Purchase value on invoice determines motor vehicle tax under Kerala law. Centralized software use ruled illegal.

The court held that motor vehicle tax should be calculated based on the purchase value shown in the invoice, as per the Kerala Motor Vehicle Taxation Act, 1976. The use of centralized software for tax calculation was deemed illegal, emphasizing that state law prevails over any conflicting methods. Respondents were ordered to accept the tax based on the invoice value and grant permanent registration to the petitioner's vehicle. The court reiterated this decision in a similar case, directing compliance with the state law for tax calculation and registration processes.

---

---

Issues Involved:
1. Determination of Motor Vehicle Tax based on the purchase value as per the invoice versus the local price of a similar vehicle.
2. Legality of using centralized software (Parivahan Seva) for tax calculation and vehicle registration.
3. Applicability of the Kerala Motor Vehicle Taxation Act, 1976, in determining the motor vehicle tax.

Issue-wise Detailed Analysis:

1. Determination of Motor Vehicle Tax:
- The petitioner purchased an Audi Q7 for Rs. 63,40,000 as per the invoice issued by a dealer in Madhya Pradesh. The petitioner contended that the motor vehicle tax should be 21% of the purchase value shown in the invoice.
- The respondents argued that the tax should be calculated based on the local price of a similar vehicle, which is Rs. 79,99,999, as per the 2nd proviso to Sec.2(2) of the Kerala Motor Vehicle Taxation Act, 1976.
- The court held that the tax should be calculated based on the purchase value shown in the invoice, as per Sec.2(e) of the Kerala Motor Vehicle Taxation Act, 1976, which defines "purchase value" as the value shown in the purchase invoice inclusive of VAT, GST, and other taxes.

2. Legality of Using Centralized Software for Tax Calculation:
- The respondents argued that the tax calculation and vehicle registration must be done through the centralized software "Parivahan Seva," which uses the value provided by the manufacturer.
- The court found this argument untenable, stating that it would amount to rewriting the provisions of the Kerala Motor Vehicle Taxation Act, 1976. The court emphasized that the state law takes precedence, and the purchase value as per the invoice should be the basis for tax calculation.

3. Applicability of the Kerala Motor Vehicle Taxation Act, 1976:
- The court reiterated that the Kerala Motor Vehicle Taxation Act, 1976, clearly defines the purchase value and the method of tax calculation. The respondents' reliance on the centralized software and the Union Government's letter was found to be in conflict with the state law.
- The court emphasized that any deviation from the state law would be illegal and ultra vires. The state law mandates that the tax should be 21% of the purchase value as shown in the invoice, and not based on the manufacturer's value in the software.

Judgment:
- The court ordered that the respondents must accept the motor vehicle tax based on 21% of the purchase value as shown in the invoice and grant permanent registration to the petitioner's vehicle.
- The court also addressed a similar case (WP(C).No.32404 of 2019) involving a demo car purchased from a dealer in Mumbai. The court applied the same legal principles and directed the respondents to accept the tax based on the invoice value and grant registration.

Conclusion:
The court concluded that the motor vehicle tax should be calculated based on the purchase value shown in the invoice, as per the Kerala Motor Vehicle Taxation Act, 1976. The use of centralized software for tax calculation cannot override the provisions of the state law. The respondents were directed to comply with the state law and process the registration accordingly.

---