Transport Dept Must Allow Vehicle Owner to Deposit MV Tax and Seek Penalty Waiver Before Taking Coercive Action: Orissa HC [Read Order]

In a recent ruling, the Orissa High Court held that the Transport Department must permit a vehicle owner to deposit outstanding motor vehicle tax and seek waiver of penalties before taking any coercive steps, and that such requests should be considered in accordance with law.

Biranchi Narayan Kar, the petitioner, filed a writ petition before the Orissa High Court challenging the levy of Motor Vehicle Tax and additional Motor Vehicle Tax in respect of his vehicle bearing registration number OR-02-AV-2382.

The arrears for the period from 1 October 2015 to 31 December 2025 were shown on the web portal of the Transport Department without calling for any reply or explanation from him.

The petitioner stated that the tax for the said period could not be paid due to financial difficulties. He approached the High Court seeking permission to deposit the outstanding Motor Vehicle Tax and additional Motor Vehicle Tax and to file a reply seeking waiver of penalties as provided under Section 13 of the Odisha Motor Vehicle Taxation Act, 1975.

The petitioner’s counsel argued that the arrears and penalties were uploaded on the web portal without following due process and without allowing the petitioner to explain his case. They argued that the petitioner was willing to clear the tax dues and only sought an opportunity to seek a waiver of penalties in accordance with the law.

The Transport Department’s counsel argued that the petitioner had directly challenged the entries reflected in the web portal. They also argued that no formal demand notice had been served on the petitioner till date. The State submitted that since the petitioner was agreeable to depositing the arrears of tax and filing a reply for waiver of penalties, the same could be permitted.

Justice Dr. Sanjeeb K. Panigrahi observed that the petitioner was willing to deposit the outstanding Motor Vehicle Tax and additional Motor Vehicle Tax and to submit a reply before the competent authority seeking waiver of penalties. The court explained that it was not expressing any opinion on the merits of the petitioner’s claim regarding the levy of penalties at this stage.

The court pointed out that once the petitioner deposits the outstanding tax and files a reply, the authority concerned is required to consider the same within a reasonable time. The court also observed that payment of the outstanding tax should be accepted by the Transport Department and that the petitioner’s application for issuance of permit and fitness certificate should be considered in accordance with the law.

The court disposed of the writ petition by permitting the petitioner to deposit the outstanding Motor Vehicle Tax and additional Motor Vehicle Tax within four weeks. The petitioner was also permitted to file a reply seeking waiver of penalties, which the authority was directed to consider within four weeks thereafter. The writ petition was accordingly disposed of.

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