Tata reduced capacity to evade tax: Minister

BHUBANESWAR: The State Government on Tuesday justified the action of the State Transport Authority (STA) directing the regional transport officers not to register Tata Magic IRIS, a small passenger carrier. Replying to a call-attention notice of Bhagirathi Badjena and two others on behalf of Minister of State for Commerce and Transport Sanjeeb Kumar Sahu, Higher Education Minister Badri Narayan Patra said that Tata company tried to evade tax by reducing the seating capacity from five to four. As per the March 17, 2010 certificate of the Automotive Research Association of India (ARAI), Tata Magic IRIS is a five-seater passenger vehicle. The model was approved by the transport commission on June 30 the same year. Meanwhile, Tata Motors has got a fresh ARAI certificate which said that the passenger carrier is a four-seater. The company has removed the seat to the driver’s left side exclusively to avoid higher registration fee. The enforcement squad of the State Government detected that the company has removed the front seat which can be fixed after the registration of the vehicle. The State will lose ` 20,300 towards one time tax and it has been estimated that the annual loss of the Government will be to the tune of ` 2 crore. On the recommendation of the enforcement squad of the Transport Department, the State Transport Authority has rejected Tata Magic IRIS from registration and this has been informed to all the RTOs in its December 15 circular. The Minister said that the State Government is competent to decide the seating capacity of a passenger vehicle as per the Central Motor Vehicle Act, 1988. This has been prescribed in the Orissa Motor Vehicle Rules, 1993.