Orissa HC Stays Recovery Action as Taxpayer’s Objection to MV Tax Demand Was Still Pending

Banowarilal Agarwall Pvt. Ltd. Vs State of Odisha and others (Calcutta High Court)

The writ petition sought a direction to allow payment of arrear motor vehicle (MV) tax for six tipper vehicles while exempting penalties imposed for non-payment of tax within the prescribed period. The petitioner submitted that the delay in payment occurred due to inadvertence and requested permission to pay the arrear tax and challenge the penalties before the appellate authority. It was also stated that, due to non-payment of MV tax, additional tax, and penalties, certificate proceedings had been initiated and a certificate had been issued for attachment of the petitioner’s properties. The petitioner had already filed objections to the recovery proceedings, which remained pending.

The Transport Department submitted that certificate proceedings were initiated after demand notices were issued and the dues remained unpaid, though it acknowledged that the petitioner’s objections were pending consideration.

The High Court disposed of the writ petition by directing that if the petitioner pays the arrear MV tax within four weeks, the objection filed on 25 March 2026 shall be considered by the Tax Recovery Officer, RTO Talcher, in accordance with law, and the result shall be communicated to the petitioner. The Court further directed that no coercive measures for recovery of the amount shall be taken until the objection is decided.