- (1.) THE writ petition is filed praying for the relief of issuance of writ of certiorarified mandamus to call for the records of the 3rd respondent in respect of the order dated 2.12.1998 in proceedings in Na.Ka. C3/47401/98 and quash the same and consequentially direct the 3rd respondent to collect the annual tax payable by the 21 members of the petitioner Association mentioned in the affidavit in respect of the vehicles owned by them in their individual names under the category of "Indian-made vehicles owned by individual" under Class 7 of First Schedule of Tamil Nadu Motor Vehicles Taxation Act, 1974.
(2.) IT is the case of the petitioner that the petitioner is a Registered Society consisting of 21 members. All are owners of the driving schools situate in Dharmapuri District. The motor vehicles owned by the members of the Society stand in the name of the individual persons and they come under the category of "Class 7 of First Schedule" of the Tamil Nadu Motor Vehicles Taxation Act, 1974. The First Schedule attached to the Tamil Nadu Motor Vehicles Taxation Act, 1974 provides for mode of payment of road tax in respect of various types of vehicles. The vehicle used for learning driving by the members of the petitioner Association are owned by the owners themselves. They stand in their individual names. Hence the annual tax payable for the vehicle owned by the members of the petitioner Association comes under the category of "Indian-made vehicles owned by individual". In the year 1994, the Regional Transport Officers of some of the Districts in Tamil Nadu proposed to collect tax for the vehicles owned by individual owners of the various driving schools under other heads. A representation was given by various Driving School owners including the petitioner Association. The second respondent, by his letter dated 8.4.1994 issued a clarification to the Regional Transport Officers of Dharmapuri, Villupuram and Dindigul stating that the tax should be collected as per First Schedule under Class 7 of the Tamil Nadu Motor Vehicles Taxation Act, 1974, if the vehicles registered stand in the name of individual under the Category 7 of "Indian-made vehicles owned by individual" and not for "others" under the category of "others". Thereafter, for the vehicles used for driving school purpose which are registered in the name of individual persons, tax was collected only under the category of "Vehicles owned by individual". While that being so, by the impugned order dated 2.12.1998, the third respondent informed the members of the petitioner's association that the second respondent by communication dated 6.11.1998 has directed the vehicles owned by the owners of the driving school be registered in the name of the driving school and the tax should be paid under the category of "Indian-made vehicles owned by others". Therefore, the petitioner's Association has given a representation to the third respondent stating that the question of collection of taxes under the category of "Indian made vehicles owned by others" does not arise inasmuch as the vehicles are registered in the individual names and therefore, tax has to be collected only under the category of "Indian made vehicles owned by individual". Inspite of that, the respondent persisting the members of the petitioner's Association to have their individual vehicle registered in the name of Driving School. Hence the present writ petition with the prayer as stated above. The learned counsel appearing for the petitioner submitted that neither in the Motor Vehicles Act nor the rules made thereunder nor the Taxation Act, it is mandatory on the part of any person who is the owner of the Driving School to have the vehicle owned by the person registered in the Driving School name. For that purpose, he has taken the Court through Section 12 of the Motor Vehicles Act, Rule 24 of the Central Rules made under the Motor Vehicles Act and also Section 3of the Tamil Nadu Motor Vehicles Taxation Act. On the other hand, the learned Government Advocate, on instructions, submits that the light motor vehicles maintained by Driving Schools are fitted with dual control facility and that they are used exclusively for the purpose of imparting instructions to learners. As required under Rule 24(3)(V) of the Central Motor Vehicles Rules, 1989, they have to be registered only in the name of the Driving School. The tax in such cases has to be levied at Rs. 1300/- p.a. under Rule 7(b) of the First Schedule of the Tamil Nadu Motor Vehicles Act, 1974. The mis-classification of the light motor vehicle maintained by the Driving Schools under Rule 7(b) resulted in short collection of the tax. Hence, a clarification has been issued by the Transport Commissioner, Chennai in his letter dated 6.11.1998. The suggestions of the Government has been sought for and suggested that no separate classification in Tamil Nadu Motor Vehicles Taxation Act need be provided for Driving Schools. These vehicles may be registered in the name of the Driving Schools and tax may be collected under the classification of "others". This is the reason for mis-classification and collection of tax in other category. I have heard the learned counsel for the petitioner and perused the material on record. When the statute provides that tax has to be collected in accordance with the Schedule and the Schedule is so specific and in the absence of any other statutory provision that the owners of the Driving School has to register the vehicle owned by them for imparting training has to be registered in the name of the School itself and not in the name of the individual, the authorities under the Act, merely on surmises and conjuncture cannot direct the petitioner to have the vehicle registered in the name of the institution itself. If the authorities are of the view that there is a leakage of tax, it is for them to provide necessary measures to block the leak by amending the Act or the Schedule in accordance with the requirement. In the absence of any such amendment, the impugned demand notice cannot be legally sustained.
(3.) FOR the above reasons, the writ petition is allowed. No costs.;