Kerala HC directive to allow BH vehicle registration for central, PSU staff

The court directed the transport authorities to register the petitioners’ vehicles under the BH series and charge taxes as per the provisions of the Kerala Motor Vehicle Taxation Act 1976.
Kerala High Court.
Kerala High Court.(File Photo | A Sanesh, EPS)
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KOCHI: The Kerala High Court has held that the state government is free to levy lax in respect of Bharat Series (BH-series) non-transport vehicles at the rate prescribed under their respective legislation.

The court issued the order on a batch of petitions filed by employees of the Central Government and Central government undertakings, including banks, against the non-registration of their new vehicles under the BH series in the state by the state transport authorities.

The court directed the transport authorities to register the petitioners’ vehicles under the BH series and charge taxes as per the provisions of the Kerala Motor Vehicle Taxation Act 1976.

It also held that sub-rule (2) of Rule 51B of the Central Motor Vehicle Rules prescribing the rate of tax in respect of BH series non-transport vehicles is constitutionally unenforceable as it is beyond the legislative competence of the Centre.

Therefore, the States are not bound to implement the rate of tax as prescribed in subrule (2) of Rule 51B of the Central Motor Vehicle (Twentieth Amendment) Rules 2021 for vehicles registered under the BH series.

The court noted that the Central government may lay down the principles by enacting a law or by subordinate legislation for imposing taxes. However, the taxes on motor vehicles are the exclusive domain of states under Article 246, read with Entry 57 of List II of the Seventh Schedule.

The registration facility under the BH series is available to defence personnel, employees of Central government/state government/Central or state public sector undertakings, and private sector companies/ organisations that have their offices in four or more sates/Union territories.

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