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Kerala high court upholds MVD tax amendment

The court said that the owners could use the vehicles for one month in the state and then conform to the MVD stipulations.

Kochi: The Kerala High Court on Tuesday upheld the 2018 amendment to the Motor Vehicles Act 3 (6) which stipulates that the vehicles registered in other states like Puducherry if used in the state for more than 30 days should remit one-fifteenth of the lifetime tax to the state exchequer.

The motor vehicles department has been taking strict action against vehicles registered in other states with a lower tariff, citing it as tax evasion. Vehicles owners had filed 88 separate petitions against this.

Regional transport officers had issued notices to owners saying why the registration of their vehicles should not be cancelled if one-time vehicle tax for 15 years is not paid. The warning went to those used in Kerala continuously after registering in other states.

The court said that the owners could use the vehicles for one month in the state and then conform to the MVD stipulations.

The court also said that the MVD officials have no right to insist that the vehicles be registered in the state and 15 years' tax paid as lifetime tax.

It should not be insisted that the vehicle should be registered as per the address in the identity card. The court also made it clear that the MVD officials in the state have no authority to cancel the registration. Vehicle owners should be heard before taking any action.

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