SC Grants Interim Relief: Restriction on Border Tax imposed by Tamil Nadu, Kerala, and Karnataka for Petitioner's bus with valid All India Tourist Bus Permit [Read Order]
SC Grants Interim Relief – Restriction on Border Tax imposed by Tamil Nadu – Kerala – Karnataka for Petitioners – bus with valid All India Tourist Bus Permit – TAXSCAN
SC Grants Interim Relief – Restriction on Border Tax imposed by Tamil Nadu – Kerala – Karnataka for Petitioners – bus with valid All India Tourist Bus Permit – TAXSCAN
The Supreme Court bench of Justice Surya Kant and Justice Dipankar Datta has granted interim relief to the petitioner by ruling not to levy border tax on the vehicles owned by the petitioners for which a valid All India Tourist Bus permit has been granted.
The bench restrained the states of Kerala, Tamil Nadu and Karnataka from levying border tax on the petitioner’s vehicles. Also instructed to tag the other writ petition of Muthyala Sunil Kumar having similar facts.
The border tax is levied in the form of passenger tax/border tax/check post tax etc.from the tourist vehicles plying under All India Tourist Vehicles (Permit) Rules, 2023. The Central Government has noticed that some states/UTs and in motive of promoting tourism, has directed the such states/UTs not to levy the border tax.
The Central Government is empowered under sub Section (9) & (14) of Section 88 of Motor Vehicles Act, 1988 to make rules for the purpose of promoting tourism, grant permits in respect of tourist vehicles valid for the whole India.
According to the notification issued by the Ministry of Road Transport and Highways dated 4th August 2023, “The All-India Tourist Vehicles (Permit) Rules, 2023 were made with the objective of seamless and hassle-free movements of tourist vehicles across the country on the strength of permit issued after making the payment of fee prescribed in the table referred to Rule 3 of All India Tourist Vehicles (Permit) Rules, 2023 without levying any other kind of taxes/fees. It is pertinent to mention here that the permit fee collected under Rule 3 is disbursed among the States and UTS in the following month as per the formula prescribed in sub-rule (2) of Rule 3 of All India Tourist Vehicles (Permit) Rules, 2023. In view of above facts, all States and UTS are advised not to levy any other kind of taxes/fees from the tourist vehicles plying under the strength of valid permit issued under All India Tourist Vehicles (Permit) Rules, 2023 across the country.”
Presently, the Supreme Court has provided temporary assistance to tourist bus operators by directing states not to levy border taxes.
To Read the full text of the Order CLICK HERE
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