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HC bars Telangana, Andhra Pradesh from imposing life tax on outstation vehicles

‘We are of the view that the order was passed without having any force of law’

Hyderabad: The High Court has barred the AP and Telangana governments from imposing Life Taxes on outstation vehicles. The order was given on a writ petition filed by a vehicle owner who had temporarily visited Hyderabad.

A “one country, one tax” movement has been gathering steam after the TS RTA mandated outstation vehicles to pay new life taxes within a month of entering the state.

In its order on a writ petition between petitioner R. Armugam and TS, the HC stated, “It is not mentioned under what provision of law such life time tax can be imposed. It is an undisputed fact that the petitioner has got the vehicle registered in the state of Tamil Nadu. Obviously, all the requisite taxes must have been paid and deposited there.”

Life tax, as the name suggests, is meant to be a tax to be paid on purchase of a vehicle for its entire lifetime. However, due to no coordination between transport departments of different states, vehicle owners are required to pay life taxes in every state they shift to.

RTA officials claimed that there is a refund process in place although there is no co-ordination between the RTA of different states. And for vehicle owners who have lived in more than two states, the process is cumbersome and difficult, admitted authorities.

“We are of the view that the order was passed without having any force of law. Learned Government Pleader says that the provision must have been there in some other laws, which he is unable to tell us at the moment, but we think when such legal provision has not been reflected in the impugned order itself. On that ground, we set aside the impugned order,” read the order of the HC.

( Source : dc correspondent )
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