The petitioner purchased a Mercedes Benz Car from the concerned dealer for an amount of Rs.66,57,777.20/- and remitted tax under the KVAT Act at the rate of 14.5% coming to a total of Rs.9,65,377.70 plus cess at the rate of 2% amounting to Rs.19,307.55/-, thus coming to a total figure of Rs.76,42,462/- (Rupees Seventy six lakhs forty two thousand four hundred and sixty two only).
2. The case of the petitioner is that, when the petitioner took the vehicle for registration, agreeing to satisfy the tax at the rate of 15% payable under the Kerala Motor Vehicle Taxation Act on the invoice price, excluding the element of VAT, the same was refused to be accepted and no registration was made, pointing out that the petitioner had to satisfy tax on the entire value, ie. Rs.76,42,462/-. This, according to the petitioner is contrary to the law declared by a Division Bench of this Court as per the decision reported in 2013 (3) KLT 945 (Fathima Shirin V.
W.P.(C) No.33407 of 2014 2
Joint Regional Transport Officer) and hence the writ petition.
3. Heard the learned Government Pleader as well.
4. Meaning of the term ‘purchase value’ as defined under Section 2(e) of the Kerala Motor Vehicles Taxation Act was explained by a Division Bench of this Court as per the decision reported in 2013 (3) KLT 945, holding that the same does not include VAT component, Customs duty etc. Subsequently, as per Section 7(e) of the Finance Act, 2014, the provision was amended, whereby definition of the term ‘purchase value’ under Section 2(e) of the Act now reads as follows:
“(e) “purchase value” means the value of the vehicle as shown in the purchase invoice and includes value added tax, cess and customs/excise duty chargeable on vehicles:
provided that the discount or rebate given by the dealer to the registered owner shall not be deducted from the bill amount for computing the purchase value;
provided further that where the purchase value of any vehicle including a vehicle imported from other countries or a vehicle acquired or obtained otherwise than by way of purchase is not ascertainable on account of non availability of invoice, the purchase value shall be the value of price of the vehicles of the same specifications which are already registered or available with the manufacturer or as fixed by the Customs and Central Excise Department for the purpose of levying customs duty and includes excise or customs duty levied on the purchase of motor vehicle, as the case may be.”
It is also stated that the said provision has been W.P.(C) No.33407 of 2014 3 incorporated from the date of introduction of ‘onetime tax’ from 01.04.2007. This being the position, the contention raised by the petitioner with reference to the judgment in 2013 (3) KLT 945 does not hold good at all.
5. It is stated from the part of the respondents that, the rate has also undergone a revision. However, this Court does not intend to go into that aspect, as it is for the registering authority to consider the appropriate rate and to have the tax amount realised from the petitioner, for causing registration of the vehicle.
With the above observation, interference is declined and the writ petition is dismissed.
P.R. RAMACHANDRA MENON, JUDGE sp