Taxing Officer, Kalahandi and Another vs Ajit Singh

This appeal by special leave is directed against the judgment of the High Court of Orissa quashing an order of the Regional Transport Officer, Kalahandi, imposing the penalty of Rs. 1500 u/s 12-A of the Bihar and Orissa Motor Vehicles Taxation Act, 1930 for not paying the tax for the month of January 1966 when the tax was due. The High Court was of the view that the penalty could not be imposed unless there was a finding of the Regional Transport Officer that the vehicle had actually been plied in January 1966. We are afraid that the conclusion of the High Court cannot be sustained in view of the provisions of the Bihar and Orissa Motor Vehicles Taxation Act, 1930. Section 6(2) of the Act requires that the tax shall be paid only by the person who keeps the motor vehicle for his use. What is necessary to be proved or to be found is that vehicle is kept for use and not that it is actually plied on the road. If any owner of a motor vehicle does not intend to use the vehicle for a temporary period he may intimate the Taxing officer under the provision of Section 9-A of the Act in which case he would not be liable for payment of tax for the relevant period if the conditions prescribed u/s 9-A of the Act are fulfilled. It was not the case of the owner of the motor vehicle that the vehicle was not kept for use and that intimation had been given to the Taxing Officer u/s 9-A of the Act. The owner of the vehicle was under an obligation to pay tax for January 1966. If he was under an obligation to pay the tax and had committed default in payment of tax Section 12-A would be immediately attracted and he could be liable to pay the prescribed penalty. The facts in the case are clear. The owner of the vehicle did not pay tax for January 1966 within the time prescribed though he paid tax (sic)r February and March 1966. He also did not intimate the Taxing Officer about any intended non-user of the vehicle in January 1966. He has, therefore, liable to pay the penalty prescribed u/s 12-A of the Act. As regards the quantum of penalty, since the tax due from the owner of the vehicle was only Rs. 250, the penalty to be imposed could only be Rs. 500 under the Act. The appeal of the Taxing Officer is, therefore, allowed to the extent of Rs. (sic)0 only.