Batra Henlay Cables Vs State of U.P. and 2 Others (Allahabad High Court)
In the case of Batra Henlay Cables Vs State of U.P. and 2 Others, the Allahabad High Court addressed the petitioner’s challenge to a condition in the noThe Allahabad High Court ruled that road tax exemption for EVs under the UP policy applies only to vehicles purchased within Uttar Pradesh.tification dated 02.03.2023 under the Uttar Pradesh Motor Vehicle Taxation Act, 1997. The petitioner contested the provision requiring electric vehicles (EVs) to be purchased in Uttar Pradesh to qualify for road tax exemption. The petitioner argued that this condition was contrary to the Act’s objective since road tax is imposed for operating vehicles within the state, irrespective of where they were purchased. The petitioner, who had purchased an EV in Jammu and registered it in Uttar Pradesh, claimed discrimination as they were denied the exemption.
The State defended the condition, emphasizing its fiscal implications. It argued that vehicles purchased within Uttar Pradesh contribute to the State’s GST revenue, while those bought outside do not. The government further contended that under Section 3 of the Act, the State is empowered to impose conditions for tax exemptions and that such conditions are neither arbitrary nor unreasonable. The notification provides a 100% road tax exemption only for EVs purchased and registered within Uttar Pradesh.
