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Road Tax Demand Set Aside Due to Auction Terms Requiring Only Bid Amount and GST

Case Law Details

TaxGuru Citation
2026 taxguru.in 4104
Case Name
Jatinder Kumar Vs State of Haryana And Others (Punjab and Haryana High Court)
Date of Judgement/Order
Only available for paid members
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Jatinder Kumar Vs State of Haryana And Others (Punjab and Haryana High Court)

The case concerns a petition seeking issuance of a No Objection Certificate (NOC) for a vehicle purchased through a public auction conducted by the State authorities. The petitioner participated in an e-auction held on 03.04.2024 for a government-owned vehicle and was declared the highest bidder with a bid of ₹2,70,000. As per the auction terms, he was required to pay GST at 18% in addition to the bid amount, which he duly paid along with other required charges. A sale certificate was issued, and the vehicle was delivered to him along with its existing registration number.

The petitioner used the vehicle in the Union Territory of Chandigarh and later sought to register it there. For this purpose, he applied for an NOC from the Haryana authorities. However, the respondents demanded payment of road tax along with interest and penalty, asserting that the petitioner had failed to pay such tax within 30 days as required under Rule 33E of the Haryana Motor Vehicle Rules, 1993.

The petitioner contended that the auction terms required payment only of the bid amount and GST, both of which had been paid. He argued that the relevant notifications cited by the respondents were inapplicable, as he was not seeking registration in Haryana but merely an NOC for registration in another jurisdiction. He further submitted that the vehicle was delivered with its original registration number, and no requirement was imposed at the time of delivery to pay any additional charges for retaining or transferring the number.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 19,987

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