Law taxing out-of-State vehicles unconstitutional: High Court

Bangalore, 10/07/2007: Traffic Police in action: sticking chit to the vehicals parked in no parking area in Cubbon Park. Though there are no parking signal boards placed from one side of the park road from Press Club to High Court, many park their vehicals both the side which result in traffic jam on this narrow road. Photo: K_Gopinathan Bangalore

In a huge relief to owners of non-Karnataka registered private vehicles, the Karnataka High Court on Thursday declared as “unconstitutional” the new law that compelled them to pay lifetime tax if they use such vehicles in Karnataka beyond 30 days.

Justice Anand Byrareddy delivered the verdict while allowing petitions filed by Jagadev Biradar of Pune in Maharashtra and others from neighbouring States, who questioned actions of the State transport authorities in impounding their vehicles and demanding payment of lifetime tax as per the new law enacted in 2014.

With this order, the non-Karnataka registered vehicles can be used in the State for 12 months without paying lifetime tax in Karnataka but such vehicles will have to be re-registered in Karnataka along with requisite lifetime tax if such vehicles are used beyond 12 months.

“The Explanation-2 to Section 3 of Karnataka Motor Vehicles Taxation Act, 1957 as inserted in KMVT (Amendment) Act, 2014 is unconstitutional and ultra vires,” the court declared, while also quashing the notices issued to the petitioners by the Regional Transport Offices asking them to pay lifetime tax on their vehicles registered outside Karnataka.

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