Daijiworld Media Network-Bengaluru (RJP)

Bengaluru, Mar 11: Karnataka High Court on Thursday, March 10 said that Non-Karnataka registered vehicles do not have to pay lifetime tax as demanded by transport authority.

The High Court declared the Karnataka motor vehicle taxation (amendment) act, 2014 unconstitutional which allowed the collection of lifetime tax on vehicles registered outside Karnataka. The High Court also quashed all the demand notices issued to owners of several such vehicles to pay the tax by the transport department.

Several vehicles bearing the non-Karnataka numbers were seized by the transport department for non-payment of life time tax after they remained in the state beyond 30 days.

Non-KA registration vehicle owners had approached the high court requesting that the court should direct the transport department not to collect lifetime tax as they have been paid in other states. It also said the harassment of vehicle owners should also stop as the tax was illegal and unreasonable.

Justice Anand Byrareddy pronounced the orders on a batch of pleas. He declared the 2014 Act unconstitutional.

Justice Byrareddy observed in his judgment that 'Lifetime tax that is levied at the point of registration of a vehicle as per the KMVT Act cannot be levied on a vehicle that is already registered, merely on a presumption that a vehicle registered outside Karnataka has remained in the state for a period exceeding 30 days.'

The court said the basis of the government’s decision and explanation given for the collection of lifetime tax are unconstitutional and ultra vires.