HYDERABAD: In a relief to transport vehicle owners, the High Court on Wednesday directed the state governments of Telangana and Andhra Pradesh to respect the decision taken by the Governor on June 1, 2014, with regard to levy of motor vehicle tax.
On June 1, the Governor of erstwhile state of AP passed an order, vide GO Ms No 43, stating that “the quarterly tax paid for any quarter up to March 31, 2015, in any of the successor states shall be deemed to have been paid
for both the successor states and thereafter new governments to decide.”
However, the Telangana Government on July 28 this year had issued a circular memo stating that all transport vehicles entering the state from AP shall be treated as other state vehicles and are liable to pay tax under the provisions of Telangana Motor Vehicles Taxation Act, 1963.
A division bench comprising Chief Justice Kalyan Jyoti Sengupta and Justice MS Ramachandra Rao gave the interim order while dealing with a petition by Tirumala Cabs seeking directions to both the state governments not to insist on payment of quarterly tax for its tourist vehicles.
The petitioner’s counsel wanted the court to declare as illegal the action of the transport department in once again collecting the tax for the quarter July 1, 2014, to Sept 30, 2014, from the petitioner in respect of all India tourist vehicles. The decision to collect quarterly tax once again was contrary to the said GO and Section 101 of the AP Reorganisation Act, 2014, he added.
The petitioner’s counsel also sought directions to both the governments either to refund the tax collected ‘illegally’ or to adjust the same for the next quarter, from Oct 1 to Dec 31, 2014, in respect of the petitioner’s vehicles.
After hearing the case, the bench, in its interim direction, said both the states must respect the decision taken on June 1 this year and that no official should act contrary to the decision.
While admitting the petition, the bench directed the respondents to file their counter affidavit in three weeks and a reply to it by the petitioner in another two weeks.
The bench made it clear that the tax already collected by both the states, if any, shall be subject to the result of the writ petition, and adjourned the case hearing by five weeks.
Meanwhile, another writ petition was filed in the High Court challenging the circular memo issued by the Telangana Government on July 28. Petitioner K Srinivas, a businessman of Vijayawada, submitted that the quarterly tax paid up to March 31, 2015, would be valid in both the states and tax cannot be levied once again during this period. He wanted the court to suspend operation of the impugned circular memo which stated that all transport vehicles entering into Telangana from AP are liable to pay tax.
TS memo questioned 7
Transport operator challenges Telangana Government’s memo stating that all transport vehicles entering the state from Andhra Pradesh shall be treated as other state vehicles and are liable to pay tax under the provisions of Telangana Motor Vehicles Taxation Act, 1963.