of India says "law includes any ordinance, order, by-law, rule, regulation, notification, customs or usage having in the territory of India, the force of law". It is submitted that, the Government of Tamil Nadu have issued gazette notification amending the Tamil Nadu Motor Vehicles Taxation Act vide Act No.30 of 2023 and tax was collected under the Schedules prescribed in the Act. Hence, contention of violation of Article 265 of the Constitution of India is without basis. v) That Government letter (Ms).No.578 Home (Tr-1) Department dated 16.11.2023 directed the Transport Commissioner to issue executive order with regard to extension of time, difference of tax and time limit to opt for payment 7/16 https://www.mhc.tn.gov.in/judis W.P. Nos.750 of 2024, 36441 and 36444 of 2023life time tax in respect of old tourist maxi cab vehicles. The writ petitioner has not given any option as to payment of life time tax either in lump sum or in four equal instalments. It is further submitted that, the writ petitioner has filed the present writ petition in individual capacity but the prayer is made collectively which is unsustainable in law. Further it is submitted that there is no violation of Articles 14 and 19(1)(g) of the Constitution of India. vi) That grant of four equal instalments by itself would be sufficient notice to the tax payers which was published in all daily News papers and across Medias. 4. Having considered the submissions of both sides this Court is of the view that the present writ petition lacks merit for the following reasons: a) The prayer in these batch of writ petitions is to refrain the authorities from enforcing a provision of law on the premise that corresponding rules have not been famed and thus unworkable. Importantly, there is no challenge to the levy/provision as such. It is trite law that mandamus cannot be issued to refrain from enforcing a provision of law. In this regard, it may be relevant to refer to the judgment of the Hon'ble Supreme Court in the case of Narinder Chand Hem Raj and Others v. Lt. Governor, Administrator, Union Territory, Himachal Pradesh & Others reported in (1971) 2 SCC 7478/16 https://www.mhc.tn.gov.in/judis W.P. Nos.750 of 2024, 36441 and 36444 of 2023“7. ..... No Court can give a direction to a Government to refrain from enforcing a provision of law. Under these circumstances, we must hold that the relief asked for by the appellant cannot be granted.”b) Secondly, this Court also finds that the grounds raised are made on a gross misconception of the scheme of Taxation Act. The thrust of the petitioner's argument is that pursuant to amendment of Section 4(1-A) vide Amendment Act 30 of 2023, payment of motor vehicle tax allowed/permitted by way of quarterly payment was converted into a life time tax even with regard to old maxi cabs. However, there is no time line prescribed for discharging life time tax in respect of old motor vehicles. Reliance was placed by Petitioner on Section 4 of the Act to suggest that tax levied under this Act shall be paid in the manner “prescribed”. The expression “prescribed” would mean prescribed by rules. However, no rules have been framed prescribing/ fixing the period within which tax has to be paid in respect of life time tax for old maxi cabs, the charge must thus fail. In this regard reliance was placed on the following judgments: i) BSNL and another v. BPL Mobile Cellular Ltd and others, (2008) 13 SCC 597 ii) Manohar Lal Chopra v. Rai Bahadur Rao Raja Seth Hiralal, 1961 SCC OnLine SC 17iii) Hindustan Ideal Insurance Co. Ltd. v. LIC of India, 1962 SCC OnLine SC 69 9/16 https://www.mhc.tn.gov.in/judis W.P. Nos.750 of 2024, 36441 and 36444 of 2023iv) Maharashtra SRTC v. Babu Goverdhan Regular Motor Service and others, (1969) 2 SCC 7464.1. To appreciate the above contention it may be relevant to extract Section 4 of Tamil Nadu Motor Vehicles Taxation Act, 1974, which reads as under:“4. (1) The tax levied under this Act shall, subject to the provisions of sub-section (1-A), be paid in the manner prescribed by the registered owner or by any other person having possession or control of the motor vehicle, at his choice, either quarterly, half-yearly or annually, on a licence to be taken out by him for that quarter, half-year or year, as the case may be.(1-A) Notwithstanding anything contained in sub-section (1);-(a) in respect of the motor vehicles specified in Part – I of the Second Schedule, in Part – I of the Third Schedule, in Part – I of the Fifth Schedule, in Part – I of the Seventh Schedule, in Part-I of the Eighth Schedule and in Part – I of the Tenth Schedule, at the time of its registration, a life time tax shall be paid at the rates specified therein, on a licence to be taken out for the life time of such vehicles;(b) in respect of the old motor vehicles specified in Part – II of the Second Schedule, in Part – II of the Third Schedule, in Part – II of the Fifth Schedule, in Part – II of the Seventh Schedule, in Part – II of the Eighth Schedule and in Part – II of the Tenth Schedule, a life time tax shall be paid at the rates specified therein on a licence to be taken out for the life time of such vehicles;“(bb) in respect of motor vehicles specified in Part-II of the Second Schedule, the tax shall be paid either annually at the rates specified in the First Schedule or for the life time of such vehicles at the rates specified in Part-II if the Second Schedule on a licence to be taken out for such vehicles for that year or for the life time, as the case may be;”.“(bbb) in respect of goods carriages not exceeding 3000 Kgs. in weight laden specified in Part I of the Fifth Schedule, the tax shall be paid for the life time at the rates specified in the said part I and in respect of goods carriages not exceeding 3000 Kgs. in weight laden specified in Part II of the said Schedule, the tax shall be paid either annually at the rate payable or for the life time at the rate specified in the said Part II, as the case may be;”.“(c) in respect of motor vehicles specified in class 9 of the First Schedule, the tax shall be paid annually at the rates specified therein on a licence to be taken out for that year.10/16 https://www.mhc.tn.gov.in/judis W.P. Nos.750 of 2024, 36441 and 36444 of 2023Explanation:- The tax for a half-yearly licence shall not exceed twice and the tax for an annual licence shall not exceed four times the tax for a quarterly licence. The Government may, by notification, grant, subject to such condition as may be specified, a suitable rebate in case of half-yearly, annual and life-time licences.(d) in respect of construction equipment vehicles specified in the First Schedule, the tax shall be paid either annually at the rates specified therein or for the life time of such vehicles at the rates specified in Part I and of such old vehicles in Part II of the Tenth Schedule, on a licence to be taken out for such vehicles for that year or for the life time, as the case may be;”4.2. Admittedly, levy of life time tax is in terms of Section 4(1-A) of Taxation Act. Learned Senior advocate for petitioners would submit Section 4(1-A) mandates prescription by rules as to the period within which tax has to be paid by looking to sub section (1) to Section 4 of the Taxation Act. This in my view is misplaced. Sub section (1) to Section 4 and sub section (1-A) to Section 4 of Taxation Act, deal with distinct subject matters. Moreover, sub section (1) to Section 4 expressly provides that it shall be “subject to provisions of sub section (1-A) to Section 4 of the Taxation Act”. On the other hand sub-section (1-A) to Section 4 of the Taxation Act, provides that “notwithstanding anything contained in sub section (1) to Section 4 of the Taxation Act”. There is nothing in sub section (1-A) to Section 4 of the Taxation Act which would require prescription of rules in respect of subject covered/provided thereon. It is only sub section (1) to Section 4 of Taxation Act which provides that tax levied under this Act shall be paid in the manner prescribed. The above requirement of a prescription by rules with regard to payment of taxes under sub-section (1) to 11/16 https://www.mhc.tn.gov.in/judis W.P. Nos.750 of 2024, 36441 and 36444 of 2023Section 4 cannot be read into sub section (1-A) to Section 4 of the Taxation Act.4.3. Thirdly, while under Section 8 and 15 of the Taxation Act, period for payment of taxes on quarterly and half yearly is required to be “prescribed” and as a matter of fact has also been prescribed in terms thereof under the Tamil Nadu Motor Vehicles Taxation Rules, in particular Rule 7. There is no corresponding rule providing for the period within which lifetime tax ought to be paid. The petitioner proceeds on the premise that while Section 8 and 15 of the Taxation Act provides for the machinery to enforce payment of quarterly, half yearly and Annual taxes. However no corresponding provision/mechanism is provided for payment of lifetime tax, thus same is unenforceable. The above submission is ill-conceived inasmuch as while payment of quarterly or half yearly is periodical, life time tax is a solitary payment or payment on one occassion and therefore, question of periodical payment as provided under Section 8 of the Taxation Act may not arise. 5. Further, a reading of sub section (1-A) to Section 4 of the Taxation Act, would show that life time tax in respect of vehicles falling under Part II of the Eigth Schedule to the Taxation Act, shall be paid at the rates specified therein “on a licence to be taken out for the life time of such 12/16 https://www.mhc.tn.gov.in/judis W.P. Nos.750 of 2024, 36441 and 36444 of 2023vehicle”. The expression “on” employed in Section 4 (1-A) would indicate that it is “at the time of” i.e., at the time of taking license that lifetime tax ought to be paid whenever provided for. In this regard it may be relevant to refer to the following dictionary meaning attributed to the expression “on”: i) Advanced Law Lexicon :“Upon; as soon as; near to; along; along side of; adjacent to; contiguous to; at the time of; following upon; in; during; at or in contact with upper surface of a thing.”ii) Merriam-Webster's Advanced Learner's English Dictionary:“On.....7- used to indicate the time when something happened or will happen”iii) Stroud's Judicial Dictionary of Words and Phrases:“ON. Though "on", or "upon" a date or any event may, prima facie, have an inclusive meaning, yet either word will mean "before", "simultaneously with", or "after", according to the context of the subject matter. See UPON. "I can find no distinction ever drawn between tenancies commencing 'at' a particular time, or 'on' a particular day, or 'from' the same day. 'At', 'on', 'from' or 'on and from', are, for this purpose, equivalent expressions. Any distinction between them for such a purpose is far too subtle for practical use" 6. From a reading of the Amendment act and rules it appears to me that with the introduction of life time tax on old maxi cabs, petitioners become liable from the next quarter following introduction of Amendment Act 30 of 2023 dated 06.11.2023 i.e, from 01.01.2024 onwards to pay lifetime tax. The executive instruction dated 16.11.2023 which provides for payment of life time tax in four 13/16 https://www.mhc.tn.gov.in/judis W.P. Nos.750 of 2024, 36441 and 36444 of 2023instalments is more in the nature of a beneficial clarification/instruction whereby the rigours of the act are watered/diluted but for this letter/executive instruction the liability to pay would get fastened on the petitioner as and when a license for life time tax is required to be obtained.7. In view of the above, I find that there is no merit and contentions are rejected. If the payment of lifetime tax in instalments is still available. It is open to petitioners to discharge on the basis of the said scheme/circular. Writ petitions stand disposed of in light of the above observations. No costs. Consequently, connected miscellaneous petitions are closed. 01.08.2025 Speaking (or) Non Speaking OrderIndex : Yes/ NoNeutral Citation: Yes/Nospp/mka14/16 https://www.mhc.tn.gov.in/judis W.P. Nos.750 of 2024, 36441 and 36444 of 2023To:1.The Principal Secretary to Government, Home (Transport-I) Department, Secretariat, Chennai-600 009.2.The Transport Commissioner, State Transport Authority, Ezhilagam, Chepauk, Chennai-600 005.3.Joint Transport Commissioner (Rules), State Transport Authority, Ezhilagam, Chepauk, Chennai-600 005.4.The Regional Transport Officer, Regional Transport Office, Chennai South, Thiruvanmiyur, Chennai-600 041.15/16 https://www.mhc.tn.gov.in/judis W.P. Nos.750 of 2024, 36441 and 36444 of 2023MOHAMMED SHAFFIQ, J.spp/mkaW.P. Nos.750 of 2024, 36441 and 36444 of 202301.08.202516/16