The Calcutta High Court directed the Motor vehicle taxing officer to consider the tax exemption claim made by the assessee under the West Bengal Vehicle Tax Act, 1979 on tractors used in Tea Garden which were not used on public roads.
Goodricke Group Limited, the petitioner is a tea company who owns a tea garden, namely, Kumargram Tea Garden. The petitioner uses tractors/trailers to carry men, materials, tools and tackles within the tea garden. These tractors/trailers, according to the petitioner, are never used on any public road.
The petitioner stated that they were entitled to exemption of motor vehicles tax under the provisions of Section 10(22) of the West Bengal Motor Vehicles Tax Act, 1979 and the notification bearing no.1780-WT dated 14th February 1992. The petitioner further stated that the petitioner had made a representation before the concerned authority but the representation remains unaddressed.
On behalf of the State, it was submitted that Section 10(22) of the West Bengal Motor Vehicle Act does not confer any authority to the petitioner to receive exemption mandatorily as claimed. The 1979 Act does not provide any mandatory exemption. Only in Section 21 thereof, an exemption can be granted at the discretion of the competent authority.
The Single judge bench Comprising Justice Arindam Mukherjee directed the Regional Transport Officer, Alipurduar, to consider the representation made by the petitioner on 14th October 2022 before the Taxing Officer, Department of Motor Vehicles, Alipurduar, after giving the petitioner a reasonable opportunity of hearing to demonstrate that the tractors/trailers against which exemption of motor vehicles tax are claimed are not used or do not play in the public road but are confined only within the tea garden area. It was held that the entire exercise shall be completed within a period of six months from the date.
In a similar issue in the case of Sankos Tea Garden vs State of West Bengal and Ors, 2023 TAXSCAN (HC) 312, the Court took the same view.
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