The Court made this observation in two cases of similar nature wherein the petitioners had purchased a car from Madhya Pradesh and had applied for registration in the state of Kerala. The dispute arose when the petitioners paid the MV tax of 21% on the value in the purchase invoice value i.e. Rs.63,40,000. But the department did not accept this taxation and they insisted that the tax be paid on the value listed in the web portal for the state of Kerala i.e. Rs.79,99,999.
According to the petitioner, the motor vehicle tax payable in the instant case is 21% of the purchase value as shown in the invoice issued by M/s. Anand Cars (P) Ltd., Indore, Madhya Pradesh, from where the petitioner had purchased the car. The 1st proviso to Sec.2(e) of the Kerala Motor Vehicle Taxation Act, 1976, makes it clear that the discount/rebate given by the dealer to the registered owner shall not be deducted from the bill amount for computing the purchase value.
The 2nd proviso appended to Sec.2(e) of the Act further stipulates 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 the invoice, the purchase value shall be the value or 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 to levy customs duty and includes excise or customs duty levied on the purchase of a motor vehicle, as the case may be.
Justice Alexander Thomas, while disposing of the writ petition observed, “ In the instant case, it is beyond any dispute that the car has not been imported from a foreign country. So also, there is no dispute that the car has been obtained, otherwise than by purchase and the purchase value is not ascertainable on account of non-availability of the invoice, etc as envisaged in the 2nd proviso to Sec.2(e) of the Kerala Motor Vehicle Taxation Act, 1976. Therefore it has to proceed on the premise that the purchase value is as per the Ext.P-1 purchase invoice as issued by the local dealer in the State of Madhya Pradesh, from where the petitioner has purchased the car.”To Read the full text of the Judgment CLICK HERE