G.M. DIVATE Vs. THE REGIONAL TRANSPORT OFFICER TAXATION AUTHORITY

JUDGEMENT

(1.) THE petitioner is said to be a partnership firm. The petitioner is said to have financed the purchase of a bus by the respondent No. 3 and the vehicle is said to have been hypothecated to secure the loan. The said transaction was said to have been duly endorsed in the Registration Certificate of the vehicle by the competent authorities. It transpires that there was a hypothecation created in favour of the fourth respondent as well, in respect of the same vehicle.

(2.) THE petitioner is said to have filed an appeal against the said order, which was dismissed. It is that which is under challenge in the present appeal.

(3.) IT is seen that Section 16 of the Karnataka Motor Vehicles Taxation Act, 1957 (Hereinafter referred to as the 'KMVT Act', for brevity) empowers the State Government to issue notification exempting or reducing prospectively or retrospectively the tax payable in respect of any class of motor vehicles or motor vehicles not used on the roads. It also empowers the State Government by notification to reduce the rate of tax payable in respect of any class of motor vehicles plying on route on routes specified in the notification, if in its opinion, it is necessary in the public interest so to do. The State Government has issued a notification in accordance with the said section in No. HD 95 TMT 77 (II), dated 11.09.1980 exempting the motor vehicles registered under the State of Karnataka and not intended to be used on the roads from payment of tax, subject to certain conditions. The notification is as under.