The Jammu and Kashmir High Court issued the notice to the Transportation Department on a plea challenging additional 9% token tax on Motor Vehicles when life-time tax was already paid in different states.
The petitioner, Zahoor Ahmad Bhat contended that the fresh circular issued by the Commissioner/Secretary Transport department was against the “purport” of the High Court’s April 29 judgment by virtue of which RTO Kashmir’s order regarding re-registration of the vehicles bought from outside J&K was quashed.
The April 29, 2021 division bench judgment of J&K High Court had said “where the life time tax has been levied and paid on a motor vehicle at the point of the registration of a vehicle, no further tax can be levied and demanded on the said vehicle on it being removed from one state to another.”
However, it said, that a motor vehicle registered in one state and, if kept for a period exceeding 12 months in another state, shall apply to the Registering Authority of the new state/UT for the assignment of the new registration mark and once the life time tax has been levied and paid on a motor vehicle at the point of the registration of a vehicle, no further tax can be levied and demanded on the vehicle, on it being removed from one state to another.
Mr. Faisal Qadiri, counsel for the petitioner contended that despite the above judgment and order, the respondents are demanding 9% token tax from the owners of the vehicles, who have applied for assignment of new registration mark in the Union Territory of J&K even though their vehicles are duly registered outside J&K and have already paid life time tax on those vehicles.
Mr. Aman Ali, learned counsel appearing for the Transport Department has filed a statement of facts. The same is taken on record. However, the said statement of facts falls short of indicating a provision under which the Transport Department can realize tax again on a motor vehicle on which a lifetime tax has already been paid in a different state.
The division bench headed by the Chief Justice Pankaj Mithal and Justice Sanjay Dhar issued the notice to Hirdesh Kumar, Commissioner Secretary to Government, Transport department; Pradeep Kumar, Transport Commissioner, and Manzoor Ahmad; in-charge Regional Transport Officer to explain under which provisions of law they are demanding token tax from the people having purchased their vehicles from outside of J&K.
The matter is listed on August 24, 2021 for the next date of hearing.
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