Kerala High Court
Deepak Mohandas vs State Of Kerala on 16 November, 2023
Author: Dinesh Kumar Singh
Bench: Dinesh Kumar Singh
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH
THURSDAY, THE 16TH DAY OF NOVEMBER 2023 / 25TH KARTHIKA, 1945
WP(C) NO. 18907 OF 2022
PETITIONER:
DEEPAK MOHANDAS,
AGED 46 YEARS
MANAGING DIRECTOR, M/S. WHITE FIELD DAIRY PVT. LTD. NO.
07 RCC 206 26, S G MUTT ROAD, CHAMARAJPET, BENGALURU,
KARNATAKA- 560 018.
BY ADVS.
V.V.NANDAGOPAL NAMBIAR
DHEERAJ KRISHNAN PEROT
CHITRA JOHNSON
RESPONDENTS:
1 STATE OF KERALA,
REPRESENTED BY ITS CHIEF SECRETARY, GOVERNMENT
SECRETARIAT, THIRUVANANTHAPURAM.
2 TRANSPORT COMMISSIONER,
STATE OF KERALA, 8TH FLOOR, B- BLOCK, CIVIL STATION,
KUDAPPANAKKUNNU, THIRUVANANTHAPURAM, PIN CODE 695 043.
3 MOTOR VEHICLE INSPECTOR PALAKKAD DISTRICT,
PIN 678 001.
4 MOTOR VEHICLE INSPECTOR,
PALAKKAD RTO ENFORCEMENT, PALAKKAD DISTRICT.
OTHER PRESENT:
P. SANTHOSH KUMAR-SPL.GP
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
16.11.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 18907 OF 2022
2
DINESH KUMAR SINGH, J.
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WP(C) NO. 18907 OF 2022
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Dated this the 16th day of November, 2023
JUDGMENT
1. The present writ petition has been filed impugning Ext.P4 Challan for Rs. 1,33,590/- for displaying some advertisements on petitioner's transport vehicle bearing registration No. KA01AM1431 having all India permit. The said vehicle is registered in the state of Karnataka and is used for carrying milk and milk products of M/s. White Field Dairy Pvt. Ltd. and they are running a milk dairy at Annamalai, Pollachi in Tamil Nadu State. The milk products are supplied in all (5) Southern States of India including the State of Kerala.
2. On 24.04.2022, when the said goods carrier vehicle reached Kozhikode Palakkad WP(C) NO. 18907 OF 2022 3 Highway, Kodathippadi, Mannarkkad, the 3rd respondent intercepted the vehicle and demanded Rs.1,33,590/- as advertisement fee for alleged violation of Rule 191 of Kerala Motor Vehicle Rules for exhibiting and displaying advertisement of M/s. White Field Dairy Pvt. Ltd. namely, 'Amrut Milk'.
3. Petitioner's vehicle is registered in the State of Karnataka and all India permit has been granted by the transport authority in Karnataka. The petitioner is also paying the fee, tax etc. in the State of Karnataka.
4. The Learned counsel for the petitioner submits that the transport authority in the State of Kerala does not have jurisdiction to levy advertisement fee on petitioner's vehicle which is registered in the State of Karnataka for displaying advertisement in respect of the products of M/s.White Field Dairy Pvt. Ltd. It is further WP(C) NO. 18907 OF 2022 4 submitted that, the petitioner's vehicle is being operated in five states including States of Kerala and if every state starts demanding the advertisement fee under the relevant provisions of the Rules made by the State, it would be impossible for all vehicles to operate in as much as the the fee would be very high and it would become infeasible to pay the advertisement fee and operate the vehicle.
5. The learned counsel for the petitioner further submitted that the operation of the provisions of Rule 191 of Kerala Motor Vehicle Rules is to be restricted only in respect of the vehicles which are registered in the State of Kerala and/or operating within the state of Kerala. Therefore, he submits that the impugned demand of advertisement fee in Ext.P4 for an amount of Rs.1,33,590/- is not only arbitrating but also WP(C) NO. 18907 OF 2022 5 without jurisdiction and liable to be quashed.
6. Sri. Santhosh Kumar P, learned Special Government Pleader however, submits that under Clause (xviii) of Subsection 1 of Section 96 of Motor Vehicles Act, 1988, a State Government is empowered to regulate the painting or marking of transport vehicles and the display of advertising matter thereon, and in particular prohibiting the painting or marking of transport vehicles in such colour or manner as to induce any person to believe that the vehicle is used for the transport of mails. He also submits that, in exercise of the powers granted to the State Government under Section 96 of the Motor Vehicles Act, 1988, the State of Kerala has framed the Kerala Motor Vehicles Rules, 1989. Rule 191 prescribes permission of advertisement or writing on vehicles and also provides for the payment of fee at the WP(C) NO. 18907 OF 2022 6 prescribed rate for advertisement or writing on vehicles.
7. It is therefore, submitted that the impugned levy of advertisement fee is in exercise of powers vested under Rule 191 of Kerala Motor Vehicles Rules. It is further submitted that it does not make any difference whether the vehicle is registered within the state of Kerala or not. If the vehicle is operating or passing through the State of Kerala, the State Government is authorised/ empowered to levy and demand the advertisement fee from such vehicles. Therefore, it is submitted that the writ petition is liable to be dismissed as the impugned levy is within the power vested in the authority under Rule 191 of the Kerala Motor Vehicles Rules.
8. The facts are not disputed as noted above. There is no dispute that the State WP(C) NO. 18907 OF 2022 7 Government is empowered to frame Rules under Clause (xviii) of Subsection 1 of Section 96 of Motor Vehicles Act, 1988, and in exercise of the said power of Rule 191 of the Kerala Motor Vehicles Rules, 1989 has been framed which reads as under:
"191. Prohibition of advertisement or writing on vehicles:‐ [(1) No advertising device, figure or writing shall be exhibited on any transport vehicle, save as may be specified by the State or Regional Transport Authority by general or specific order and on payment of fee of (Rs.5) per 100 centimetre square for an advertisement in writing and (Rs.10) per 100 centimetre square for an electronic advertisement for a period of (one month) or part thereof for each vehicle:] Provided that in respect of vehicles of the State Transport Undertaking the Government may allow such advertisements subject to the conditions that they may lay WP(C) NO. 18907 OF 2022 8 down from time to time in this regards.
[Provided further that the maximum period for advertisement at a time shall be one year and can be renewed for subsequent years or part thereof] (2) The matter of each advertisement intended to be exhibited on the vehicle shall be approved by the State or Regional Transport Authority.
(3) After the period for which permission is sanctioned for exhibiting advertisement on vehicle, order issued for exhibiting advertisement shall be surrendered before the State Transport Authority or Regional Transport Authority concerned.
(4) If the matter of advertisement exhibited on the vehicle is changed before the period for which sanction is accorded to exhibit the advertisement, fees prescribed as per sub‐rule (1) shall be paid for the new advertisement.
Explanation:‐ For the purpose of this rule, electronic advertisement means an WP(C) NO. 18907 OF 2022 9 advertisement exhibited on a rolling screen, digital screen or electronic screen or advertisement exhibited on vehicles using any other devices which is not a part of the body of the vehicle.]
9. The question which requires to be considered in the present case is whether the State Government is empowered to levy advertisement fee on a vehicle which is not registered within such a state and also has all India permit and which operates on all India basis including southern states. The vehicle which has all India permit is free to operate all across the country and may pass through various state on a simple day. If every state is given power to levy and demand advertisement fee, as in the present case, it would have cascading effect and it would be very difficult to operate the vehicle, on all India basis. The power to levy advertisement fee has to be limited WP(C) NO. 18907 OF 2022 10 keeping in mind freedom of trade and commerce as provided under Articles 301-304 of the Constitution of India.
10. Thus, the State Government will have jurisdiction to impose levy of advertisement fee on vehicles which are registered within the state or operate only within the state. If the vehicle is not registered within the state and operate on all India basis then the state, where the vehicle is registered, could be empowered to impose the advertisement fee, if such rule has been framed by the State Government.
11. In view thereof, I find that on the vehicle of the petitioner which is registered in State of Karnataka and has all India permit to operate and passes through the state of Kerala cannot be levied with the advertisement fee by the authority in State of Kerala.
WP(C) NO. 18907 OF 2022 11
12. Thus, I find the levy of advertisement fee in Ext. P4 without jurisdiction and the same is hereby quashed and the writ petition stands allowed.
Sd/-
DINESH KUMAR SINGH JUDGE rpr WP(C) NO. 18907 OF 2022 12 APPENDIX OF WP(C) 18907/2022 PETITIONER'S EXHIBITS Exhibit P1 TRUE COPY OF THE CERTIFICATE OF REGISTRATION ISSUED FROM KARNATAKA STATE.
Exhibit P2 THE AUTHORIZATION CERTIFICATE OF NATIONAL PERMIT (GOODS) IN FORM NO. 47 ISSUED FROM THE TRANSPORT DEPARTMENT, KARNATAKA. Exhibit P3 TRUE COPY OF THE FITNESS CERTIFICATE ISSUED FROM RTO, TRANSPORT DEPARTMENT.
Exhibit P4 TRUE COPY OF THE CHALLAN DATED 24.04.2022 ISSUED BY THE 3RD RESPONDENT.
Exhibit P5 TRUE COPY OF THE RELEVANT PORTION OF G.O(P) NO. 62/2020/TRANS DATED 25.11.2020.