The Kerala High Court has eased the burden on taxpayers by permitting installment payments for motor vehicle tax arrears.
The case involved petitioner Sidharthan, a resident of Thrissur district, who sought relief from the Regional Transport Officer ( RTO ) regarding outstanding motor vehicle tax for his stage carriage bearing registration number KL-02-U-4839. The petitioner, represented by Saju J. Vallyara and Maria Angel appealed to the court for a manageable repayment plan.
The petitioner, aged 53, argued for the acceptance of arrears in tax payments spanning from April 1, 2023, to June 30, 2024, with the option of settling the debt through 10 monthly installments. The petitioner emphasised his willingness to fulfill the tax liability if provided with a feasible payment schedule.
The respondent revenue, the RTO, (Taxation Officer), Thrissur represented by Smt. Deepa Narayanan acknowledged the outstanding tax liability amounting to Rs.1,39,379. However, the respondent did not contest the petitioner’s request for installment payments, signaling a degree of cooperation from the government’s side.
The single bench of Dr. Justice Kauser Edappagath directed the petitioner to discharge the tax liability through six equal monthly installments, with the first installment due on or before June 1, 2024. The subsequent five installments are to be paid on the first day of each succeeding month.
By allowing installment payments, the judgment acknowledges the practical challenges faced by taxpayers while ensuring that tax obligations are eventually fulfilled.
The court also cautioned that failure to remit the first installment or any subsequent payments would empower the authorities to proceed against the petitioner under the Revenue Recovery Act.
In result, the Kerala High Court disposed of the Writ Petition filed by the petitioner with a direction to the petitioner to discharge the tax liability on the goods carriage vehicle in six equal monthly instalments.
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