Court stays MV tax collection in Telangana

TS government told to accept indemnity bond for the tax demanded till the court pronounces comprehensive interim relief order

April 02, 2015 12:00 am | Updated 05:51 am IST - HYDERABAD:

Transport operators, who knocked on the doors of the Hyderabad High Court seeking stay on the decision of the Telangana government to levy Motor Vehicle Tax (MV) from all carriers coming into the State from Andhra Pradesh and elsewhere, earned a temporary reprieve from the court.

Taking note of the petitions by three different operators, the court directed the State government to accept their indemnity bond for the tax demanded from the authorities till it pronounces comprehensive interim relief order on Tuesday, April 7, and asked the Telangana government to file a counter affidavit.

Further, the court ruled that the vehicles of these operators shall not be alienated.

In protest against the decision of the Telangana government to implement the tax levy with effect from the midnight of Wednesday, several bus operators from Andhra Pradesh had suspended their services and three of them approached the court. Some lorry owners associations are also likely to approach the courts against the tax.

The AP Reorganisation Act 2014 empowers the States of Andhra Pradesh and Telangana to impose vehicle tax. The TRS government had decided in June last year to impose the vehicle tax. However, the Governor who is common to the two States through an order had deferred it till March 31.

Preliminary reports from the 15 State border check points suggest that the Telangana government managed to collect Rs. 1 crore on day one. There were complaints of inordinate delay at some of the check posts due to logistical problems including insufficient staff.

A Division Bench of Hyderabad High Court comprising Chief Justice Kalyanjyothi Sen Gupta and Justice P. V. Sanjay Kumar on Wednesday admitted cases filed by several owners and operators of commercial vehicles.

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