Showing posts with label Tax exemption cap on vehicles for disabled. Show all posts
Showing posts with label Tax exemption cap on vehicles for disabled. Show all posts

Monday, March 13, 2023

Madras HC- Motor Vehicle Tax Exemptions to disabled can not be subject to condition that it is driven by the disabled himself [Judgement Included]

Court: Madras High Court (Madurai Bench)

Bench: Hon`ble Ms. Justice P.T. ASHA

Case No: WP(MD).1480/2023

Case Title: Angappan Vs. The Secretary to the Government of Tamil Nadu 

Date of Order/Judgement:  13/03/2023

Brief:

One Mr. Angappan claiming to have 80% locomotor disability had approached the court after the Regional Transport Officer, Pudukottai had rejected his application for tax exemption. The officers had demanded production of the disability certificate and a certificate stating that the Angappan can drive the vehicle. They also sought for a certificate from the Retro Fitment Centre, which had adapted the vehicle. Though the certificates were produced, his application was rejected. The authorities however countered this claim by submitting that the tax exemption was available only for self driven vehicles. 

Clearing a misconception that persons with disabilities (PwD) would be exempted from paying tax for their motor vehicles only if they drive the vehicle, the Madurai Bench of the Madras High Court recently came to the rescue of Mr. Angappan, a person with 80% locomotor disability who, when he applied for tax exemption for registration of his car, was asked to produce a certificate that he could drive the car.

The court noted that the authorities had in fact misconstrued the provisions of the Government Order. The stand that tax exemption was available only for self driven vehicles was a misconception. Further, the court noted that in the present case, there were no major alterations as contemplated in the Act. The only alteration was for the easy ingress and egress of Angappan. Thus, the court held that Angappan was eligible for tax exemption and directed the authorities to grant the said exemption to him while alowing his petition. 

The Governmetnof Tamil Nadu Home (Transport -T) Department had passed a GO in December 1976 exempting persons with physical disabilities from paying tax for motor vehicles that are specifically designed or adapted for their use, provided that the said vehicles are used only by persons with disabilities. However, the purpose of the GO has been totally misconstrued by the authorities, the judge observed.

“They have understood the notification to be available only to motor vehicles, which are driven by the physically challenged persons themselves. This is an absolute misconception. The said notification is issued in tune with the definition of an ‘adapted vehicle’ as provided in Section 2 (1) of the Tamil Nadu Motor Vehicles Act. The only condition prescribed is that the vehicle should be ‘used’ by the person, for whose use the vehicle has been adapted. Nowhere does it state that it should be driven by the said person,” the judge clarified.

"Neither the definition under Section 2(1) nor Section 52 specifies that it is the person, for whose purpose, the adaption is made, who should ride the vehicle. On the contrary, the definition of adapted vehicle makes it clear that the vehicle should be used solely by or “for such person”.

Justice Asha thus opined that the State should ensure that such persons who are granted exemption enjoy the same and added as below:

“Where a rule or regulation purports to grant a right to a particular section of society, courts must use the rule of purposive interpretation to ensure that the object of beneficial legislation reaches the intended section of the society,” 

The government order, read along with Section 2 (1) and Section 52 of the Act, clearly spells out that a physically challenged person, who owns a vehicle and has adapted the vehicle for his or her use, is entitled to the tax exemption, the judge added and allowed the petition.

Read the order /Judgement dated 13 Mar 2023 below:

Thursday, June 23, 2016

Kerala HC: Tax Exemption on Vehicle for disabled is financial privilege different from a Right [Judgement Included]

Dear Colleagues,
A double bench of the Kerala High Court has ruled that a cap on tax exemption on purchase value of vehicles by persons with disabilities can not be termed as discriminatory. The division bench comprising of Justice Antony Dominic and Justice Dama Seshadri Naidu opined  that the exemption made by the Government in the instant case, was in the nature of concession to persons with disabilities. And this exemption being a part of financial incentive, the Government was well within its powers to impose suitable conditions.

Brief Brackground  of the case

The Government, had by a notification, G.O. (MS) No. 16/98/Tran., dated 31.03.1998, granted a tax exemption for certain motor vehicles, including the luxury cars, being purchased by differently abled persons. However by a subsequent amendment, the Government had imposed a limit to the cap of Rs.5,00,000/- ,on the value of such vehicles entitled to such tax exemption.

Appellant, a person with 100% disability and a wheel chair user purchased a car of a value exceeding Rs. 5,00,000/. He argued that his son was also disabled being mentally retarded, a bigger car of a value more than 5,00,000/- cap was required to manage the daily activities of the family. He contended that limiting the cap on value of vehicles entitled to tax exemption for use by disabled, violated Article 14 of the Constitution of India. 

His writ petition in this regard, before the single bench was dismissed. Aggrieved by the same, he approached the division bench in an appeal.  Dismissing the writ appeal, the division bench observed:- “Be it a classification of discrimination in terms of Article 14 of the Constitution, it applies vis-a-vis the right that has been constitutionally consecrated. In that context, legion are the precedents that the classification or discrimination shall pass the judicial muster as regards the reasonableness or non-arbitrariness.” 

Judgement

The bench opined, “In the present instance, it is only a concession the Government has conferred on physically challenged persons. It being a financial incentive, the Government is well within its powers to impose suitable conditions. In other words, a privilege being entirely different from a right, a Fundamental Right at that, we are of the opinion that the contention of the learned counsel as regards discrimination or unreasonableness does not apply.”