The Court, at the outset, accepted that while the government-run/supported, public transportation could to a large measure, withstand the perils of the pandemic, the privately run public transportation system could not bear the economic brunt of the circumstances.
However, it said that even though unprecedented situations warrant extraordinary actions, in the matter of taxation, the court must go strictly by the letter of law, while interpreting a statute.
In the instant case, the Court went through the relevant provisions of the the Kerala Motor Vehicles Taxation Act, 1976 and found as follows
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Section 3: The burden of tax under the Act is not necessarily on the use of the vehicle on the roads, but the liability falls even on vehicles kept ready for use on roads. Therefore, petitioners cannot claim any benefit for non-payment of tax merely on the ground of restrictions and regulations imposed due to the pandemic;
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Section 5: If previous intimation is given about the non-use of the vehicle for a minimum of one month in a quarter, it shall be deemed that the vehicle is not used or kept ready for use in the State. None of the petitioners claimed the benefit of section 5 for the periods in question;
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Section 22: The Government has the power, in public interest, to make an exemption or reduction in the rate of tax, either prospectively or retrospectively. Out of a period of 15 months within the pandemic, absolute or total exemption from tax was granted for 12 months. Therefore, it cannot be said that the Government had not considered the plight of the petitioners.
Source: Barandbench
