Aloor Venkat Rohan Rao Vs State of Telangana (Telangana High Court)
Telangana High Court held that second vehicle tax under the provisions of Telangana Motor Vehicles Taxation Act doesn’t apply since old vehicle was sold prior to permanent registration of new vehicle purchased.
Facts- Petitioner, on 11-11-2024, purchased Mahindra XUV 700, AX7L from Neon Motors Private Limited, Ex-showroom price of which was Rs. 23,99,000/-. Additionally, petitioner paid Rs. 4,31,820/- as vehicle tax, which is 18% of the ex-showroom price, as per Schedule VI of the Telangana Motor Vehicles Taxation Act, 1963.
In compliance with Section 43 of the Motor Vehicles Act, 1988, petitioner obtained temporary registration of vehicle through the dealer with Temporary Registration Mark TG 10 ETR 9644, according to the provisions of the Telangana Motor Vehicle Rules, 1989, specifically Rule 84, which grants the dealer the authority to issue such registration for new vehicles sold.
Petitioner reserved Registration Number TG 11 A 5858 for the vehicle, with an allotment proceeding dated 19-11-2024 and he is required to complete the vehicle registration within 15 days from the date of reservation. On 25-11-2024, when petitioner approached the 3rd respondent authority to complete the registration process, he was informed that an additional tax of Rs. 86,990/- is required to be paid as ex-showroom price was Rs.25,93,999/-, and therefore, a differential tax amount of Rs.47,980/- was demanded; secondly, petitioner was informed that vehicle, though purchased as a new vehicle, was considered as ‘second vehicle’ as of registration date, and as per the provisions of the Telangana Motor Vehicles Taxation Act, 1963, an additional 2% tax of Rs. 39,010/- was applicable for second vehicle.
