THE STATE OF WEST BENGAL & ORS. versus MANI BHUSHAN KUMAR

Citation: [2011] 11 S.C.R. 793 · Decided: 11-10-2011 · Supreme Court of India · Bench: R.V. RAVEENDRAN · Disposal: Appeal(s) allowed

Judgment (excerpt)

[2011] 11 S.C.R. 793 
THE STATE OF WEST BENGAL & ORS. 
v. 
MANI BHUSHAN KUMAR 
(Civil Appeal No. 8528 of 2011) 
OCTOBER 11, 2011 
[R.V. RAVEENDRAN AND A.K. PATNAIK, JJ.] 
Motor Vehicles Act, 1988: ss.66, 88(1), (7) - Seizure of 
vehicle for want of valid permit - Temporary permit issued to 
A 
B 
the respondent by State Transport Authority, Bihar to ply stage 
C 
carriage vehicle for route Motihari in Bihar to Siliguri in West 
Bengal - Temporary permit not counter signed by the State 
Transport Authority, West Bengal - Seizure of vehicle by 
Motor Vehicle Department at Siliguri - Challenged - Held: 
The State of West Bengal and the State of Bihar had entered 
D 
into a reciprocal agreement in 1988 for issue of a certain 
number of permits, however, the State Transport Authority, 
Bihar had exceeded the quota of permits for the inter-state 
route and there was no concurrence in general or for a 
particular occasion for issue of the temporary permit in favour 
E 
of the respondent for the inter-state route - In the absence of 
counter-signature of the State Transport Al.(thority, West 
Bengal, on the temporary permit issued by the State 
Transport Authority (Bihar), the respondent had no valid 
permit for the part of the route inside the State of West Bengal 
F 
- The plying of the vehicle of the respondent in the Si/iguri 
region within the State of West Bengal was thus in 
contravention of s.66(1) of the Act which pro.vided that no 
owner of a vehicle shall use or permit use of the vehicle as a 
transport vehicle save in accordance with the conditions of a 
G 
permit granted or counter-signed by the Regional or State 
Transport Authority - The authorities, therefore, were well 
within their powers to detain and seize the vehicle of the 
respondent u/s. 207 of the Act for contravention of s. 66 of the 
said Act. 
793 
H 
794 
SUPREME COURT REPORTS 
[2011] 11 S.C.R. 
A 
West Bengal Motor Vehicles Tax Act, 1970: s.16(4) -
Tax and additional tax - Held: Under sub-sections (3) and (4) 
of s. 16 of the Act, power is vested in the Taxing Officer to 
decide whether tax in respect of the vehicle has been paid 
and if the same has not been paid, to recover the same from 
B sale of the vehicle, if necessary - On a writ petition by 
respondent, the High Court held that the tax in respect of the 
vehicle has been paid - High Court erred in holding so - The 
impugned order of the High Court is set aside and the 
authorities are directed to continue with the proceedings 
c against the respondent in accordance with s. 16 and other 
provisions of the Motor Vehicles Tax Act for determining and 
recovering the tax amount after giving all due opportunity to 
the respondent - In case the concerned authority holds that 
the respondent is liable for any amount of tax, the appellant 
0 would be entitled to encash the Bank Guarantee furnished by 
him and recover the tax amount - However, in the facts of the 
case, no penalty would be recover&d from the respondent 
because the State Transport Authority, Bihar had granted the 
temporary permit for the route upto Siliguri in West Bengal, 
in excess of the quota fixed between the two States and the 
E respondent had in fact applied to the State Transport 
Authority, West Bengal for counter-signature on the temporary 
permit - Motor Vehicles Act, 1988. 
On 2.9.2009, the State Transport Authority, Bihar 
F issued a temporary permit in favour of the respondent for 
plying a Stage Carriage Vehicle for the route Motihari in 
Bihar to Siliguri in West Bengal for the period of four 
months with effect from 1.9.2009. On 7 .9.2009, the 
respondent submitted an application to the Secretary, 
G State Transport Authority, West Bengal for counter 
signature on the temporary permit. On 8.9.2009, the 
respondent also deposited a sum of Rs.9180 towards tax 
and additional tax in respect of his vehicles for plying 
within the State of West Bengal. 
H 
STATE OF WEST BENGAL & ORS. v. MANI 
795 
BHUSHAN KUMAR 
On 8.10.2009, the vehicle of the respondent was 
A 
intercepted and seized on the ground that the permit 
produced by the driver of the vehicle was not counter 
signed by the State Transport Authority, West Bengal. A 
notice was issued to the respondent under Section 
16(4)(a) and (b) of the West Bengal Motor Vehicles Tax 
B 
Act, 1970 to produce the documents showing payment 
of tax and additional tax due for the vehicle and other 
necessary documents relating to the vehicle. 
The respondent filed a writ pe

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