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Jagadev Biradar and ors. v. State of Karnataka and ors. - (High Court of Karnataka) (10 Mar 2016)

Karnataka’s lifetime tax law on motor vehicles struck down

Motor Vehicles

Calling Karnataka Legislature’s manner of requiring registration of a vehicle kept in another State for more than 12 months “clumsy and ham handed”, Karnataka High Court struck down law purporting re-registration for long-staying out-of-State vehicles. The matter involved payment of tax when a vehicle is registered for plying on the roads. Since Karnataka required vehicles with non-Karnataka licence plates to register in the State if being used for more than a year, contrary to national law and legal precedent, the tax too would be payable again. Karnataka government had sought to collect taxes from out of state vehicles by amending the Karnataka Motor Vehicles Taxation Act, 1957 by adding an explanation that “motor vehicles registered outside the State…and which are in the State for a period exceeding thirty days…tax shall be levied”.

Relevant : Bolani Ores Ltd. v. State of Orissa MANU/SC/0313/1974 Mahesh C. Gandhi v. The Deputy Commissioner for Transport, Belgaum Division and Anr. MANU/KA/0338/2005


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