Hyderabad: In a set back to the Telangana state government, the Hyderabad High Court on Wednesday suspended implementation of a memo issued to levy tax on all transport vehicles entering the state from Andhra Pradesh.
A Division Bench comprising Chief Justice Kalyan Jyoti Sengupta and Justice M.S. Ramachandra Rao was dealing with a petition by Tirumala Cabs seeking direction to both the state governments not to insist on payment of quarterly tax for its tourist vehicles.
He said that on June 1, 2014, 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.”
The petitioner submitted that 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 Motor Vehicles Taxation Act, 1963.
He urged the court to declare the action of the transport department in collecting the tax once again for the quarter ending July 1, 2014, to September 30, 2014, from the petitioner in respect of all India tourist vehicles as illegal.
While admitting the petition, the Bench directed that both the states must respect the decision taken on June 1 this year and that no official should act contrary to the said decision.
Making it clear that the tax already collected by both the states, if any, shall abide by the result of the petition, the Bench directed the respondents to file their counter affidavit in three weeks and reply to it by the petitioner in another two weeks.
Elsewhere, another writ petition was filed in the High Court challenging the same memo by K. Srinivas, businessman of Vijayawada
