State loses battle over lifetime tax on vehicles registered outside Karnataka

The owners of non-Karnataka registered vehicles need not worry about the hassle of paying lifetime tax to use their vehicle in the State beyond 30 days.

The High Court of Karnataka dismissed an appeal filed by the State government, which had questioned a single judge’s March 10 verdict of striking down the law introduced in 2014.

The State had introduced the new law as an “explanation” of the Karnataka Motor Vehicles Taxation (Amendment) Act, 2014, which aimed at generating more revenue for the State exchequer.

A Division Bench, comprising Justice Jayant M. Patel and Justice B.V. Nagarathna, while upholding the single judge’s verdict held that the State’s law was not only contrary to the provisions of the Motor Vehicles Act, 1988, but also violative of Article 246(3) of the Constitution, as it is Parliament that has the power to amend the period mentioned in the MV Act and not the State legislature.

The Bench also noted that the High Court in 2005 had declared that lifetime tax is linked with registration of vehicles, and hence the State can’t levy lifetime tax on vehicles not registered in Karnataka.

legal battle over the new law

The legal battle over the new law was launched by several owners of non-Karnataka registered vehicles, who frequently visited the State. Following the new law, the State transport authorities had seized a large number of non-Karnataka registered vehicles, causing hardship to vehicle owners and their families.

Source: The Hindu 

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